Discussions:101,499. |. Messages:1,352,505. |. Members:85,225


Voluntary Benefits: Term life accounts for largest share of inforce premium

Insurance Forums Staff

Term life insurance accounts for the largest share of voluntary inforce premium by product, according to Eastbridge Consulting Group’s annual U.S. State ESI and EPI Data report, released in late August.

The top five products for inforce premium include:

1. Term life insurance

2. Dental insurance

3. Short-term disability

4. Long-term disability

5. Universal/Whole life

When comparing the mix of sales and inforce for each product type, there are some definite differences for some products. Life insurance has a significantly higher share of inforce premium than of sales, though it claims the largest share for both. “Life insurance enjoys the benefit of higher persistency than other voluntary products,” says Gil Lowerre, Eastbridge President. “Over time, that has helped its inforce premium accumulate better than other products.” Accident has a notably higher percentage of sales than inforce, indicating somewhat lower persistency than life insurance. The other business lines are relatively close in mix of sales versus inforce premium.

The U.S. State ESI and EPI Data report is an adjunct to Avon, Conn.-based Eastbridge’s annual U.S. Voluntary/Worksite Sales Report and includes sales and inforce data by state, as reported by the survey participants. In addition, the report provides information on sales by employer size and inforce premium by line of business. The report is free but available only to survey participants. For more information on becoming a participant in the next annual survey, contact the company at [email protected] or call (860) 676-9633.

• SEE ALSO: Optional benefits: Changing a ‘no’ to a ‘yes’

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



Leave a Comment