The life insurance industry in the US is recovering well from the economic downturn, with first quarter sales on policies up by at least a third compared to last year. Sales were reported to be especially strong in guaranteed universal life insurance and longer-term life insurance .

One company has reported life insurance sales up by 53 per cent in the first quarter, primarily due to sales of universal life and indexed universal life policies, as well whole life sales.

While still focused on receiving guarantees and security, clients are using the policies to offset other risks. Despite the fact that the cash value of universal life policies do not build up by a huge amount, the policies do provide a cheap route to permanent death benefit . However, the take up has not been so high with younger clients, as the low internal rate of return makes it a less worthwhile, as its death benefit won't grow a lot over the years.

With about two-thirds of US insurance business coming from term life insurance, with life insurance making up the rest, whole life policies are also becoming popular for wealthy clients for a variety of reason, such as protection, as a means to earn attractive returns and for the associated tax advantages.