U.S. life insurance sales rose 7 percent in the three months ended June 30, the second straight quarter of growth, as clients returned to buying policies after a slump last year.

Sales in the first half of 2010 climbed 9 percent, according to the trade group Limra International in a statement today. Whole life insurance, which offers a death benefit and a savings feature, posted the biggest gain, rising 23 percent in the second quarter. Products with death benefit guarantees gained 5 percent in the first six months of this year.

“Things appear to be looking up,” said Ashley Durham, senior analyst for product research at Limra, in the statement. “Nearly half of all companies experienced double-digit growth during the first half of this year.”

The first half of 2009 had the steepest six-month drop in individual life insurance sales in almost 70 years, according to Durham. Life insurers, whose finances were hurt by asset declines in 2008, are posting improved sales and profit. MetLife Inc., the biggest U.S. life insurer, boosted its earnings in the second quarter as revenue rose. No. 2 Prudential Financial Inc. reported profit that jumped sevenfold on investments from the year-before period.

‘Business Momentum’

“Sales and flows continue to be strong,” said John Strangfeld, chief executive officer of Newark, New Jersey-based Prudential in a conference call this month. “Our business momentum continues at pace.”

The total number of life insurance policies increased 1 percent for the quarter, according to Limra. Term life insurance was the only product in which sales declined in the second quarter, as premiums dropped 11 percent, according to Limra.

Life insurers have drawn criticism from state and national officials for holding and investing about $28 billion from retaining death benefits. New York Attorney General Andrew Cuomo opened a fraud probe in July to look into the retained asset accounts.

Prudential slid 2.7 percent to $49.23 at 12:50 p.m. in New York Stock Exchange composite trading. The stock had gained 1.7 percent this year before today. New York-based MetLife fell 0.8 percent to $36.20. MetLife shares have advanced 3.2 percent this year as of yesterday.