Voluntary Long-Term Disability Insurance
Voluntary disability has always been an important part of worksite sales. But, historically, short-term disability sales or “mid-term” plans (durations of two years or less) dominated the market. While short-term products still account for most (74 percent) of voluntary disability sales, long-term disability sales are growing at a much faster rate.
Eastbridge Consulting Group’s latest report, Voluntary Long-Term Disability Insurance, examines the current state of the voluntary long-term disability (VLTD) market and identifies the market’s top players and competitors. The report is divided into six sections. The first section provides an overview of the report’s structure, along with key findings and recommendations. The second section looks at the marketplace from the viewpoint of the employer, employee, and broker. The third section examines the carrier perspective including current state of the market and general information on each carrier’s results, competitors, persistency, penetration, product success factors, etc. The remaining section details the VLTD products of 14 carriers including:
- Product features, including platform, product type, minimum/maximum benefits, durations, definition of disability, exclusions, etc.
- Underwriting/eligibility parameters
- Cost structure
- Commissions
The report is designed to help carriers better understand the VLTD insurance market, how their product “fits” relative to the competition, and whether any changes are needed.
Order Info: The report is available for purchase
for just $1,000. To order your copy, simply email us at info@eastbridge.com or
call (860) 676-9633. Published 2007.
Table
of Contents
1. Executive Summary
A. Report Objectives
B. Report Structure
C. Key Findings
D. Recommendations
E. Methodology
2. The Voluntary LTD Market Today—An Outside Perspective
A. The Need
B. Employer Perspective
1. Prevalence of Long-Term Disability Insurance
2. Interest in Offering LTD
C. Employee Perspective
1. VLTD Product Ownership
2. Importance of Disability Insurance
3. Interest in VLTD
D. The Broker Perspective
E. Summary
3. The Voluntary LTD Market Today—The Carrier Perspective
A. Reasons for Including VLTD in Portfolio
B. Key Competitors
C. Annual VLTD Sales Premium
D. Profitability
E. Unique Challenges of VLTD Product
F. Trends in VLTD Market
4. Product Features
A. VLTD Contract/Plan Type
B. Minimum/Maximum Benefit Amounts
C. Flat Benefit Amount/Percent of Salary
D. Maximum Percent of Salary Replacement
E. Employee Choice
F. Off-the-Job vs On- and Off-the-Job Benefits
G. Benefit Period Options
H. Definition of Disability
I. Typical Earnings Covered
J. Elimination Periods
K. Pre-Existing Exclusions
L. Coverage for Mental/Nervous Disorders
M. Exclusions
N. Coverage for Partial Disabilities
O. Benefit Coordination/Offsets
P. Waiver of Premium
Q. Rehabilitation Benefits
R. Other Benefit Provisions or Services/Features
S. Product Renewability
T. Coverage Continuation
U. Conversion/Portability Provision
5. Underwriting
A. Unacceptable Accounts
B. Guaranteed Issue Guidelines
C. Employee Eligibility Guidelines
D. Simplified Issue Guidelines
E. Full Underwriting Guidelines
F. Open Enrollment Options
6. Costs and Other Findings
A. Census Rated
B. Age Bands
C. Rate Guarantees
D. Composite Rates
E. Rate Comparison
F. Commissions
|
