However, examining life-only statistics, while term sales increased in 2006 by more than 13 percent, universal life and whole life sales decreased by 3 percent. That trend continued through the first quarter of this year. LIMRA's first-quarter survey of 22 voluntary permanent life carriers showed an 8.6 percent decline in sales versus 2006 figures. So what explains the plunge in sales of a product most employees know they need? Theories abound, but here are a couple that seem to make sense:

More benefits are being offered. The voluntary benefits marketplace has become more of a shopping mall for employees. With more choices and limited discretionary dollars, employees tend to choose the products that offer more immediate payoff. The good news, according to Lowerre: 65 percent of employees own at least one voluntary product, up from 40 percent in 2002. The bad news, from a life perspective: only 26 percent own a voluntary life product, and most of those choose term.
Changing enrollment methodologies. As more large employers move toward a self-serve, Web-based enrollment system, their employees tend to select products with more sizzle. What was true in 1985 remains true today: permanent life insurance is sold, not bought.

Considering the statistics and the changing worksite product and enrollment landscape, one might conclude that a need for voluntary permanent life insurance no longer exists. Nothing could be further from the truth. Ponder these LIMRA statistics:

More than half of U.S. households have only the group term their employer provides.
More than 75 percent of all death benefits paid are from individually owned policies.
More than 90 percent of term life, either individually owned or group, expires without paying a death benefit.

What do these numbers tell us? The answer is obvious: While term insurance is a very cost-effective way to protect a wage-earner's family from unexpected death, most of the time, it's not in force when the insured dies. Yet many families depend totally on employer-paid group term for their life insurance protection.

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Making the case for voluntary permanent life

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