Insurance Watch: Raise awareness of ‘living benefits’

disply ad 1:

Steep living costs are prompting many people to make cutbacks, with some considering cancelling protection policies to keep outgoings to a minimum.

As advisers, we know just how important protection is. Yet, when times are tough, there’s a risk that consumers will start to regard critical-illness cover, income protection and life insurance as more a luxury than a necessity.

Often these services are for partners and children too

Sadly, it’s only when policyholders experience a life-changing event, such as diagnosis of a serious illness or, worse, a death in the family, that they realise what a lifeline cover can provide.

However, many will be unaware that their cover often comes with a range of additional services they can use, even if a claim is never made.

For those thinking of going without cover, are they aware of these benefits? Could they squeeze more value from a policy that otherwise might not give a return unless a claim was made?

The benefits will vary depending on the policy and the provider, but it’s well worth highlighting to customers exactly what is available and how it could help them.

Some providers reward customers who exercise regularly or lead healthy lifestyles

Some of the most valuable benefits offered are those that enable policyholders to beat often lengthy National Health Service (NHS) queues for treatment or advice. According to RedArc, the nurse-led support organisation, many of the referrals made last year were due not solely to an increase in cases but also to the impact of longer waiting lists for treatment.

GP services

Most protection providers offer policyholders access to remote GP services or private prescription services. Given how difficult it can be to get an NHS appointment these days, and the lengthy delays many people face in obtaining the treatment they need, being able to access potentially same-day appointments and prescription services could be vital.

Often these services are offered not just to the policyholder but to their partner and children too. AIG, for example, gives all customers, their partners and children up to the age of 21 access to its ‘Smart Health’ app. This offers a suite of six services including on-demand consultations with UK-registered GPs and second medical opinions from some of the world’s top specialists.

Could clients squeeze more value from a policy that otherwise might not give a return unless a claim was made?

Scottish Widows similarly offers policyholders the ‘Clinic in a Pocket’ app, which gives them and their immediate families access to GP services and free repeat-prescription delivery; while Guardian’s ‘Anytime’ support for policyholders provides free 24/7 access to a GP and a second medical opinion if needed.

Physiotherapy

Policyholders may find their cover provides them with access to physiotherapy, helping them get back on their feet — in some cases literally — if their movement has been affected by injury, illness or disability. Even if physio appointments are virtual or limited in number, they can play a vital role in helping people to keep active and to avoid NHS waiting lists.

When times are tight it’s all the more crucial to highlight these additional benefits

Providers that offer physio as a benefit include LV=, which gives policyholders and their spouse/partner access to up to five free sessions a year with a trained UK physiotherapist; and Royal London, which offers a ‘Track Active’ app to help users improve their physical health. This can provide policyholders with a likely diagnosis of their problem, along with educational videos on how to reduce their pain and recover.

Counselling services

There’s been a huge rise in demand for mental health support services following the pandemic, with many people reporting lengthy delays. The majority of protection providers offer policyholder mental health support. This may come in the form of counselling sessions, support groups, or helplines where policyholders can speak confidentially about their issues.

We can help customers make their premiums work harder

With the NHS under pressure, these services can provide a vital lifeline — yet many people don’t even realise they have this access.

Rewards for staying healthy

As an alternative value-add, some providers reward customers who exercise regularly or lead healthy lifestyles. Vitality, for example, offers perks to policyholders who rack up ‘activity points’ when they exercise, including free cinema tickets or coffees, and travel discounts, as well as many other treats and discounts that could be a real help when budgets are restricted.

Many policyholders will be unaware that their cover often comes with a range of additional services

When times are tight it’s all the more crucial to highlight these additional benefits. We can help customers make their premiums work harder by encouraging them to use these ‘living benefits’, while at the same time reminding them of the invaluable protection their policies provide if they do need to claim.

Edward Jones is protection advice director at L&C Mortgages

This article featured in the February 2023 edition of MS.

If you would like to subscribe to the monthly print or digital magazine, please click here.