In my last article, I showed you how whole life insurance is one of the 3 ways you can affordably leave your child a cash inheritance.
(In our example a 35 year old could leave £150,000 cash inheritance for £65 a month.)
And now I want to show you how, if you’re an active parent you can now get an extra 40% off your premium.
I’ll show you what I mean by ‘active’ in a minute.
But first let me address the obvious question…
Why would an insurer give anyone 40% off?
The easiest way to explain is with an example.
Jill and Sue are exactly the same age. They both buy the same whole of life insurance policy and they both pay exactly the same premium every month. As the premiums are fixed they will continue to pay the same premium for the duration of the policy.
That’s how traditional insurance works. It’s priced when you apply for the policy. And no matter what happens after, the price won’t change.
However, this is where it get’s problematic.
Fast-forward 15 years, due to Jill’s lifestyle, she has become obese and unfortunately has developed some ongoing health issues.
Her doctor has told her that her that if she doesn’t start eating healthier and being more active it’s likely her health will deteriorate even more.
Despite her doctor’s warnings, Jill hasn’t yet acted on this advice and her health continues to suffer.
Sue on the other hand has no serious health issues.
She’s maintained her weight and walking with her kids and their dogs every day over the year’s means she’s been consistently active too.
But here’s the difference.
Even though Sue is in good health and less of a risk to the insurance company than Jill, both women still pay the same premium for their insurance.
The problem with traditional insurance
It’s a well-known fact that those of us who are active and healthy are less likely to get sick and more likely to live a longer life.
But if we live longer, we also pay more for whole of life insurance over our lifetime!
Traditional insurance doesn’t address this fact and as a consequence it’s unfair.
Prices based only on statistics like ‘average life expectancy’ at the time of application, make it impossible to account for our individual lifestyle choices in the future.
The best insurance for an active family
Fortunately, due to developments in technology, one insurer, Vitality, has figured out a way to solve the problem of ‘one-size-fits-all’ pricing.
They’ve called it ‘Vitality Optimiser’ and here’s how it works.
If you chose to have Vitality Optimiser and continue to live a healthy and active life Vitality will:
Give you 40% off your whole of life premiums.
Reward you with yearly Cashback.
Reward you with regular incentives like cinema tickets.
Let you control the premiums throughout your policy.
In affect by incentivising certain activities that lead to more healthy customers (who live longer lives) – they’re recognizing and re-enforcing healthy behaviour.
So it’s an ongoing cycle that leads to more healthy, happier and ultimately longer living members!
And of course the real benefits to us are, we’re less likely to get a serious illness and more likely to live a longer and healthier life.
And being parents ourselves, we REALLY understand the importance of being healthy and there for our kids and grandkids long into the future.
Plus, from a money perspective, the discounts and incentives add up to some serious monthly savings.
So it’s a genuine win-win!
Pretty good, don’t you agree?
Who is this not for?
Of course this isn’t for everyone. If you don’t engage with Vitality your premiums will rise over time and you could end up paying more for your cover.
For that reason, Vitality Optimiser isn’t for certain people:
If you don’t currently live an active lifestyle or have no intention to start, this type of insurance probably isn’t for you.
If you wouldn’t go and get your vital numbers checked, like blood pressure, BMI and cholesterol, then this type of insurance probably isn’t for you.
If you’re completely technology adverse, don’t really use email or do much online and have no idea what a phone app is, then this type of insurance probably isn’t for you.
Who will benefit most from this?
If you are a busy and active parent and would like regular rewards like cinema tickets and Starbucks for being busy and active, this could be for you.
If you’d like to set a good example to your kids and instill some healthy living habits, then this could be for you.
If you like to have control in your life and appreciate a deep discount, then this is for you.
If you regularly use email, Internet and are familiar with phone apps or wearable tech like a Fitbit, then this insurance is for you.
So what’s with the 40% discount?
Assuming you’re going to engage with activities that’ll make you live healthier and longer, Vitality Optimiser will give you 40% up front discount off your whole of life monthly premium.
