Voluntary Term Life Products

Cost: $3,500; published 2026

This report provides a general overview of the voluntary term life market and then examines, in detail, the voluntary term products of 24 carriers active in the market representing 30 term life products.  The report includes data about product benefits and structure, underwriting, commissions and costs, product differentiators and results, as well as current challenges and future trends.

Voluntary term life insurance accounted for more than 21% of all voluntary sales in 2025, according to Eastbridge’s “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 term life products rebounded after the COVID-19 pandemic but have remained relatively flat over the last two years.

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:

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

Carriers can use this information to compare their own term life products to competitors and determine updates or changes they may need to make.

View Table of Contents

Table of Contents

  1. Executive Summary

A. Report Objectives
B. Methodology
C. Key Findings

  1. Market Overview

A. The Overall Voluntary Term Life Market
B. Employer Perspective
C. Employee Perspective
D. Broker Perspective
E. Key Competitors

  1. 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. Age-Based Reduction in Benefits
    17. Age-Based Termination of Benefits
    18. Term for Life
    19. Plan Exclusions

 

B. Scope of Coverage

    1. Spouse Coverage
    2. Child/Dependent Coverage

C. Portability, Conversion and Continuation

    1. Portability Options and Rates (Group Products)
    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. Other Questions
    11. Use of MIBs or Pharmacy Checks
    12. Online EOI Process
    13. Differences in Underwriting by Type of Group Term Life Product
    14. Open Enrollments
    15. Subsequent GI Offer Rules
    16. Other Open Enrollment Options
    17. Renewal Process
    18. Takeovers vs. Virgin Cases
    19. Takeover Treatment for Existing Coverages
    20. Use of Original Age or Current Age for Takeovers

 E. Commissions and Costs

    1. Writing-Level Commissions
    2. Structure of Premiums
    3. Issue-Age or Attained-Age Rates
    4. Published or Census Rates (Group Products)
    5. Employer-Paid Rates vs Buy-up Rates (Group Products)
    6. Rate Guarantees Offered (Group Products)
    7. Monthly Premium Rate Comparisons

F. Differentiators

  1. Product Differentiators

G. Results and Future Trends

    1. Term Life Sales for 2025
    2. Product Profitability
    3. Target and Average Participation Percentage
    4. Mortality Rates over Last 3-5 Years
    5. Persistency and Retention
    6. Typical Policyholder and Account Demographics
    7. Average Amount of Coverage
    8. Average Annual Premium per Employee

H. Challenges and Future Trends

    1. Product Challenges
    2. Voluntary Term Life Product Trends
    3. Plans to Offer Future Term for Life Product

 

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