Today (25 February) SunLife has announced its most successful start to the year in life insurance for those aged 50 plus for more than five years.
According to the provider, sales were up 12 per cent in the first six weeks of the year compared with the first six weeks of the year for the previous five years.
Managing director Dean Lamble said: “Our customers crave straightforwardness. A simple product that doesn’t try to confuse them with esoteric features, clear benefits, no jargon and a simplified customer journey.
“It is what customer research says over and over again: customers think financial services brands often make their products too complicated.”
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Robert Lewis, director at Heritage Financial Solutions, said he would agree clients crave a straight forward product that is easy to understand.
Mr Lewis said: “I believe guaranteed over 50s plans can be a great product, namely because it provides provision for funeral expenses, which many have not catered for.
“To caveat that, it is important to ensure clients understand the sum assured now won’t have the same purchasing power as it will have in the future, inflation being the cause.
“However, I strongly believe in some cover rather than no cover and this is a positive step towards that.
“That said my main fear with these products is that for a healthy individual with no medical issues they are essentially paying for someone else’s early payout, making their plan more expensive.
“In this case some simple underwriting may enable them to get cheaper cover elsewhere. Not sure how clear this is in the marketing.”
ruth.gillbe@ft.com
