Growing market for voluntary insurance products
A recent report by Breeze breaks down which products are buying and how much they're spending.
Just three insurance products — health, life and dental — have an ownership rate of more than 50%. Although it’s only logical for brokers to focus their efforts in these areas, there also is a large and growing market for voluntary insurance.
Breeze, which markets a variety of insurance products, recently took the pulse of the voluntary market. Not surprisingly, it found that 82% of respondents own health insurance, followed by life (64%) and dental (53%). Although 84% of white respondents own health insurance, only 68% of black respondents do. Far more males than females are likely to own voluntary policies of all types.
Related: The future state of technology in the voluntary benefits space
This is what the survey found about specific voluntary products:
Long-term disability is a form of income protection meant to cover serious injuries and illnesses that keep someone out of work for more than three months. It also covers permanent disabilities that make returning to work impossible. Thirty-two percent (42% of men and one-quarter of women) own a policy, with an average monthly premium of $120.
Short-term disability insurance replaces a percentage of a policyholder’s income, usually between 35% and 75%, if he or she experiences a temporary injury or illness that keeps them from working. Benefits usually last between three and six months, but some can be longer than a year. It is not as common as long-term disability insurance, with 27% owning a policy and paying an average of $87 monthly.
Critical illness insurance provides a cash benefit if a policyholder experiences a covered illness, such as cancer or a heart attack. Twenty-three percent of respondents own a policy and pay an average of $133 a month.
Pet insurance, one of the hottest voluntary products going right now, covers an animal in the event of injury or illness. Nearly three-fourths of respondents are pet owners, and 28% of them have their pet insured. The average monthly premium is $49.
Renters insurance provides a safety net for a tenant’s property in the event of damage, theft or accident. Forty-four of respondents indicated they currently are renting an apartment or home. Half of these have insurance, with an average monthly premium of $27.
Dental insurance is one of the most common employee benefits. Fifty-three percent of respondents own a policy, and the average premium is $27.
Vision insurance is less common than dental insurance. Forty-four percent own a policy, for which they pay about $12 a month.
Flood insurance protects against property loss from flooding. Costs vary greatly by geography. About a quarter of respondents live in areas prone to flooding. Half of them have insurance, for which they pay an average of $65 a month.
Umbrella insurance serves as a catch-all to cover excess losses not covered by another type of insurance policy. Only 18% own a policy, with an average monthly premium of $56.
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