Voluntary life insurance sales jumped 25% in 2021 to lead the voluntary industry’s strong rebound last year, according to Eastbridge’s annual U.S. Voluntary/Worksite Sales Report.
A 58% increase in universal life and whole life sales led the product line. Term life sales grew 15% and continue to represent the highest share of the voluntary market overall at 22.3%, the recently released report showed.
Disability insurance sales also outpaced industry growth, with a 20% increase in long-term disability sales and a 14% increase in short-term disability sales.
“The strong sales of life and disability protection seem to indicate a renewed interest in covering ‘the basics,'” said Nick Rockwell, Eastbridge president. “Our research suggests these and other voluntary products will continue to grow as the pandemic showed many workers how they help cover unexpected medical bills.”
Sales of nearly all voluntary products rebounded last year, generating a strong overall industry growth rate of 11.3% in 2021 for a total of $8.307 billion. Growth was more moderate but still trending up for hospital indemnity/supplemental medical products at 9%, critical illness sales at 4% and accident sales at 3%. Cancer sales declined slightly (-1%), while vision coverage dropped significantly (-33%). Long-term care sales, while a very small portion of the market, rose 9%. AD&D was up 14% and represented 1.6% of the market.
The annual U.S. Voluntary/Worksite Sales Report estimates sales for the entire voluntary industry, with detailed data on the performance of 67 group and individual carriers. The report represents the largest number of carriers included in any sales report for the industry.
Carriers interested in participating in next year’s study can email Eastbridge at [email protected]. All participants receive a free copy of the complete findings, including company-specific results.
Avon, Conn.-based Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the U.S. and Canada.