Eastbridge report shows strong growth in voluntary long-term disability market
AVON, CONNECTICUT, USA (June 29, 2023)
VLTD sales reach their highest level in six years
Demand for long-term disability coverage continues to grow in the voluntary/worksite market, according to Eastbridge Consulting Group’s most recent research.
Eastbridge’s Voluntary Long-Term Disability Products Spotlight™ Report shows 2022 sales hit their highest point in the past six years, totaling nearly $540 million. That represents a 6% increase from 2021, on top of a 20% jump from 2020 to 2021.
“More employers are transitioning their plans from employer-paid to premiums that are shared or 100% employee-paid, so demand for VLTD products should remain strong,” said Danielle Lehman, Eastbridge senior consultant. The report shows only 10% of employers now pay the full cost of this coverage for their employees, down from 51% a little more than a decade ago.
Voluntary Long-Term Disability Sales
|
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
Total sales |
$516.98 |
$537.48 |
$525.01 |
$488.46 |
$423.00 |
$507.71 |
$539.27 |
Percent of voluntary sales |
6.8% |
6.6% |
6.2% |
5.5% |
5.7% |
6.1% |
6.2% |
Eastbridge’s Voluntary Long-Term Disability Products Spotlight™ Report provides key competitive data on benefits and structure; administrative, underwriting and compensation practices; and current and future obstacles and trends in the voluntary long-term disability market based on written surveys and secondary sources collected from 19 VLTD carriers in March and April 2023.
Other key findings in the report include:
- All the carriers surveyed offer guaranteed issue underwriting for their VLTD plans, but often require higher participation than for most other voluntary products.
- All carriers offer both a stand-alone and a buy-up version of their long-term disability plans. These are usually the same product with the same benefits.
- VLTD coverage is portable for only six carriers, although 12 allow employees to convert their coverage to an individual plan that may have different rates, benefits and limitations.
Voluntary Long-Term Disability Products, a Spotlight™ Report
Information about purchasing the report is available on Eastbridge’s website. Those interested can email [email protected] or call (860) 676-9633.
About Eastbridge Consulting Group — is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada. Follow Eastbridge on LinkedIn.
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