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
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