U.S. life insurance application activity finished 2023 at growth with year-to-date (YTD) activity up +2.9% compared with 2022. When taking a historical lookback, total activity YTD for 2023 was down -2.8% compared to 2021, flat at +0.5% compared to 2020, and up +4.4% compared to 2019. December 2023 was up +6.5% year-over-year (YOY) compared to December 2022, representing the second highest YOY growth rate for the month of December on record.

Eleven (11) out of twelve (12) months in 2023 saw YOY growth or flat activity. April, July, and November were flat while September saw declines, and all other months in 2023 saw YOY growth, including record-breaking growth in January. Growth in 2023 represents a reversal of patterns seen in 2022, where all months saw YOY declines or flat activity.

YTD growth in 2023 was largely driven by younger age groups with application activity for ages 0-50 at growth, while ages 51-70 saw declines, and ages 71+ saw flat activity. This is in contrast to patterns seen in 2022 when ages 0-50 saw the largest YTD declines. During 2023, activity for ages 0-30 was up +5.4% YTD in 2023, ages 31-50 up +5.5%, ages 51-60 down -1.9%, ages 61-70 down -2.5%, and ages 71+ flat at +0.7%. When examining monthly YOY growth by age band, we saw zigzagging patterns throughout 2023, most notably during Q4. From February through September, ages 0-50 lead in growth, while patterns for all other age bands fluctuated. Starting in October, we saw a significant shift for ages 71+ who experienced a surge in growth, taking the lead over other age bands in a pattern that continued through the end of the year.

Face amounts up to and including $250K saw flat activity in 2023 YTD and amounts over $250K saw growth, in the double digits for amounts over $1M. When examining activity by age bands, ages 0-30 saw YTD growth for all face amounts, in the double digits for amounts over $1M. Ages 31-50 saw flat activity YTD for amounts up to and including $250K, and growth for amounts over $250K, in the double digits for amounts over $1M. Ages 51-60 saw YTD declines for amounts up to and including $250K, and growth for amounts over $250K, in the double digits for amounts over $1M. Ages 61-70 saw YTD declines for amounts up to and including $250K, and growth for amounts over $250K, in the double digits for amounts over $250K up to and including $5M. Ages 71+ saw flat YTD activity for amounts up to and including $250K and amounts over $5M, and growth across all other face amounts, in the double digits for amounts over $250K up to and including $500K and amounts over $1M up to and including $5M.

All product types saw YTD growth in 2023 with Term Life up +2.0%, Universal Life up +6.9%, and Whole Life up +2.2%. When breaking down activity by product type into age bands, Term Life saw YTD growth for ages 0-50, flat activity for ages 51-60, and double-digit declines for ages 61+. Universal Life saw double-digit YTD growth for ages 0-50, and flat activity for ages 51+. Whole Life saw YTD growth for ages 0-50 and ages 71+, declines for ages 51-60, and flat activity for ages 61-70. It is worth noting that ages 0-50 experienced YTD growth for all product types, in the double digits for Universal Life.