Greater value for less

Getting more quality for less cost is a value seeker’s mantra. So why should people’s approach to insurance be any different?

Financial advisers are in the business of offering their clients the best value when it comes to making a recommendation, a balance of quality versus cost.

But when it comes to protection insurance, it can be a more difficult sell. Therefore, a way to kick-start a conversation with clients is by offering a helping hand, and an incentive to get more for your money and act sooner rather than later is an added bonus.

People think protection is more expensive than is actually the case

This is why we have launched an incentive that gives people the cover they need for less.

Most protection conversations start with life cover, so we’re giving advisers the opportunity to access term assurance for a lower premium, with the incentive to offer clients additional benefits with the saving - giving them more cover for less.

We know clients can be forced to make compromises on their level of cover due to budget, so by reducing our term life cover premiums we hope that it gives people a reason to take a greater level of cover.

We also know as an industry that people think protection is more expensive than is actually the case, and this offer gives an added opportunity to prove the value that can be offered for a relatively low premium.

For example, if a non-smoker paid £10 per month for a 25 year level term life policy with VitalityLife, at age 30 they’d receive £187,526 worth of life cover, but through our incentive to give more life cover for the same premium, that original £10 premium will now give £217,689 worth of life cover.

That additional sum will make a considerable difference to clients if a claim is made.

The value on offer goes further than that though. For an additional £10 per month, giving a total monthly premium of £20, a customer could add £1,000 per month Income Protection benefit with Vitality Optimiser. This would give them access to many additional benefits such as gym discounts and a weekly free coffee.

Not only can people get more cover for less, but with VitalityLife they can also access a host of benefits through Vitality Optimiser, that rewards people for living a healthy life.

Members can get annual premium discounts and cashback, of which we’ve paid over half a million pounds to members so far. Through our protection policies we’ve seen high engagement with Vitality Optimiser, as it gives people a tangible benefit from their cover – from day one.

To help people be more active and stay healthy, members get discounts on gym membership, trainers, as well as wearable devices such as Garmins.

As a reward for taking part in healthy activity, members then get benefits such as a weekly Starbucks coffee, cinema tickets and travel vouchers, and further discounts on their protection premiums.

It’s a virtuous circle, people stay healthier so they pay less for their cover. It’s good for the client, good for the insurer and good for society.

So there’s never been a better time to talk to clients about protection. People can get the life cover they need for less, and become more active in the process.

We hope advisers will see it, and use it, as an opportunity to open the door to talk about other protection products that might be needed, such as serious illness cover and income protection. Better value life insurance can be the gateway to greater financial protection.

Justin Taurog, managing director of distribution at VitalityLife