Term life might be one of those oxymorons we rarely question, but these stepchildren of the mainstream life insurance industry are gaining in popularity.
Eastbridge Consulting, having completed its 2013 update of its annual Voluntary Term Life Products report, found that term life products were being snapped up in greater numbers and in a greater variety of product types.
Eastbridge concluded that employees/consumers see term products as solutions to fill some of the gaps they are experiencing in insurance coverage offered by employers.
For their part, employers are finding that offering a menu of products including various types of term coverage meets their twin objectives of offering choices to employees while containing the cost of benefits packages.
“Carriers are responding to that demand by providing more choices and options where term life products and optional benefits are concerned,” Eastbridge said in a release.
Other findings included:
- The types and number of riders available with voluntary term life products have increased dramatically in the last several years, providing more choices for employees.
- Simplified issue underwriting for term life plans is more common today than in the past.
- Differentiation for voluntary term life is primarily driven by special programs and services available with the plans, a variety of face amounts offered, and flexible underwriting offerings.