Voluntary accidental death and dismemberment coverage received the highest rating (43%) from leading carriers selecting it as a ‘very profitable’ product line, according to The Frontline Report, Worksite/Voluntary Product Trends 2012.

Respondents ranked universal life/whole life second (41%) followed by term life (26%) when asked to rate their voluntary products in terms of profitability in the report conducted by Avon, Conn.-based Eastbridge Consulting Group.

“Although these products received the highest percentage rating them as very profitable, most carriers surveyed actually classified their products as having average profitability,” says Eastbridge VP Bonnie Brazzell.

She adds that fewer companies ranked any product as ‘very profitable’ this year.

“This year saw major swings in several lines; as an example fewer companies chose long-term disability, cancer, and hospital indemnity as very profitable causing them to fall out of the list of very profitable products,” says Gil Lowerre, Eastbridge president.

Meanwhile the report shows that voluntary products rated most frequently as ‘unprofitable’ were dental, vision, and critical illness insurance.

“This is somewhat surprising considering that critical illness was ranked first by the survey respondents in terms of growth products in the next two to three years. What’s more, both dental and critical illness had the highest growth rate (22 and 20% respectively) this past year,” says Lowerre.

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