What You Need to Know
- The number of U.S. employer groups with hospital indemnity benefits increased sharply in the third quarter.
- Employers were more likely to add short-term disability programs, but the number of workers with short-term disability coverage increased just a little.
- Permanent life did well but not as well as term life.
Interest in hospital indemnity insurance has been sizzling in the U.S. workplace benefits market, according to new LIMRA survey data.
Employers were 58% more likely to add hospital indemnity benefits in the third quarter of this year than in the third quarter of 2020, LIMRA says.
The number of workers with hospital indemnity coverage increased 20%, year-over-year, and new annualized premiums from hospital indemnity sales increased 25%.
Hospital indemnity policies pay fixed cash benefits when insureds experience covered life events.
LIMRA included the hospital indemnity figures in a new batch of workplace benefits sales survey results. The Windsor, Connecticut-based financial services research organization bases the survey results on data from insurers that account for about 90% of new annualized premiums in the workplace benefits markets.
LIMRA looked at other supplemental health benefits, disability insurance benefits and life insurance benefits as well as at hospital indemnity insurance.