Colonial Life unveils two new life insurance plans

Nearly 60 million U.S. households say they don’t have enough coverage

COLUMBIA, S.C.--()--Colonial Life & Accident Insurance Company’s newest life insurance products offer America’s employers and their employees more options to protect and preserve what they have worked so hard to build.

The new products include an employer-paid group term life plan and a long-term care benefit rider on whole life insurance policies.

Colonial Life’s new group term life insurance product allows employers to conveniently provide a popular benefit to employees. Term life insurance is an affordable option that can help employees and their families replace lost income in the event of a death and is guaranteed-issue, meaning no health questions for employees. The employer-paid option uses a composite rate structure, which means the same rate for all employees, regardless of age or tobacco use.

The group term life insurance coverage also can be offered on an employee-paid basis and provides options tailored for both large and small accounts. For small accounts, program administration is simple. For larger accounts, employers can customize additional options to fit the needs of their employees.

Life insurance ownership across the United States is at a 50-year low, with only 70 percent of U.S. households owning life insurance coverage, according to LIMRA (2014). And 58 million of those households report they don’t have enough (LIMRA, 2013).

“Life insurance is the one policy everyone needs,” says Steven Johnson, vice president of Product Development for Colonial Life. “We know employees are interested in purchasing life insurance benefits at work, yet only 25 percent of small businesses offer life insurance to their employees (LIMRA, 2014). Our group term life plan offers employers an easy, affordable way to help offset the financial risk for uninsured employees.”

Need for, price of long-term care continue to rise

A growing trend in life insurance is the addition of a long-term care benefit rider. Colonial Life’s new long-term care rider option on a whole life policy can help protect the insured during his or her lifetime by offering a “living benefit” should long-term care become a necessity. The primary purchase of whole life insurance also provides benefits for a beneficiary should the insured die without needing long-term care services.

The rider allows all or part of the death benefit to be advanced for long-term care expenses, including a long-term care facility, assisted living facility, home health care services or adult day care. And these expenses are becoming more prevalent, as Americans are living longer and the cost of long-term care continues to rise.

Consider these staggering facts about long-term care need and prices:

  • The average cost of nursing home care is about $75,000 annually – and is expected to rise (, 2014).
  • At least 70 percent of those 65 and older will need long-term care services at some point in their lives (National Medicare Handbook, 2014).
  • While nearly two-thirds of those surveyed in 2013 said most people need long-term care insurance, only 48 percent of respondents said they need long-term care insurance and only 13 percent said they own long-term care insurance (LIMRA, 2013).

“The combination of whole life and long-term care is especially appealing to baby boomers, who are looking for a way to round out their financial plans for retirement,” Johnson said. “One of the greatest risks to their financial plans is the possibility of a long-term care need because that can directly impact the security of their retirement income and overall portfolio. The guarantees that can accompany a whole life insurance policy help provide peace of mind to consumers, knowing help for this important financial protection is tied to a guaranteed plan.”

About Colonial Life

Colonial Life & Accident Insurance Company is a market leader in providing financial protection benefits through the workplace, including disability, life, accident, cancer, critical illness and hospital confinement insurance. The company’s benefit services and education, innovative enrollment technology and personal service support more than 80,000 businesses and organizations, representing more than 3 million of America’s workers and their families. For more information visit or connect with the company at, and

©2008 Colonial Life & Accident Insurance Company


Colonial Life
Chris Winston, 803-678-6997

Release Summary

Colonial Life launches a new employer-paid group term life insurance plan and a long-term care benefit rider option on whole life insurance.


Colonial Life
Chris Winston, 803-678-6997