Voluntary Long-Term Disability Plans

Cost: $3,000; published 2015

As employers continue to move away from fully funding benefits, demand for voluntary product solutions to help fill the gaps continues to grow, and long-term disability is no exception. In Eastbridge’s 2014 MarketVision: The Employer Viewpoint™ report, the percent of employers offering LTD as a fully employer-paid benefit was 51% in 2009, 28% in 2012 and only 24% in 2014. With these significant changes and the general growth of the voluntary market overall, the opportunities for increasing voluntary long-term disability sales are promising.

The purpose of this report is to review the current state of the voluntary long-term disability (VLTD) market. In addition, this report will help carriers better understand this market, how their product “fits” relative to the competition and whether any changes or updates are needed.


View Table of Contents

1. Executive Summary

A. Report Objectives

B. Methodology

C. Key Findings

2.Market Overview and Competition

A. Market Overview

1. The Overall VLTD Market

2. Employer Perspective

3. Employee Perspective

4. Broker Perspective

5. Key Competitors

3. Product Details by Carrier

A. Product Features

1. Definition of Voluntary

2. VLTD Products Offered

3. Product Platform

4. Minimum/Maximum Benefit Amounts

5. Flat Benefit Increments/Percent of Salary

6. Maximum Percent of Salary Replacement

7. Employee Benefit Amount Options

8. On- and/or Off-the-Job Benefits

9. Benefit Period Options

10. Definition of Disability

11. Covered Earnings Definition

12. Elimination Periods Options

13. Pre-Existing Exclusions

14. Waiver of Pre-Existing for Takeovers

15. Coverage for Mental and Nervous Disorders

16. Exclusions

17. Partial Disability Coverage

18. Coordination of Benefits

19. Waiver of Premium

20. Rehabilitation Benefits

21. Additional Plan Benefit Provisions or Value-Added Services/Features

22. Other Optional Benefit Provisions or Riders

23. Employee Choices Allowed

24. Renewability

B. Continuation of Coverage

1. Circumstances for Continuation of Coverage

2. Conversion/Portability Provision

C. Underwriting

1. Unacceptable Accounts

2. Account-Level Underwriting

3. Employee Eligibility Guidelines

4. Guaranteed Standard Issue


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