Voluntary Term Life Products

Cost: $3,000; published 2019

Voluntary term life insurance continues to be a core product offering in carriers’ portfolios. Eastbridge research finds term insurance is offered by almost 80% of carriers in the market, putting it in the top five most-frequently offered products. In addition, term life accounted for 20% of all new sales in 2018, according to Eastbridge’s U.S. Voluntary/Worksite Sales Survey, the largest percentage for any voluntary product offered.

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 21 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
  • Product differentiators, challenges and future trends

The purpose of this report is to help carriers stay current on voluntary term life plans sold at the worksite and review the current state of the marketplace overall. This information will help carriers evaluate how their products compare to the competition and determine whether changes or updates 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

10. Critical Illness Rider

11. Chronic Illness/Long-Term Care Rider

12. Employee Options at Purchase

13. Other Riders

14. Value-Added Services (Group Products)

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. Simplified Issue Guidelines

6. Simplified Issue Underwriting Questions

7. Spouse/Child Underwriting

8. Full Underwriting Usage

9. Use of MIBs or Pharmacy Checks

10. Online EOI Process

11. Tobacco-Use Question

12. AIDS/ARC/HIV Question

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

14. Open Enrollments

15. Additional Coverage Rules

16. Takeovers vs. Virgin Cases

17. Renewal Process

E. Commissions and Costs

1. Writing-Level Commissions

2. Maximum Commissions

3. Structure of Premiums

4. Issue or Attained Age Rates

5. Published or Census Rates

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

7. Rate Guarantees Offered

8. Monthly Premium Rate Comparisons

F. Differentiators

1. Product Differentiators

G. Results

1. Term Life Sales for 2018

2. Product Profitability

3. Average Participation Percentage

4. Typical Policyholder and Account Demographics

5. Average Amount of Coverage

6. Average Annual Premium per Employee

7. Persistency/Lapse Rate

H. Challenges and Future Trends

1. Product Challenges

2. Voluntary Term Life Product Trends



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