Life Assurance & Children’s Benefits | Are we as an industry missing a step in comparison to the Health Insurance Market?
Paul Kelly
Managing Director @ ClearChoice? & TAG | Specialist knowledge in Irish Financial advice/Brokerage distribution channels
Most of us will have seen the recurring and most recent campaign from the likes of the VHI and Laya around their offering for Children. The current campaign running from the VHI is this;
All Kids | All Half Price | All One Plans
This marketing campaign does 3 things very well, the VHI;
1. Pull at the emotive and protective instincts in parents with a cartoon campaign that reminds us of children
2. Offers a clear discounted value and what policies it applies to
3. Are clear when this campaign ends
How does the Protection industry as a whole compare against these three clear messages to our consumers or target audiences?
1. We rarely mention Children or Children’s Benefits in any advertising campaigns or to clients
2. We do not clearly outline what Children’s benefits are on what policies or the cost attached to them(if any even applies as many are built into the premium)
3. We do not tell them that the benefits are applicable as long as your children are children and the premium is being paid!
The following Children’s related benefits are available on Term Assurance, Mortgage Protection and Specified Illness Cover;
Children’s Life Cover
Provides a portion of free life cover for the policyholders children, ranging from €2,500 up to €7,000
Guaranteed Insurability
The option to increase the sum insured by a certain amount without medical underwriting on the birth or adoption of a child
Medical 2nd Opinion Service
The option for a child to obtain a medical 2nd opinion if they have received a diagnosis of a significant medical condition
Hospital Cash Cover
This is a Rider Benefit that has an additional premium cost | If hospital cash has been selected on the policy, the Life Company will provide a portion of the hospital cash to your children free of charge. These daily pay-outs range from €30 a day up to €60 a day for children.
Overseas Treatment Plan
This is a Rider Benefit that has an additional premium cost | Overseas Treatment Plan is an additional product feature, which provides the option of treatment abroad. It will pay a pre-determined daily cash amount in the event of diagnosis with a covered condition. This is currently set at €30,000 per day for the first 7 days.
Children’s Overseas Surgery on Specified Illness Cover policies
If surgery is required overseas the Life Company will provide a lump sum to cover relevant cost. The highest pay-out in the marketplace is currently €25,000 for this product feature
Children's Specified Illness Cover
If specified illness has been chosen, the Life Company will provide a portion of free specified illness cover for the policy holder’s children if diagnosed with one of the specified illnesses listed. The pay-outs range from €20,000 up to €25,000
Children's Partial Specified Illness Cover
If specified illness has been chosen, the Life Company will provide a partial portion of free specified illness cover for the policyholder’s children if diagnosed with one of the partial payments illnesses listed. The pay-outs range from €7,500 up to €10,000
As an industry, we rarely talk about these substantial and fantastic benefits that we can speak about to our clients!
We urge you to start using these talking points to your clients with children or considering having children through the following ways;
· Factfind and Statement of Suitability stages with clients
· Social Media & websites | “Did you Know” Campaigns about Children’s Benefits in place
· Client advertising and ezines
Principal at Dunning Financial Services
7 年Well said Paul. Excellent comments. With all the talk from the our industry about providing a professional and valuable life long service which adds value to people lives and the time and effort it takes to qualify and provide an on-going quality service, the Insurance industry providers who give these agencies to supermarkets and the like, are selling us professional 'short ' to say the least. Thomas Dunning
Financial Planning Specialists at Talk Financial Limited
7 年Hi Colm. As an industry we could much better promote the invaluable service on offer by our industry. All businesses must sell, but the financial industry is still perceived as a sales industry. The vast majority of advisors are qualified and professional. Our clients will testify to that. And we have excellent financial institutions including your own. But, giving agencies to firms whose business is medical cover, or to supermarket chains who sell food, or to banks who are meant to safeguard and loan money, just so they can simply "sell" life assurance is adding fuel to the sales perception. Does any life office really believe that a supermarket, a health insurer or a bank has the capability, experience, or critically, the interest to ascertain client needs, complete market research, document advice and provide 20-30yrs post-sale service long after the commission hit is gone? I agree that we leave a lot behind in promoting the benefits of our service. But institutionally, the insurers need to first stop chasing the next easy sale, and convince the consumer that our business is advice, not just a quick sale. Buying a pension with a loaf of bread, or buying life cover with your credit card is not really what we should be about.