More carriers plan to offer hybrid life product in worksite market
AVON, Conn., July 30, 2024 -- The need to broaden their portfolio to be more competitive and meet market demand is driving new carriers to enter the voluntary term for life market, according to Eastbridge Consulting Group's newest research.
Eastbridge's "Voluntary Term for Life Products" Frontline™ Report shows a relatively small number of carriers offer or are developing these plans so far, but most of them say the coverage is or will be a very important part of their overall voluntary portfolio.
"Several of the carriers we surveyed who already offer voluntary term for life products say it's a 'best of both worlds' plan, combining the best features of term insurance and permanent life plans," said Danielle Lehman, Eastbridge senior consultant.
The "Voluntary Term for Life Products" Frontline™ Report is based on a new survey of 34 voluntary/worksite carriers in April and May 2024 exploring the activities of carriers that offer or plan to develop a voluntary term for life product in the next 12 to 18 months. Topics in the study include reasons for offering or developing the product, the importance of having voluntary term for life as a part of the voluntary portfolio, and challenges carriers face with this product.
Other key findings in the report include:
- Some of the product differentiators carriers cite for this product include competitive rates, guaranteed benefits and the availability of long-term care benefits.
- All the new term for life products in development will include one or more riders for long-term care or chronic illness, and some will offer an accelerated benefit for critical illness or other services such as bereavement support.
- A few of the carriers that offer both term for life and voluntary whole or universal life attribute some negative impact on their permanent life product sales to the term for life product.
The "Voluntary Term for Life Products" and other Frontline™ reports are available exclusively to survey participants and members of Eastbridge's Information Partner™ program. For information on the program or to participate in future Frontline™ report surveys, contact Eastbridge at (860) 676-9633 or info@eastbridge.com.
About Eastbridge Consulting Group
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada. Follow Eastbridge on LinkedIn at https://www.linkedin.com/company/eastbridge-consulting-group.
CONTACT: Ginger Bates
EMAIL: gbates@eastbridge.com
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