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in this issue:
Past Issues
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Fall 2007 / No. 73
What are the hot voluntary products today? Well, if you believe much of what has been written in the trade press lately about voluntary, you would think it is legal insurance, pet insurance, long-term care, or concierge services. Not to disparage any of these products (because they do serve legitimate needs), but we don’t think that portraying these products as the latest and greatest voluntary products does the industry any favors. Instead, it seems to portray the industry (to those not actively involved it is) as on the “fringes” of the benefits world.
We think it’s important to make sure that those looking at our industry know that the voluntary market is primarily about selling “mainstream” products such as disability, life, and dental insurance. In fact, almost half (44 percent) of the voluntary sales in 2006 were for life or disability insurance.
Voluntary Product Mix for 2006
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And the industry is actively marketing products to assist employees and employers in dealing with healthcare costs. In fact, one of the fastest growing product lines over the past three to four years has been the “voluntary medical” product line (hospital indemnity, supplemental medical, and limited benefit medical plans). |
Yes, there is a place for non-traditional voluntary products like legal or pet insurance (as well as for a whole range of non-insurance products), but let’s not let our enthusiasm over an ever-broadening array of options paint a misleading picture about the role of voluntary products in meeting the most basic of employee benefit needs.
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