Term Terminus: California Broker's Fifth Annual Term Survey Culminates in a Comprehensive Overview of the State's Term Insurance Market

1. What percentage of the cases you underwrote last year were issued at your top two preferred non-smoker classes?

Banner Life: 64%
MetLife Investors USA Insurance Company: 40.4%
Principal Financial Group: 63%
Prudential: 50% (All data reflects policies sold through Prudential Select Brokerage in 2006.)
Transamerica Occidental Life: 68%
West Coast Life: Proprietary

2. What percentage of the cases you underwrote last year were issued at your top two standard nonsmoker classes?

Banner Life: 33 %
MetLife Investors USA Insurance Company: 49%
Principal Financial Group: 6%
Prudential: 44%*
Transamerica Occidental Life: 28%
West Coast Life: Proprietary

3. What percentage of the cases you underwrote last year were issued at your top two standard smoker classes?

Banner Life: 3%
MetLife Investors USA Insurance Company: 5.1%
Principal Financial Group: A+
Prudential: 6%*
Transamerica Occidental Life: 4%
West Coast Life: Proprietary

4. What is your A.M. Best Rating?

Banner Life: A+
MetLife Investors USA Insurance Company: A+
Principal Financial Group: A+
Prudential: A+
Transamerica Occidental Life: A+
West Coast Life: A+

5. What are the convertibility options?

Banner Life: Convertible for the duration of the guaranteed level premium period or up to attained age 70, whichever comes first. Policies issued at age 66 or over are convertible during the first five policy years.

MetLife Investors USA Insurance Company: For issue ages less than 65, the policy is convertible until the earlier of the end of the initial level period or the policy anniversary at the insuredÕs attained age 70. For issue ages 65 and older the policy is convertible for the first five policy years.

Principal Financial Group: Term policies are convertible to any of our currently issued permanent life insurance products up to the insureds age of 65.

Prudential: Term Essential 10/15/20/30 Ð Convertible to the end of the level premium period or age 65, whichever is earlier, but never less than 5 years.

Prudential: Term Elite 10/15/20 Ð Convertible to age 65, but never less than 5 years. A Term Conversion Premium Credit is available during the first 5 years. The Term Conversion Premium Credit is fully commissionable upon conversion in years 3-5.

Prudential: PruLife Return of Premium Term 15/20/30 Ð Convertible to age 65 or 10th policy anniversary, whichever is earlier, but never less than 5 years.

Transamerica Occidental Life: Up to the earlier of the end of the initial level premium period or insured's 70th birthday (75th birthday for Preferred Plus).

West Coast Life: Conversion allowed on all term products until the end of the level term period for the 10,15, 20-year policies, convertible for 20 years for the 25 & 30-year policies. Conversions must be before insuredÕs attained age 75.

6. May a term policyholder select any permanent product or is the term policyholder restricted to certain products?

Banner Life: Advantra is a 20-year term alternative UL plan and is not available for conversions. All other UL plans are available for conversions.

MetLife Investors USA Insurance Company: In general all products are available, but there may be rare exceptions. All base products are available.

Principal Financial Group: Any permanent product.

Prudential: The policyholder may select any individual permanent plan regularly offered for sale. Currently, the policyholder is administratively allowed to convert to a survivorship policy, although the company can choose to discontinue this practice.

Transamerica Occidental Life: Convertible to designated UL

West Coast Life: Term may be converted to whichever permanent plans are available for conversion.

7. What are the available riders, such as WP, Child, AD&D?

Banner Life: Waiver of premium
MetLife Investors USA

Insurance Company: Waiver of Premium, Convertible Waiver of Premium, and Acceleration of Death Benefit.

Principal Financial Group: Waiver of premium

Prudential: Waiver of Premium, Child Protection Rider, and Accidental Death riders are all available.

Transamerica Occidental Life: WP, Children's and Accident Indemnity

West Coast Life: WP, Accidental Death Benefit, Children's Insurance, Accelerated Death Benefit

8. Do you offer any other riders? Please describe.

Banner Life: No
MetLife Investors USA
Insurance Company: Yes, Long Term Care Guaranteed Purchase Option.
Principal Financial Group: No.
Prudential: An accelerated death benefit is available.
Transamerica Occidental Life: No

9. What was the average face of issued cases last year?

Banner Life: $644,686
MetLife Investors USA Insurance Company: $880,448
Principal Financial Group: $634,756
Prudential: Average Brokerage Face Amount - $892,642
Transamerica Occidental Life: $620,000
West Coast Life: Proprietary

10. What was the average premium of issued cases last year?

Banner Life: $1,198 annually
MetLife Investors USA Insurance Company: $1446
Principal Financial Group: $1,110
Prudential: Average Broker Premium (Annual) - $2,093
Transamerica Occidental Life: $1,600
West Coast Life: Proprietary

11. What term periods do you cover?

Banner Life: 10, 15, 20, and 30
MetLife Investors USA
Insurance Company: 10, 15, 20, and 30 years.
Principal Financial Group: 10 year, 15 year, 20 year, 30 year, ART
Prudential: Term Essential Ð 10/15/20/30
Term Elite 10/15/20
PruLife ROP Term Ð 15/20/30
Transamerica Occidental Life: YRT, 10, 15, 20, 25 and 30
West Coast Life: 10, 15, 20, 25 & 30

12. What percentage of term was 10-year level?

Banner Life: 24%
MetLife Investors USA Insurance Company: 15%
Principal Financial Group: 29%
Prudential: 41%
Transamerica Occidental Life: 39%
West Coast Life: Proprietary

13. What percentage of term was 20-year level?

Banner Life: 50%
MetLife Investors USA Insurance Company: 31%
Principal Financial Group: 60%
Prudential: 33%
Transamerica Occidental Life: 34%
West Coast Life: Proprietary

14. What percentage of term was 30-year level?

Banner Life: 12%
MetLife Investors USA Insurance Company: 46%
Principal Financial Group: 4%. Also, 3% 15 year term, 4% ART
Prudential: 9%
Transamerica Occidental Life: 12%
West Coast Life: Proprietary

Chart 1 (pdf)
Chart II (pdf)

Top