Whole Life Insurance Dominates the Voluntary Market
In a significant shift within the voluntary benefit landscape, whole life insurance products are now leading the charge against universal life products. According to a recent study conducted by Eastbridge Consulting Group, a reputable entity in the insurance research sector, the findings reveal that a remarkable 80% of surveyed carriers now offer whole life products compared to less than half for universal life offerings.
Examining Sales Growth in Whole Life Insurance
The sales figures speak volumes, illustrating a clear preference among consumers. Whole life insurance sales have witnessed an impressive growth, reaching $465 million, a leap from $368 million in universal life sales during the last fiscal year. This upward trend indicates a robust interest in the stability and benefits provided by whole life products in comparison to their universal counterparts.
Persistent Trends in Permanent Life Insurance
Danielle Lehman, a senior consultant at Eastbridge, highlights a fascinating trend emerging from the report: the increase in available benefits tailored for chronic illnesses. This data suggests that many employers are opting to include chronic illness benefits within their plans, surpassing traditional long-term care benefits, thereby enhancing the versatility and attractiveness of whole life products.
Key Insights from the Eastbridge Report
The Eastbridge report delves into various aspects of both whole and universal life insurance products, incorporating data gathered from 15 voluntary carriers and analyzing 16 permanent life plans. Essential topics covered include product features, underwriting standards, face amounts, guaranteed cash value examples, technology usage, and industry challenges moving forward. This report serves as a valuable resource for carriers seeking to assess and strengthen their product offerings within the competitive life insurance market.
Noteworthy Findings
The report also outlines several key findings that shed light on the shifting preferences in the market:
- An increasing number of carriers are now leaning towards providing permanent life products via group platforms rather than individual ones. This trend is largely attributed to relatively fewer regulatory burdens and greater flexibility in plan design.
- Common additional benefits associated with whole and universal life products include accelerated death benefits for terminal illnesses, waiver of premium, and accidental death coverage, enhancing the appeal of these insurance options.
- The maximum guaranteed issue amounts for permanent life insurance continue to rise, now ranging from $15,000 to $475,000, showcasing a growing confidence in these products.
Importance of Industry Reports
These insights are crucial for insurance carriers aiming to navigate the complexities of product offerings. By leveraging the data and analyses provided in the Eastbridge report, companies can refine their strategies and enhance their market competitiveness.
About Eastbridge Consulting Group
Eastbridge Consulting Group, part of NMG Consulting, stands at the forefront of research and consulting in the voluntary and worksite benefits market across North America. They specialize in delivering strategic insights and analytics that inform growth and competitiveness in the insurance sector. Those interested in further exploring Eastbridge's work can follow them on LinkedIn to stay updated on the latest industry trends and insights.
Frequently Asked Questions
What is the main finding of the Eastbridge report?
The report highlights the dominance of whole life products over universal life products in the voluntary market, with considerable sales growth.
Why have whole life insurance sales increased?
The preference for whole life insurance can be attributed to its stability and comprehensive benefits compared to universal life options.
What additional benefits are trending in life insurance plans?
Chronic illness benefits are gaining traction, with more plans offering them as optional benefits for employers.
How are insurance carriers adapting to regulatory changes?
Many carriers are increasingly opting for group platforms for permanent life products, which often involve fewer regulatory requirements.
Where can I find more information about Eastbridge Consulting Group?
For more insights and reports, companies can explore Eastbridge's offerings through their LinkedIn profile or website.
