Advice & Resources

Greater value protection with Vitality Optimiser

Term assurance: traditionally, not the most exciting product, but a mainstay of the insurance market nonetheless. Sales are enjoying steady growth (they rose by around 5% year-on-year in 20141) as clients opt for a secure means to protect mortgages with term policies that provide a lump sum benefit in the event of death or serious illness. But at Vitality we believe we can change the market by doing things better, and that means greater potential growth for your business. Introduce Vitality Optimiser to your clients and they can enjoy upfront discounts of up to 25% on their premiums.

WHAT IS VITALITY OPTIMISER?

Vitality Optimiser allows your clients to receive an upfront discount on their protection premiums, meaning they don’t have to wait for something bad to happen in order to benefit from their insurance. The discount is based on the term of the cover, and can be as large as 25%.
Vitality members then have the opportunity to keep their premiums at this level, or reduce them even further by engaging in Vitality. By making simple healthy lifestyle changes – such as tracking the number of steps they take each week – members improve their Vitality status and unlock savings:
• Platinum status: protection premiums decrease by 1%
• Gold status: protection premiums stay the same
• Silver status: protection premiums increase by 1%
• Bronze status: protection premiums increase by 2%.
No other insurer provides clients with this level of control over their premiums while simultaneously helping them improve their health. And the savings don’t stop there. Vitality Optimiser provides clients with access to a huge range of rewards, from 50% off monthly gym membership to savings of up to 40% on British Airways flights to the UK & Europe.

MAXIMISING ENGAGEMENT

Vitality Optimiser enables clients to become healthier and save money on their protection. So at what point would they pay higher premiums with Vitality Optimiser than they would without it?
Let’s take as our example a 45-year-old with 25-year-term cover costing £50 a month without Vitality Optimiser. With Vitality Optimiser, they’d enjoy an upfront discount of 20%, taking their initial monthly premium to £43.30 (£40.00 plus a £3.30 fee for Vitality Optimiser). If they remain at Bronze status, they’ll see their premiums increase by 2% each year. Using our Age Optimiser Calculator, you can demonstrate how – by staying at Bronze status – the client would pay more with Vitality Optimiser from 59 onwards, although they’d still make additional savings with our reward partners.
However, make a small push to Silver – by having an annual health check, for example – and they’d never pay more than the standard premium. And if they reach Platinum status, they’d make a total saving of almost £5,000 over the term of their policy.

KEY POINTS

• Attract new clients with a discount of up to 30% on term assurance premiums
• Vitality Optimiser already gives upfront discounts of up to 25% on term assurance, plus yearly discounts on premiums

SOURCES:
1. http://www.covermagazine.co.uk/cover/news/2408401/protection-market-grows-by-41-swiss-re

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