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Benefits July 24, 2003
Worksite Disability Policy Sales Pull Ahead in 2002
July 24, 2003 (PLANSPONSOR.com) - Disability
insurance coverage sales in the workplace bested that for
life insurance policies for the first time last year,
according to a consulting firm.
Reported by Fred Schneyer
The latest US Worksite Study from the Avon, Connecticut-based Eastbridge Consulting Group showed that disability sales were 24% of total worksite sales, while life insurance sales accounted for 22%.
According to the study, 2002 disability sales were up 35% over the year before while life insurance sales were up 15% year over year. “Disability insurance sales have been growing at a faster pace than life sales for the past few years and now have finally taken the top share of the total worksite sales,” said Eastbridge vice president Bonnie Brazzell in a statement.
Hospital indemnity and medical supplement plans also showed strong growth in 2002. This line of business grew sales at a 33% over 2001. Long-term care insurance sales slowed somewhat in 2002 compared to 2001 with a 12% growth rate (compared to a 77%-increase in 2001).
The study tracked 58 worksite marketing carriers, representing over 80% of the estimated $4 billion worksite sales volume for 2002.