Voluntary term life products maintain growth in a changing market, finds Eastbridge Consulting Group

AVON, CONNECTICUT, USA (February 6, 2020)

Despite new product entrants and market focus on supplemental health products, more than half of the 24 plans included in Eastbridge’s Voluntary Term Life Products Spotlight™ Report experienced year-over-year or multiple-year sales growth. Many even posted double-digit growth. Participating carriers mentioned a variety of features that help them differentiate their offering in a competitive marketplace, most commonly, specific value-added services, flexible plan designs, and varied re-enrollment options. When asked about current and future trends, many surveyed carriers noted pressure to liberalize plan features, including higher GI limits and benefit maximums, longer rate guarantees, and lower pricing, to name a few.

The 2019 Voluntary Term Life Products Spotlight™ Report provides detailed data from 21 carriers active in the market and covers topics such as product features and benefits, underwriting guidelines/eligibility parameters, commissions, pricing, product differentiators, challenges and future trends.

Following are a few additional findings from the report:

• Voluntary group term life is the dominant product sold in the market, though there are a few carriers that also sell or only sell level-term plans on a group or individual platform.
• Guaranteed issue amounts have increased, though maximums varied widely by carrier.
• Portability is offered on all surveyed group plans, most with specific restrictions.

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.