Here’s two examples compared to other insurers before and after the optimiser discount:
Before the 40% whole life insurance discount:
|Insurer||Cover Amount||Monthly Premium|
|Legal & General||£150,000||£135.05|
After the 40% whole life insurance discount:
|Insurer||Cover Amount||Monthly Premium|
|Legal & General||£150,000||£135.05|
Note: By selecting Optimiser there is a £3.30 monthly fee that Vitality charge to run the rewards scheme. It’s added onto your monthly premium and activates the 40% discount, rewards and cash back. Non-smoker rates correct as of May 2016.
By choosing optimiser you’re affectively agreeing to engage with Vitality so the good news is, in addition to the 40% discount, you also get to control your premiums in the future.
Your premium will either:
Remain the same (if you engage).
Gradually decrease (if you really engage).
Gradually increase (if you don’t engage).
The aim is that you retain the lower premium. There are different statuses you can achieve each year; Bronze, Silver, Gold & Platinum.
You start on Bronze and if you reach Gold or Platinum your price will either stay the same or get cheaper. If you remain on Bronze or Silver your premium will increase slightly each year.
The big idea is to achieve at least Gold every year to maintain the low premium.
Ideally, as Emily and I have done, you’ll get to Platinum and get a further 1.5% discount off your premium each year, plus £100 cash back.
How easy is it to earn points and rewards?
It’s really not difficult if you just do a few things.
Personally I enjoy exercise and do so 3-5 times a week.
Last year was my first year with Vitality and I’ve had no problem in getting to Platinum by doing 4 things:
Completing an online health questionnaire
Getting a health check at my local Lloyds pharmacy
Wearing a Polar heart rate monitor when I exercise
Going to the dentist for an annual check-up
Although I do also complete the occasional Park Run on a Saturday morning, which is 1 way to earn a weekly cinema ticket and Starbucks. And Morgan my 4-year-old boy, loves to come along too so it’s something we can both enjoy.
In fact here’s Morgan collecting his very own Half Marathon wrist band at our local junior Park Run recently.
As of writing this I’m approaching my second year with Vitality and have retained my Platinum status for my second year, still with 4 months left until my policy anniversary.
It was easier for me this year because Vitality carry over 10% of your points from the previous year. And because you’re not starting from zero, it will get easier as the years go on.
So like last year, I’ll get £100 cash back paid into my bank on my policy anniversary in September and a further 1.5% off my premium.
Pretty cool I think.
So that’s me.
But what if I don’t exercise?
Emily my fiancé also has a Vitality policy but when I first mentioned this to her she said;
“Well it’s ok for you because you exercise, but I don’t exercise or have the time. How’s it any good for me?”
Perfectly good point!
But because Vitality allow you to use your steps clocked up using a Fitbit (one of the accepted devices you link to Vitality to earn the points and cash back) she earns virtually all her points from her steps.
We weren’t sure how she’d get on with it at first, but went ahead anyway and after 1 or 2 months of her getting used to it she now loves it.
Lack of time is not a problem
She wears the Fitbit like a watch so finds it easy. She doesn’t wear it all of the time, but all she needs to do is remember to wear it from time-to-time when she’s walking Morgan to school or looking after our youngest son Calum at home during the day.
Are you a parent with a younger child?
If so, I bet you’d be surprised at how active you actually are.
As Emily has shown, with the constant tidying up, putting away Calum’s and Morgan’s toys, walking up and down the stairs and doing the school run etc she’s far more active than me during the day.
If this sounds familiar, I think you’ll be amazed at how active you are too.
Who needs a gym when you have young children!
How can I find out more?
I hope I’ve done a good job of laying out all the benefits of creating a £150,000 inheritance for your child. Plus, how you can benefit from the activity or exercise that you may be doing already!
I hope showing you how Emily and I do this has given you something interesting to talk to your partner or friend about?
I believe that if you’re an active parent who wants to create an amazing inheritance for your child (which also protects them while they’re younger), then Vitality Optimiser may be an option worth exploring.
If you’d like further information feel free to request a call here.
After the call you’ll get your own personalised quotes PLUS an estimation of your monthly savings with the rewards and cash back offered by Vitality.
Next week I’ll be going through another powerful option that can be applied to your Vitality policy that could get you a further discount on your premiums of 67%.
So until next time…