#USA #Avon #Universal Life #Whole Life Products #Eastbridge Report

Overview of the Current Trends in Permanent Life Insurance

The permanent life insurance market is witnessing a notable shift as voluntary whole life products are increasingly favored over universal life products. This trend was highlighted in a recent report by Eastbridge Consulting Group, titled "Voluntary Whole and Universal Life Products". According to the report, approximately 80% of the surveyed voluntary benefit carriers are now offering whole life products, while only a minority provide universal life options. In monetary terms, whole life insurance sales achieved a remarkable $465 million in 2024, contrasting with the $368 million reported for universal life products.

Understanding Whole Life and Universal Life Products

Whole life insurance is designed to provide lifelong coverage and includes a savings component known as cash value, which grows over time. In contrast, universal life offers more flexibility in premium payments and death benefits but does not always guarantee the same level of cash value growth. The Eastbridge report shed light on the preferences of consumers and employers, signaling a gradual shift towards whole life products due to their predictable nature and internal savings mechanism.

The Emergence of Chronic Illness Benefits

Another intriguing insight from the report indicates a growing focus on benefits associated with chronic illnesses. Senior consultant Danielle Lehman from Eastbridge noted that many of the plans surveyed now offer options for chronic illness benefits, which are often selected by employers to enhance the overall offerings for employees. This indicates a shift in focus, with employers recognizing the importance of addressing health needs that may arise as individuals age.

Trends From the Eastbridge Report

The "Voluntary Whole and Universal Life Products" report surveyed responses from 15 voluntary carriers representing a total of 16 permanent life plans. It delves into various dimensions of the market, covering:

• - Product features and benefits
• - Underwriting guidelines
• - Face amounts and examples of guaranteed cash value
• - Commissions and technology platforms
• - Current challenges and future trends

These insights provide carriers with opportunities to assess their product competitiveness and adjust their strategies accordingly.

The Shift Towards Group Platforms

Interestingly, the report reveals that more carriers are now exploring permanent life products through a group platform rather than focusing solely on individuals. This change can be attributed to lesser regulatory demands and increased adaptability in plan design and underwriting rules concerning group products, making them more enticing for providers.

Added Features in Whole and Universal Life Products

The analysis also highlighted that carriers are adding several options to their whole and universal life insurance products to make them more appealing. Common benefits offered alongside these products include:

• - Accelerated benefits for terminal illnesses
• - Wavier of premium provisions
• - Accidental death coverage

Such offerings enhance the value proposition for insured individuals and are instrumental in attracting more clients.

Conclusion

The findings from Eastbridge Consulting Group’s report underscore the dynamic nature of the permanent life insurance market. The growing preference for whole life products over universal life solutions not only reflects changing consumer preferences but also highlights the evolving landscape of employer-sponsored benefits aimed at addressing a wider range of health-related needs. For insurance companies striving to remain competitive in this shifting market, the insights presented in this report could be invaluable for fine-tuning their offerings and strategies moving forward.

To learn more about these trends, interested parties can purchase the complete report directly from Eastbridge’s official website. For further inquiries, you can reach out to Eastbridge Consulting Group via their contact email.