Voluntary sales had another strong year in 2014, jumping nearly 4 percent, new industry data shows.
Total voluntary/worksite sales for 2014 are estimated at $6.89 billion, up from $6.644 billion in 2013, Eastbridge Consulting Group said. The data comes from the group's annual U.S. Worksite/Voluntary Sales Report, which analyzes data from more than 60 carriers.
As in years past, certain voluntary products swallowed the biggest share of the market, and they’re continuing to hold their ground. In fact, all five of the top voluntary products were seen on last year’s list.
Here are the top five voluntary products, by sales, for 2014 according to Eastbridge data.
5. Hospital indemnity/supplemental medical
Percentage of total voluntary sales in 2014: 9 percent
Hospital indemnity/supplemental medical had a 9 percent share of total sales and were up 10 percent over 2013. Total sales were about $608 million, up from $552 million in 2013.
Percentage of total voluntary sales in 2014: 12 percent
Accident sales recovered in 2014 after a down year in 2013. The accident line accounted for 12 percent of total voluntary sales and was up 9 percent over 2013 with sales of $848 million.
Percentage of total voluntary sales in 2014: 14 percent
Dental raked in $930 million in sales last year.
Dental insurance is one of the top voluntary products sold by benefits brokers, and nearly a third of employers offer the products, according to Eastbridge.
Percentage of total voluntary sales in 2014: 20 percent
Total disability sales were $1.363 billion for 2014, and accounted for 20 percent of voluntary sales for the year.
It’s down just slightly from last year, when disability accounted for 21 percent of voluntary sales.
Short-term disability sales accounted for 67 percent of the total and were down somewhat compared to 2013, while LTD sales were up by slightly over 3 percent.
1. Life insurance
Percentage of total voluntary sales in 2014: 27 percent
Never underestimate the power of life insurance. As in the past, life insurance again accounted for the highest percentage of total voluntary sales — 27 percent. This line generated $1.877 billion in new sales in 2014. Term accounted for 76 percent of the total life NBAP, 21 percent of total voluntary sales. Both UL/WL and term experienced flat sales compared to 2013.