Workplace life insurance, disability insurance, and supplemental health sales showed growth in 2024, setting a record year according to the 2024 workplace benefits sales survey by LIMRA. New premium for workplace life insurance rose by 10% year over year to $925 million in the last quarter, marking the fifth consecutive quarter of increase. Despite a 1% drop in employer groups selling life insurance, participation grew by 9%.

Term products, which represent more than 80% of workplace life insurance sales, saw a 13% growth in new premium compared to Q4 of 2023. In contrast, the new premium for permanent products fell 1% over the same period. Workplace life insurance new premium summed to $4.5 billion in 2024, up 8% from the previous year’s premium.

In 2024, businesses continued to strengthen their workplace benefits programs to attract and retain talent in a competitive job market. Patrick Leary, the Corporate Vice President and Head of LIMRA workplace benefits research, shared that 7 in 10 carriers reported a year-over-year increase in sales.

Disability insurance new premium grew 12% to land at $1.1 billion in Q4, with short-term and long-term disability premiums increasing by 6% and 20%, respectively. The top 10 companies, accounting for 75% of total new disability insurance premium, witnessed an overall 3% gain in the last year. Though new premium for short-term disability insurance fell 3%, that for long-term disability insurance improved 7%, shedding positive light on the year-long performance.

On the other hand, supplemental health product new premium totaled to $686 million in the last quarter of 2024, recording a 2% year-over-year decrease. Regardless, robust performance earlier in the year kept the full-year sales positive, concluding with an 8% growth to $3.3 billion.

Conclusively, the ongoing year-over-year growth in the workplace benefits sales sector demonstrates businesses’ dedication to enhancing their benefits packages, thus, retaining talented employees in a notably rigorous labor market. Navigating the market and understanding such trends is essential for businesses and their advisors. If you have more questions about workplace benefits and related programs, eddcaller.com can help guide you to the right resources such as contacting SDI or accessing PFL. They also provide information on contacting EDD for questions about workplace benefits or unemployment.