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.
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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.
4. Accident
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.
3. Dental
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.
2. Disability
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 2012. 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.
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