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How can a protection plan offer tangible value and what does that look like?
Providing clients with a protection product which becomes part of their daily life helps them see the value of the product. Not only does this help you provide a solution which meets their financial protection needs, it also helps them to improve their health, pay lower premiums (if that plan is Optimised) and allow clients to save hundreds of pounds each year depending on their plan.
Our data indicate that if a client feels like they can’t live without something because of the value they are getting from it daily, they are less likely to cancel it.
Aside from the obvious benefits of better health, the additional value that taking steps to achieve this go beyond this through rewards like cinema tickets, cashback on healthy food, hand-crafted coffees and much more as well as lower premiums through Optimiser.
To put this into context, in 2021, engaged Bronze Vitality Plus members saved 23% of their annual insurance premium on average through rewards. This increased to 62% for Platinum members (those who engage most with their plan).
These savings come from ongoing engagement with their plan and in 2021 Vitality members carried out 378,000 health assessments, 1.2m healthy food purchases from Waitrose & Partners and 815,000 mindfulness sessions as well as 1.7m gym workouts and 60,000 discounted activity trackers. The programme has huge scale now.
Your client can also lower the cost of their premium through Optimiser and keep their premiums lower if they make positive lifestyle choices
Financial advisers will need to work harder to demonstrate value in the current climate
Why does immediate value matter more than ever?
In recent years as we all know we’ve witnessed a pandemic and a series of national lockdowns, however, 2022 has provided its own set of challenges. This year will unfortunately be remembered for the ongoing cost-of-living crisis.
With inflation rising, interest rates increasing and energy prices rising to all-new highs, the current economic situation is no doubt impacting the conversation protection advisers are having with their clients.
You can
watch the interview here
or read his
views below
Recent years have shown us that the unexpected can happen and during times of economic insecurity, having protection in place is more important – not less – even if clients don’t always see it.
Andy Philo, Director of Strategic Partnerships at Vitality, highlights that as people’s budgets become increasingly squeezed, now is the time to offer products that give clients more than peace of mind and deliver tangible value from day one, as well as meet their protection needs.
INTRODUCTION | VIDEO INTERVIEW | PROTECTION | TANGIBLE VALUE | ADVISER BENEFITS
Tangible VALUE
PROTECTION
Video interview
INTRODUCTION
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#04
An
Audience
With
Andy Philo, Director of Strategic Partnerships at Vitality, explores why immediate value in protection matters more than ever during the cost-of-living crisis
Why is offering more than peace of mind so important now?
On one hand, advisers are tasked with encouraging clients to take out enough cover at the most affordable price, while also ensuring clients who do have protection keep it in place
We, as an industry, might fully recognise the benefits of having protection in case someone is diagnosed with an illness or, worse, in the event of death. But this isn’t always as clear to consumers as it is to us. That’s why it’s so important that we deliver value from day one – not only at the point of claim – especially as many clients will be reluctant to commit to new financial obligations or look to cut costs where possible.
We often talk about the peace of mind that having a protection policy in place provides at a time of need. Unfortunately, that’s not always going to be enough for some customers. This means financial advisers will need to work harder to demonstrate value in the current climate.
At the point a client takes out protection, it goes without saying that they see the benefits of having that protection in place. But if we don’t regularly engage with them, any power of the advice that was originally given may subside over time – or might get forgotten completely, particularly as and when finances are put under the microscope.
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How are conversations between advisers and their clients changing as a result?
All this enables advisers to have very different conversations with clients about their budget both at point of sale and throughout the life of the plan. Not only are clients more likely to value it and engage at a time when avoiding cancellations is a priority, advisers are able to help them to support their lifestyle while providing solutions to meet their needs.
Your client can also lower the cost of their premium through Optimiser and keep their premiums lower if they make positive lifestyle choices, giving them even more reason to take steps to improve their health and get more immediate value from their plan.
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INTRODUCTION | VIDEO INTERVIEW | NEW CONSUMER DUTY | STEPS TO PREPARE | BENEFITS FOR CLIENTS | MEETING REQUIREMENTS
MEETING REQUIREMENTS
BENEFITS FOR CLIENTS
STEPS TO PREPARe
NEW CONSUMER DUTY
Video interview
INTRODUCTION
How can advisers benefit from this?
At Vitality, our data show that members who are engaged in the Vitality Programme are, on average, not only healthier, but more likely to live longer as a result. They’re also less likely to lapse their plan.
More engaged clients are also more likely to participate in annual reviews. Not only does this ensure their plan is kept up to date but also enables advisers to benefit from additional sales opportunities, as well as building relationships.
With protection insurance offerings evolving, financial advice has needed to become less transactional, and this has paved the way for longer and more loyal client relationships which often leads to referrals to family and friends. Meaningful client relationships have always been built over time and this is truer now, more than ever.
Recent years have shown us all that the unexpected can happen – and this can be a very strong proof point for clients.
During times of economic insecurity, having protection in place is more important (not less important), even if clients don’t always see it.
We firmly believe that clients are more likely to take out policies – and keep them in place – if they see tangible value
in them.
Clients are more aware of their vulnerability these days –
both physically and financially – but they might just need reminding. This could be what stops them from leaving themselves exposed at the worst possible time.
Recent years have shown us all that the unexpected can happen – and this can be a very strong proof point for clients
INTRODUCTION | VIDEO INTERVIEW | PROTECTION | TANGIBLE VALUE | ADVISER BENEFITS
MEETING REQUIREMENTS
ADVISER BENEFITS
Tangible VALUE
PROTECTION
Video interview
INTRODUCTION
1
1 Source: Vitality Claims & Benefits report 2022.
2
2 Source: Vitality Claims & Benefits report 2022.
1
How are conversations between advisers and their clients changing as a result?
All this enables advisers to have very different conversations with clients about their budget both at point of sale and throughout the life of the plan. Not only are clients more likely to value it and engage at a time when avoiding cancellations is a priority, advisers are able to help them to support their lifestyle while providing solutions to meet their needs.
Your client can also lower the cost of their premium through Optimiser and keep their premiums lower if they make positive lifestyle choices, giving them even more reason to take steps to improve their health and get more immediate value from their plan.
Recent years have shown us all that the unexpected can happen – and this can be a very strong proof point for clients
At Vitality, our data show that members who are engaged in the Vitality Programme are, on average, not only healthier, but more likely to live longer as a result. They’re also less likely to lapse their plan.
More engaged clients are also more likely to participate in annual reviews. Not only does this ensure their plan is kept up to date but also enables advisers to benefit from additional sales opportunities, as well as building relationships.
With protection insurance offerings evolving, financial advice has needed to become less transactional, and this has paved the way for longer and more loyal client relationships which often leads to referrals to family and friends. Meaningful client relationships have always been built over time and this is truer now, more than ever.
2 Source: Vitality Claims & Benefits report 2022.
2
1
1
1 Source: Vitality Claims & Benefits report 2022.