We all know that voluntary products are experiencing a big boom right now. Eastbridge Consulting Group data finds voluntary sales increased again in 2013, reaching $6.644 billion, up from $6.03 billion in 2012.
Breaking down the data further, some products are far outpacing others. Here are the top five voluntary products, by sales, according to Eastbridge data.
The data comes from Eastbridge’s annual U.S. Worksite/Voluntary Sales Report, which analyzes data from more than 60 carriers.
5. Hospital indemnity/supplemental medical
Percentage of total voluntary sales in 2013: 8 percent
Hospital indemnity/supplemental medical sales saw a decrease in 2013, but they were still strong enough to be the fifth best-selling product. Total sales were about $552 million.
Brokers say the Patient Protection and Affordable Care Act is creating big opportunities for them to sell supplemental plans, not only to help cover increasing deductibles in employer-based and exchange-based plans, but also as a cheaper alternative to both.
Percentage of total voluntary sales in 2013: 12 percent
Though accident sales were down slightly in 2013, they are still a significant contributor to voluntary sales at $775.1 million. Industry insiders agree accident insurance is one voluntary product to watch this year, as it is gaining momentum.
Percentage of total voluntary sales in 2013: 13 percent
Dental was among the products with the highest year-over-year increase. Others were term life, short-term disability and critical illness, each of which had more than a 10 percent increase in sales compared to 2012, Eastbridge said.
Percentage of total voluntary sales in 2013: 21 percent
Total disability sales were $1.367 billion for 2013, up 8 percent over 2012, accounting for 21 percent of voluntary NBAP, the same share of sales as in 2012. Short-term disability sales accounted for 68 percent of the total and were up 11 percent over 2012, while long-term disability sales were up by just 2 percent.
1. Life insurance
Percentage of total voluntary sales in 2013: 28 percent
Life insurance accounted for 28 percent of all sales, generating $1.8 billion and a 22 percent increase over 2014. Term accounted for 76 percent of the total life new business annualized premium, up from 72 percent in 2012, and had a 29 percent increase alone. Universal and whole life sales were also up with a small increase of 3 percent over 2012 sales.