This is a worthwhile read for any mum considering mums life insurance.
30-year-old Annabel is married with a four-year-old daughter. She’s shortly expecting baby number two and is currently on maternity leave from her £28,000 job as a restaurant manager.
After the birth of little Rosie, Annabel did consider life insurance, but just didn’t get around to sorting it out. But after discovering she was pregnant with her second child she felt more urgency to tick life insurance off the list – just in case.
In particular, Annabel felt more aware of the financial struggles that would descend on her family should she or her husband become seriously ill – or worse.
And while insurance is no cure for the emotional pain resulting from serious illness or bereavement, she knew cash would ease the financial burden.
Regarding cover, Annabel was keen to cover her £180,000 mortgage (which has a 25-year term) and her £7,000 in debts. She also wanted to create a buffer so her husband would have a cash lump sum available to provide for their daughter and new baby.
Annabel was also concerned about the financial stress her family would suffer if she became ill and unable to work. She was concerned what could happen if her daughter became seriously ill and she needed time off work to care for her. As a result, Annabel was keen to buy serious illness cover (SIC) for her and children’s serious illness cover (CSIC) for Rosie – as well as insuring her life.
What did Annabel buy?
• £250,000 Life Cover, 25 Year Term – this sum would cover her mortgage of £180,000, debts of £7,000, and create an additional cash sum should she die within the term and while her children were still dependent on her.
• £125,000 Serious Illness Cover, 25 Year Term – if Annabel were to be diagnosed with a serious illness during the term, this cash could be paid to her and is equal to around four-and-a-half years worth of her salary.
Annabel could use this cash exactly as she chooses; for example some of this money could be used to pay for private treatment not available on the NHS. Meaning a better chance of a full and fast recovery. Or she could simply use it to replaced lost income, which could be used to help pay the mortgage and bills.
• £25,000 Children’s Serious Illness Cover – with this in place, Annabel has the peace of mind that should her daughter become seriously ill, she could take a year off work to be by her child’s side and not have to worry about not being in work and paying the bills at this most stressful time.
(Note: Her husband could also take out insurance (and this would also be recommended), but CSIC would only need to be on one parents’ policy.)
Here are Annabel’s quote details:
• £250,000 Life Cover: £10.34
• £125,000 Serious Illness Cover: £19.52
• £25,000 Children’s Serious Illness Cover: £2.48
• Vitality Optimiser Fee: £3.30
Total Premium: £35.64 a month
The small print: Based on single life policy. Vitality Life Essentials Plan. Children’s serious illness cover premium includes a £1 Vitality fee. Correct at November 2015.
Here’s how Vitality saves her £17.25 a month
When you consider the peace of mind that Annabel’s cover provides, the £35.64 premium is a small cost to pay.
But here’s the interesting part; because Vitality rewards and incentives its members to lead a healthy and active life; Annabel easily saves more than she pays each month.
What’s more, contrary to what some people may think, it’s easy to be active…
For example, Annabel wears a FitBug that tracks her steps. On her days off she says she achieves around 6-7,000 steps but because she’s on her feet so much with her job she says that easily increases to around 17,000 steps during a typical day.
This is well beyond the steps required to earn her free rewards …
Check out these weekly rewards she enjoys:
1. Two free cinema tickets each week
Annabel and Rosie get a free cinema every week. Although she doesn’t go every week, she does go to the cinema twice a month with Rosie. Assuming she does the required steps in that week, this treat is FREE saving Annabel £26 per month. (£8 adult ticket and £5 for children).
(Note: Once Annabel achieves Gold status she’s already put in the hard work, so she doesn’t need to do the required steps each week – members receive the weekly rewards automatically)
2. Free Starbucks’ each week
Annabel likes to treat herself to a ‘Venti Caramel Macchiato’ each week. Vitality rewards you with a free Starbucks drink every week. That’s any hand crafted drink of any size! So if you don’t like coffee or tea you may like to treat yourself to a hot chocolate, fresh juice, frappuchino or anything else you fancy. The Venti Caramel Macchiato normally costs £3.65 so having a free one each week saves Annabel around £14.60 a month. Not to bad!
Here are some more yearly rewards:
1. Half price trainers
Annabel will treat herself and Rosie to new trainers every year. With Vitality, she can get a 50% discount at Sweatshop. they sell all the leading brands of trainers such as Nike, Adidas, Reebok and lots more. She’s got her eye on a pair of Nike’s priced at £70 and a pair for Rosie at £25. This equates to a £47.50 saving or £3.96 a month.
2. Cash back
Finally, Vitality rewards customers for their Vitality status. In short, every time you’re active you collect Vitality points. The more points you collect, the higher your status (bronze, silver, gold, or platinum).
If Annabel clocks up 2,400 vitality points and achieves platinum status (which is achievable if she counts her steps at work with a FitBug and takes her Lloyds pharmacy health check), she can earn £100 cash back, which equates to a further saving of £8.33 per month.
If you add just these savings together, you can see that Annabel’s cover is effectively better than FREE! Here’s the calculation:
Monthly Insurance Premium: £35.64
Value of monthly rewards & savings: £52.89
Total cost of Cover -£17.25
So by spending £35.64 on her protection insurance for her and Annabel it’s actually putting money back in her pocket!
There’s luxury savings too…
With Vitality there are a host of other treats, rewards, and incentives, which Annabel could enjoy.
75% Off at Champneys’
• She’s planning to enjoy a two-night all-inclusive classic break at Champneys’ with 75% discount saving £225. This includes a healthy breakfast, lunch and dinner, 2 treatments and use of all the facilities. Perfect for a relaxing get-away from the stresses and strains of everyday life.
50% Off at Evans Cycles
• If she wanted a new bike, she could save 50% at Evan’s Cycles. This could equate to a saving of up to £500. This incentive is available on a new bike every three years.
What could Vitality offer you?
If you’re a 30-year-old mum with a similar level of activity to Annabel, then this case study should give you a good idea as to what Vitality has to offer you.
But remember… there are more benefits and treats available. So why not discover what you could enjoy (based on your lifestyle and interests) by speaking to us today?
You’re under no obligation to take insurance, but at least you’ll know what you and your family could enjoy when you insure your life.
To get started, simply visit the call request page.
Alternatively, if you’d like to know what to expect during your phone appointment, read this informative blog.