Vitality Life Protection?

Iamnobody

Does anyone have a policy with these? 

I’m looking at our current life insurance and critical illness cover which is with Legal and General and frankly far too expensive.

Vitality do a slightly different death policy with a 25% of the insured death sum for a serious illness payout. They also give you discount gym membership and money back for being healthy!

Thanks

TTony

Vitality have - and/or are attempting to develop - an interesting business model in that they're linking life insurance/assurance with private medical, pooling data from one side of the business to help calculate premiums in the other.  Hence also the discount gym memberships (it's all about being healthy - or developing other data streams, depending on your degree of cynicism !).

My personal opinion is that it's a possible future evolution of the life business - which essentially hasn't changed for c200 years - which has the potential to meet the more real needs of an aging population in the c21st.

It's a relatively new business (origins was Pru Health), and they need to build  critical mass.  They're heavily supported by their SA parent group in terms of funding, so I'd expect their premiums to be "competitive".

Other providers do have similar policy terms - ie essentially "cash in" on a death payout to fund cover for serious illness before death, so have a good look around.  

Have you prodded L&G to see whether they'd adjust your premiums?

Iamnobody

Wisdom awarded for your knowledge of the industry...

Thanks for the in depth response.

My currently policy was taken in haste after a risky house move and covered us to the max on both death and critical illness so it’s not necessaryilly L&G being particularly expensive.

I’m currently looking at options and trying to find a sweet spot of lower monthly payments and adequate cover but not necessarily as comprehensive as we currently have.

Also the currently policy is a decreasing one - I think there’s more value in a level term policy even if it’s for a reduced insured sum.

I’m also open to multiple policies to get the best overall cover.

Lots to think about!

richardhomer

I used to work for them. I’m four stone lighter as a result - the health incentives are a great idea.

Their products are quite complex - many financial advisers simply couldn’t be bothered to properly learn how they work - so often steer clients away from them.

As long as you understand the product - I think it’s great. Please note - you should not construe what I’ve said as a recommdation or financial advice!

mrkb

TTony said:

Vitality have - and/or are attempting to develop - an interesting business model in that they're linking life insurance/assurance with private medical, pooling data from one side of the business to help calculate premiums in the other.  Hence also the discount gym memberships (it's all about being healthy - or developing other data streams, depending on your degree of cynicism !).

So if they give you a low quote they think your not long for this world? Surely no one would want to risk getting a quote!!

strtdv

Quite the opposite I think, if they give you a low quote it's because they reckon you're healthy and unlikely to claim

LoFi

Iamnobody said:

Also the currently policy is a decreasing one - I think there’s more value in a level term policy even if it’s for a reduced insured sum.

If the purpose of the insurance is to cover your mortgage, a decreasing policy is appropriate. If you go for a level term for a reduced sum, and die sooner, your wife's in trouble, so why bother with it at all?

(Obviously, if the sum insured is the total value of the mortgage, you don't have this problem, but it will be much more expensive than a decreasing-term for the same amount)

Iamnobody

LoFi said:

Iamnobody said:

Also the currently policy is a decreasing one - I think there’s more value in a level term policy even if it’s for a reduced insured sum.

If the purpose of the insurance is to cover your mortgage, a decreasing policy is appropriate. If you go for a level term for a reduced sum, and die sooner, your wife's in trouble, so why bother with it at all?

(Obviously, if the sum insured is the total value of the mortgage, you don't have this problem, but it will be much more expensive than a decreasing-term for the same amount)

The idea is to leave enough to make life easier in the event of an early death/illness, whilst sticking to a sensible monthly payment. In my mind we were overinsured before and paying handsomely for it!

We’ve both taken out a new decreasing policy, but the sum insured is higher than the outstanding mortgage. So on death it should clear the mortgage and leave a few quid spare...bearing in mind we both have death in service pension payouts as well.

Also we’ve insured me for a higher value based on my larger financial commitment to the family (wife works part time).

We used to have a joint account which is marginally cheaper at most providers but doesn’t pay out twice.

So if one person dies or gets a payable illness - the policy ends. Also if you happened to die at the same time it only pays on one life...

Ok I know the chances of us dying together are low, but in the event it did happen it doesn’t leave the kids with much, and if one of us died before the other, the living one has the hassle of sorting out a new policy - when frankly their mind won’t be in the right place.