Once upon a time, a man from the Pru walked the streets of Britain, collecting small amounts of cash every week, which paid out a lump sum if the worst happened. That man vanished in the 1990s, as continued street muggings and the admin associated with handling cash sent the Prudential into a totally different direction. Now Aviva has launched Simple Life Insurance – ‘no frills’ cover to complement its more comprehensive Life Insurance+ policy – helping advisers ensure that more customers are financially protected whatever their budget.
Recognising that some clients do not have the time, desire or finances to take out comprehensive cover, Simple Life provides essential life insurance for clients and their families, without them needing to spend time considering additional options or features.
Mintel’s ‘Term Assurance’ report found that people reported not having life insurance because they can’t afford it (45%), they had other financial priorities (25%) or they kept putting it off (19%). However, 55% of respondents said that they would be most persuaded to do so by simple, low-cost cover.
The new policy has been designed to be clear and easy for different groups of advisers and their clients to consider, with clear pre-application eligibility questions, an underwriting guide, instant decisions, and no medical evidence required. It offers simple banded cover based on the client’s age, while the introduction of simplified policy documentation will mean that clients can view benefits easily.
A basic range of support services includes advance funeral payments, grief counselling, estate administration though MyDigiExecutor and a bereavement guide. The new policy also includes gym discounts. Simple Life Insurance has been designed to extend Aviva’s existing advised life insurance proposition. It can provide an alternative for clients who might have previously rejected taking out life insurance – with the recognition that they still require some core protection in place.
The policy will be available on all major adviser protection portals from launch. Over the past three years, Aviva has continued to develop its individual intermediary protection business into simplified, menu, high value and wealth; and business protection distribution channels.
Aviva has also recently introduced an interactive protection ‘shield’ sales aid to support advisers in their customer conversations and explore the various options and support services available.
Mark Cracknell, head of protection distribution at Aviva said: “Simple Life Insurance extends our life insurance proposition to customers whatever their budget or circumstances.
While our menu proposition will continue to offer an appropriate solution for many advisers and their clients, Simple Life Insurance is an important part of ensuring that we have a range of options to help more people put protection in place.
“We know that 66% of UK adults do not have any form of valuable life insurance2 . We believe this new policy will encourage customers who might have previously walked away from taking out life insurance based on cost or complexity.”