Voluntary Long-Term Disability Plans

Cost: $3,500; published 2023

Voluntary long-term disability products are a smaller but still important offering in the voluntary/worksite market. Sales growth for VLTD products has been lower compared to many other voluntary product lines over the last 10 years, but the growth has been steady and accounted for almost $540 million in annual sales for 2022. With renewed interest in both disability and life products in light of the pandemic, and with employers continuing to shift costs to employees for disability coverage, offering a voluntary long-term disability product can provide a competitive advantage for carriers in the marketplace.

The Voluntary Long-Term Disability Products Spotlight™ Report enables carriers to stay up-to-date on current VLTD products sold in the voluntary/worksite market and provides key competitive data on benefits and structure; administrative, underwriting and compensation practices; and current and future obstacles and trends. With this information, carriers can compare their own voluntary long-term disability products to the market and determine if they need to make changes to remain competitive.


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 VLTD Market

2. Employer Perspective

3. Employee Perspective

4. Competitors

3. Carrier Overview

A. General Carrier Information

1. Definition of Voluntary

2. VLTD Products Offered

3. Length of Time in Market

4. Product Details by Carrier

A. Product Specifics

1. Product Platform

2. Minimum/Maximum Monthly Benefit Amounts

3. Flat Benefit Increments/Percent of Salary

4. Maximum Percent of Salary Replacement and Covered Earnings Options

5. On-and/or-Off-the-Job Benefits

6.Benefit Period Options

7.Definition of Disability

8.Elimination Period Options

9.Pre-Existing Exclusions

10.Coverage of Mental and Nervous Disorders


12.Partial/Residual Disability Coverage

13.Coordination of Benefits

14.Waiver of Premium

15.Rehabilitation Benefits

16. Employee Options

17.Value-Added Services/Benefits

18.Other Optional Benefits or Riders


B. Portability, Conversion and Continuation of Coverage

1. Convertible to Individual Plan

2. Portability Provision

3. Continuation of Coverage

C. Underwriting

1. New/Virgin Cases

2. Account Level Underwriting

3. Employee Eligibility Guidelines

4. Guaranteed Issue

5. Simplified Issue

6. Full Underwriting

7. Online EOI

8. Open Enrollment Options

9. Requirements for Increasing Coverage

10. Late Entrants

11.Renewal Process

D. Takeovers

1. Percentage Mix of Takeovers and Virgin Cases

2. Takeover Guidelines

3. Waiver of Pre-Existing

E. Commissions

1. Commissions Structure

2. Reduction of Commissions for Takeovers

F. Premiums

1. Rating Method

2. Age Rating

3. Rate Differences

4. Rate Guarantees

5. Rate Comparisons

G. Market Differentiators

1. Differentiating Features or Benefits

H. Claims and Profitability

1. Claims Problems

2. Speed of Claims

3. Percent of Claims Denied

4. Loss Ratio

5. Profitability

I. Results

1. 2022 VLTD Sales Results

2. Typical Policyholder/Account Demographics

3. Average VLTD Premium

4. Average Participation Percentage

5. Persistency

J. Challenges and Future Trends

1. Product Challenges

2. VLTD Future Trends



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

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



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