Voluntary Whole and Universal Life Products

Cost: $3,000; published 2015

Most of the key carriers in the voluntary market offer either a whole or universal life product, or both to their customers. These plans account for consistently around seven percent of all voluntary sales premiums written in the last seven years and are offered by 14 percent of U.S. employers on a voluntary basis, so they are an integral part of a robust voluntary portfolio. However, the higher complexity of the product (compared to term life and other health products) along with an increase in self-service enrollments and consistently low interest rates has sometimes made it a difficult sale at the employee level.

The purpose of this Spotlightâ„¢ Report, Voluntary Whole and Universal Life Products, is to help carriers better understand the universal and whole life voluntary/worksite marketplace by providing specific information regarding:

  • Product features, including product type, minimum/maximum face amount, available riders, loads and fees, etc.
  • Underwriting guidelines
  • Pricing and cash values
  • Commissions
  • Product challenges and future trends

With this data, carriers can evaluate their own universal and whole life products and approach to the market to determine if their offering is competitive in an ever-changing market.

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 Universal and Whole Life Market

2. Employer Perspective

3. Employee Perspective

4. Broker Perspective

5. Key Competitors

3. Product Details by Carrier

A. Product Specifics

1. Product Type

2. Product Platform

3. Employee Minimum and Maximum Face Amounts

4. Waiver of Premium Benefit

5. Spouse Coverage

6. Coverage for Children

7. AD&D Benefits

8. Accelerated Death Benefits

9. Critical Illness Benefits

10. Long-Term Care Benefits

11. Disability Benefits

12. Other Riders or Benefits

13. Surrender Charge Time Period

14. Loads and Fees

15. Frequency of Rider Offerings, Participation Rates and Rider Sales

16. Reduction of Benefits

17. Termination of Benefits

18. Spouse/Child Plans

19. Limitations and Exclusions

B. Underwriting

1. Accounts Not Accepted

2. Account-Level Underwriting

3. Employee Eligibility Guidelines

4. Guaranteed Issue Guidelines

5. Simplified Issue Guidelines

6. Smoking Question

7. AIDS or HIV Question

8. Spouse Underwriting Guidelines

C. Commissions and Costs

1. Base and Maximum Commissions

2. Bonuses and Incentives

D. Costs and Cash Values

1. Male/Female or Unisex Rates

2. Smoker/Non-Smoker Rates

3. Face Amount Generated

4. Guaranteed Cash Value at Age 65

E. Whole Life Face Amounts Side-by-Side Comparisons

F. Whole Life Guaranteed Cash Value at Age 65 Side-by-Side Comparisons

G. Universal Life Face Amounts Side-by-Side Comparisons

H. Universal Life Guaranteed Cash Value at Age 65 Side-by-Side Comparisons

4. Competition, Results and Future Trends

A. Competition and 2014 Results

1. Differentiating Product Features or Benefits

2. UL/WL Sales for 2014

3. Future Product Growth

4. Average Face Amount

5. Average Annual Premium per Employee

6. Typical Policyholder and Account Demographics

7. Average Participation Percentage

8. Persistency/Lapse Rate

B. Challenges & Future Trends

1. Product Challenges

2. Future Trends


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