Vitality is offering a unique strategy to get your life and serious illness cover sorted that may spark further conversation
Vitality has shown real initiative with its new Mortgage Protection Plan, which provides what all new homeowners crave: simplicity.
With all the paperwork and hurdles home-buyers go through to get a mortgage, the last thing on the to-do list is often life cover.
However, Vitality is offering terms for life and serious illness cover with just five underwriting questions (income protection requires more detail), meaning such an important job can be pushed up to number one priority.
Alongside this, it offers free mortgage cover, providing temporary cover should anything happen from the moment the property is owned to the policy starting. A great benefit, and one that advisers do not always talk about.
The downside to the offering is that the Vitality plan itself is not as simple as the application process.
One of the caveats is that it must include the “optimiser” option, meaning premiums aren’t fixed so could go up or down each year depending on how engaged the policyholder is with the healthy lifestyle plan.
From prices to perks
To earn these points and move up from Bronze to Platinum, policyholders need to do a variety of activities, from investing in a fitness tracker for steps to joining a gym and taking part in local park runs. If these activities do not take place, the price will increase year-on-year.
There are also the minimum monthly premiums to access the full Vitality benefits: £30 for a single plan and £40 for a joint plan, plus an additional monthly fee which opens the door to all the bells and whistles of your free Starbucks and cinema tickets.
This means it can be more expensive than its competitors. When you have just taken on one of your biggest financial commitments, are you going to be happy spending more on a plan to offset an extra 20 minutes on the phone? As one of the main drivers for consumers to buy protection, more should be done to highlight the need for cover when taking out a mortgage.
Making the right decision
There is still a misconception that people must have cover as a requirement of getting the mortgage, which simply is not the case.
That said, it is incredibly wise to do so and then to ensure cover is renewed as mortgage terms and balances change over time.
It is said there are 11.1 million mortgages in the UK, with around three million households having no cover in place. We have a lot more to do as an industry to highlight the importance of taking out protection, and this step from Vitality might shine a well-needed light on the topic of protecting one of the most important purchases we ever make.
Emma Walker is chief marketing officer at LifeSearch
The post Insurance Watch: Shining a light on mortgage cover appeared first on Mortgage Strategy.