CASE STUDY
Jack and Sarah are 35 years
old and have two children
They have a mortgage of £180,000 but are
concerned that should something happen to one of
them, this wouldn’t provide the family with enough
financial support to live on.
Based on their lifestyle and early engagement with
Vitality their adviser determines that they’d benefit
from Vitality and together could easily reach Silver
Vitality status – see table 2.2. So that they can get the
level of protection they need he recommends Vitality
Optimiser, advising them to use the savings they can
make to pay for Family Income Cover.
Lifestyle insurance:
not just for when
things go wrong
When it comes to insuring our homes,
most of us take out cover for both the
building and the contents. Why?
Because we know that in the event of a
fire or flood, it’s no good just being able
to fix or re-build the house – we also need
to replace the furniture and personal
possessions that make our house a home.
So why then is it that when we insure
ourselves against death or serious illness,
most of us have just enough cover to pay
off the mortgage and not for the day-to-day
expenses like bills, food and travel that allow
us and our families to live life?
It’s not that people don’t see the need.
In fact our research shows that 86% of
potential protection consumers believe it’s
extremely important to cover expenses
beyond the mortgage1. Not surprisingly
though one of the biggest barriers to actually
doing this is price. So whilst buying contents
insurance on top of buildings insurance is
relatively cheap, buying protection for living
expenses in addition to the mortgage could
mean doubling the cost.
But what if you could offer clients cover
to protect not just their mortgage but their
lifestyle too, and all for the same price as
traditional mortgage protection?
Protect tomorrow. Live today.
When we recently launched Vitality
Optimiser, we didn’t just want to create
another protection product.
Table 2.1
Mortgage
Cover
only
Monthly
Cover beyond the
premium/ mortgage
saving
Life Cover £21.68
We wanted to create a new category
of protection – ‘lifestyle insurance’ – that
doesn’t just protect clients when things go
wrong but helps them to get more out of
life and see the real value of their protection
policy everyday.
Vitality Optimiser gives clients an upfront
discount on their protection premium, and
the ability to control their future premiums
when they engage with Vitality, our healthy
living programme. With plenty of incentives
and rewards on offer, clients can benefit from
the lifestyle choices they make everyday;
from discounted gym membership, to fitness
devices and a free cinema ticket every
week. They can even earn cashback every
year – £50, £75 or £100 depending on their
engagement with Vitality.*
And it’s these savings that means they can
get the right level of protection to pay for
things beyond the mortgage. Whether that’s
an additional amount of Life Cover or perhaps
even Family Income Cover that pays a family
an income in the event of death or serious
illness, it means clients will have the peace
of mind that their family not only have a roof
over their heads, but can make the most of
life if something were to happen to them.
* Cashback and other rewards are available with
Vitality Optimiser for £3 a month. Gym joining
fee will apply, minimum monthly premiums
and futher terms and conditions apply.
Visit pruprotect.co.uk/vitalityrewards
Net cost
£21.68
Life Cover
£21.68
Family Income
Cover
£23.62
Fee for cashback
and rewards
£6.00
Initial premium
discount
£6.60
Use free weekly
cinema ticket
every month
£20.00
Cashback from
engagement to
Silver for both lives2
£8.33
Net cost
For Financial Advisers only.
2. Assumes the couple get to Silver status, and receive £100 cashback for the year.
£16.37
Assumes Essentials plan with 25 year term level Life Cover,
and 20 year term Family Income Cover for death/terminal
illness. Both covers are on a non smoker, joint life basis.
Each person pays £3 a month for rewards and cashback.
Under joint life plans annual cashback earned at Silver
status is £50 per person. Premiums as at January 2014.
How Jack and Sarah get to Silver
Table 2.2
Activity
Online Health Review
FREE
Points
100
Non-smokers declaration
(as part of a Vitality Heathcheck)
300
FREE
Vitality Healthcheck by
roadtohealth (scored well on
four of the major measurements)
480
£15 INTRODUCTORY RATE
Total points earned per person
880
Points shown above are for individuals. To achieve Silver
status under a joint life plan each person covered will
need to earn 800 points.
Find out more
Sources:
1. PruProtect research, Aug 2013. |
Monthly
premium/
saving
Speak to your Business Consultant or visit
pruprotect.co.uk/vitalityrewards