Voluntary Term Life Products

Cost: $3,000; published 2016

Voluntary life insurance remains the most frequently offered voluntary product by carriers in the U.S. According to Eastbridge’s 2016 U.S. Voluntary/Worksite Sales Survey, term life in particular accounted for almost 22 percent of all new sales in 2015, the largest percentage for any voluntary product offered. Additionally, reported sales for voluntary term life have doubled since 2008.

The Voluntary Term Life Products Spotlightâ„¢ Report is designed to help carriers better understand the competitive landscape around term life plans sold at the worksite. The report provides data from 22 carriers active in the market and covers the following topics:

  • Product features and benefits (product type and platform, minimum/maximum face amounts, available riders, etc.)
  • Underwriting guidelines/eligibility parameters
  • Commissions
  • Pricing
  • Challenges and future trends

With this data, carriers can evaluate their own voluntary term products and strategies to determine if changes are needed to make their offering more competitive.

View Table of Contents

1. Executive Summary

A. Report Objectives

B. Methodology

C. Key Findings

2. Market Overview and General Carrier Information

A. The Overall Voluntary Term Life Market

B. Employer Perspective

C. Employee Perspective

D. Broker Perspective

E. Key Competitors

3. Product Details by Carrier

A. Product Structure and Specifics

1. Product Platform

2. Definition of Voluntary Term Life Sold

3. Product Type

4. Minimum/Maximum Face Amounts

5. Benefit Type

6. Waiver of Premium

7. Accelerated Death Benefit

8. Spouse Rider (Maximum Face Amount)

9. Child/Dependent Rider

10. AD&D Rider

11. Critical Illness Rider

12. Long-Term Care Rider

13. Other Riders

14. Additional Benefits or Unique Features

B. Scope of Coverage and Portability

1. Standalone Spouse Coverage

2. Reduction in Benefits

3. Termination of Benefits

4. Portability Options and Rates

5. Conversion Options

6. Plan Exclusions

7. Family Medical Leave Act Provision

8. Employee Options at Purchase

C. Underwriting

1. Account Eligibility Guidelines

2. Employee Eligibility Guidelines

3. Guaranteed Issue Guidelines

4. Simplified Issue Guidelines

5. Spouse/Child Underwriting

6. Tobacco-Use Question

7. AIDS/ARC/HIV Question

8. Differences in Underwriting by Type of Term Life Product

9. Use of MIBs or Pharmacy Checks

10. Full Underwriting Usage

11. Initial and Ongoing Open Enrollment Options

12. Additional Coverage Rules

13. Renewal Process

D. Commissions and Costs

1. Writing-Level Commissions

2. Maximum Commissions

3. Structure of Premiums

4. Published or Census Rates

5. Issue or Attained Age Rates

6. Employer-Paid Rates vs Buy-up Rates

7. Premium Guarantees Offered

8. Premium Rate Comparisons

4. Differentiators, Results and Future Trends

A. Differentiators and 2015 Results

1. Product Differentiators

2. Term Life Sales for 2015

3. Product Profitability

4. Length of Time in Market

5. Average Participation Percentage

6. Typical Policyholder and Account Demographics

7. Average Amount of Coverage

8. Average Annual Premium per Employee

9. Persistency/Lapse Rate

10. Takeovers vs. Virgin Cases

B. Challenges & Future Trends

1. Product Challenges

2. Voluntary Term Life Product Trends


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