Voluntary Term Life Products

Cost: $3,500; published 2023

Voluntary term life insurance accounted for more than 22% of all voluntary sales in 2021, according to the Eastbridge U.S. Voluntary/Worksite Sales report. Most carriers offer a term life product in their voluntary portfolio and consider it a core voluntary product offering. Sales for life products have increased in the last few years with the stronger emphasis on core products such as life and disability for all customer groups — brokers, employers and employees — because of the COVID-19 pandemic.

The Voluntary Term Life Products Spotlight™ Report enables carriers to stay current on the voluntary term life plans sold at the worksite and provides key competitive data including:

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

With this information, carriers can compare their own voluntary term life products to the competition and determine whether updates or changes are needed.

View Table of Contents

1. Executive Summary

A. Report Objectives

B. Methodology

C. Key Findings

2. Market Overview

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. Definition of Voluntary for Term Life

2. Types of Term Life Sold

3. Mix of Sales and Differences between Buy-up and Stand-alone (Group Products)

4. Length of Time in Market

5. Minimum/Maximum Face Amounts

6. Benefit Type

7. Waiver of Premium

8. Accelerated Death Benefit

9. AD&D Benefits

10. Critical Illness Benefits

11. Chronic Illness/Long-Term Care Benefits

12. Employee Options at Purchase

13. Other Riders/Benefits

14. Value-Added Services

15. Additional Benefits or Unique Features

16. Reduction in Benefits

17. Termination of Benefits

18. Plan Exclusions

B. Scope of Coverage

1. Spouse Coverage

2. Child/Dependent Coverage

C. Portability, Conversion and Continuation

1. Portability Options and Rates

2. Conversion Options

3. Continuation Provisions for Leave of Absence, Layoff, etc. 

D. Underwriting

1. Account Eligibility Guidelines

2. Ineligible Groups/Industries

3. Employee Eligibility Guidelines

4. Guaranteed Issue Guidelines

5. Contingent Guaranteed Issue Guidelines

6. Simplified Issue Guidelines

7. Simplified Issue Underwriting Questions

8. Spouse/Child Underwriting

9. Full Underwriting Use

10. Use of MIBs or Pharmacy Checks

11. Online EOI Process

12. Other Questions

13. Differences in Underwriting by Type of Group Term Life Product

14. Open Enrollments

15. Additional Coverage Rules

16. Perpetual GI

17. Renewal Process

E. Takeovers

1. Takeovers vs. Virgin Cases

2. Use Original Age or Current Age for Takeovers

F. Commissions and Costs

1. Writing-Level Commissions

2. Maximum Commissions

3. Structure of Premiums

4. Issue-Age or Attained-Age Rates

5. Published or Census Rates (Group Products)

6. Employer-Paid Rates vs Buy-up Rates (Group Products)

7. Rate Guarantees Offered (Group Products)

8. Monthly Premium Rate Comparisons

G. Differentiators and Product Results>

1. Product Differentiators

2. Term Life Sales for 2021

3. Product Profitability

4. Average Participation Percentage

5. Typical Policyholder and Account Demographics

6. Average Amount of Coverage

7. Average Annual Premium per Employee

7. Persistency/Lapse Rate

H. Challenges and Future Trends

1. Product Challenges

2. Voluntary Term Life Product Trends

3. Plans to Offer Future Term for Life Product



To purchase Reports: Call (860) 676-9633 or email [email protected]

Spotlight™ Report Index


For more information, please contact us at [email protected] or (860) 676-9633.



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