Washington National Launches Individual Term Life Insurance Product

Rhea-AI Summary

Washington National Insurance Company has launched a new Individual Term Life Insurance (ITL) product aimed at addressing the financial protection gap among middle-income Americans. The product offers death benefits ranging from $25,000 to $250,000 with term options of 10, 20, and 30 years. Key features include three built-in riders: Accidental Death Benefit, Terminal Illness Accelerated Death Benefit, and Waiver of Premium Benefit. Optional riders include a Return of Premium Endowment Rider offering up to 50% premium returns and a Children's Level Term Insurance Rider with coverage options from $5,000-10,000. The launch addresses a critical need, as only 31% of workers earning less than $50,000 annually have life insurance coverage. The product emphasizes affordability, flexibility, and guaranteed premium rates throughout the term.

Positive

• Product targets underserved market segment with low insurance penetration (only 31% coverage among workers earning under $50,000)
• Flexible coverage options with death benefits from $25,000 to $250,000
• Includes three valuable built-in riders at no additional cost
• Optional Return of Premium rider offers up to 50% premium return for 20- and 30-year policies
• Guaranteed premium rates for the entire term duration

Negative

• None.

Insights

Insurance Industry Analyst

Washington National's new term life product targets underserved middle-income Americans, potentially expanding CNO's market reach in a segment with low insurance penetration.

Washington National's launch of Individual Term Life Insurance (ITL) represents a strategic move to address a significant market gap. With only 31% of workers earning below $50,000 annually having life insurance coverage, the company is targeting a substantially underserved demographic.

The product design shows careful market positioning with death benefits ranging from $25,000 to $250,000 and flexible term options of 10, 20, and 30 years. This structure aligns well with middle-income needs while keeping premiums accessible. The inclusion of three standard riders at no additional cost enhances the value proposition, particularly the Terminal Illness Accelerated Death Benefit Rider which addresses end-of-life financial concerns.

Most notable is the optional Return of Premium Endowment Rider, allowing policyholders to recoup up to 50% of eligible premiums at term end for 20 and 30-year policies. This feature typically appeals to price-sensitive consumers who might otherwise hesitate to purchase life insurance, effectively reducing the perceived "use it or lose it" barrier common in term products.

For CNO Financial, this product launch represents an opportunity to expand their market share in an underserved segment where competition may be less intense than in higher-income brackets. The simplified offering with guaranteed rates could strengthen Washington National's position in the middle-income insurance market, potentially driving incremental growth in their life insurance business line.

A solution to bridge the financial protection gap for underserved workers and families

CARMEL, Ind., June 23, 2025 /PRNewswire/ -- Washington National Insurance Company, a national provider of supplemental health and life insurance products for middle-income Americans, has introduced today its new Individual Term Life Insurance (ITL). This product is an easy-to-understand solution designed to help underserved workers and families achieve financial security, offering key benefits such as the option to receive money back through an optional rider.

"Life insurance ownership rates remain alarmingly low among workers earning less than $50,000 annually, with only 31% reporting they have coverage¹," said Richard Shaffer, senior vice president of Worksite Sales. "This highlights a significant gap in financial protection among lower-income groups, underscoring the need for accessible and affordable life insurance solutions. Our Individual Term Life Insurance is specifically designed to close these gaps and provide affordable financial protection for families who need it most."

With death benefit options ranging from $25,000 to $250,000, this product is designed to make the life insurance process straightforward while providing essential features:

• Extensive coverage with flexibility: The product offers a wide range of face amounts with term options of 10, 20 and 30 years.
• Includes three valuable riders for enhanced protection: The base policy includes an Accidental Death Benefit Rider, a Terminal Illness Accelerated Death Benefit Rider and a Waiver of Premium Benefit Rider.
• Optional riders for extra benefits:
  • Return of Premium Endowment Rider: Receive up to 50% of eligible premiums back at the end of the term for 20- and 30-year policies.
  • Children's Level Term Insurance Rider: Coverage options are available from $5,000-10,000. Plus, add eligible children to this rider coverage without raising premium.
• Guaranteed rates: Premium rates are guaranteed for the duration of the term.

"With flexible term and death benefit options, and built-in riders for added protection at an affordable price, this product addresses the financial protection needs of individuals and families—ensuring they can secure coverage that fits their budgets and aligns with their unique life stages," added Shaffer.

For more information about Individual Term Life Insurance, visit www.WashingtonNational.com.

About Washington National Insurance Company
Washington National Insurance Company, part of the CNO Financial Group (NYSE: CNO) family of brands, has helped Americans since 1911 to protect themselves and their families from the financial hardship that often comes with critical illness, accidents or loss of life. The company's supplemental health and life insurance products are designed to help give policyholders and their loved ones' peace of mind. Policyholders can depend on Washington National to be a strong, caring partner in helping to provide financial security for them and their families. To learn more, visit WashingtonNational.com.

¹ LIMRA 2024 Insurance Barometer Study.

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SOURCE Washington National Insurance Company

FAQ

What are the key features of Washington National's new Individual Term Life Insurance product?

The product offers death benefits from $25,000 to $250,000, term options of 10-30 years, three built-in riders (Accidental Death, Terminal Illness, and Waiver of Premium), and optional riders including Return of Premium and Children's Term Insurance.

What term options are available for CNO's new Individual Term Life Insurance?

The product offers term options of 10, 20, and 30 years with guaranteed premium rates for the duration of the term.

How much money can be returned through the Return of Premium rider?

The Return of Premium Endowment Rider offers up to 50% of eligible premiums back at the end of the term for 20- and 30-year policies.

What is the coverage range for the Children's Level Term Insurance Rider?

The Children's Level Term Insurance Rider offers coverage options ranging from $5,000 to $10,000, with the ability to add eligible children without raising premiums.

What percentage of workers earning less than $50,000 annually have life insurance coverage?

According to the press release, only 31% of workers earning less than $50,000 annually report having life insurance coverage.