PruProtect has launched ‘Vitality Optimiser' on its PruProtect and Essentials Plan, offering new clients an upfront discount on protection premiums in a bid to reduce pricing ‘inequality'.
This option can be chosen by clients when taking out a new policy, and in addition to a discount, also giving them cashback every year if they look after their health with Vitality.
The insurer said it is aiming to address an "inherent inequality" in the way protection is priced, by incentivising and rewarding customers who engage in activities of healthy living on an on-going basis.
It will provide an upfront discount for everyone - based on the term of the policy being taken or the age of the applicant on Whole of Life plans, the discount could be up to 40% off our standard premiums.
Cashback for those engaging in healthy living will be available for up to £100 per policyholder per year, with double cashback for those holding both a PruProtect and a PruHealth policy. A couple with both products could receive £400 cashback every year
The ability to control premiums - dependent on the level of engagement in healthy living through PruProtect's Vitality programme, protection premiums will rise, stay level or fall on an annual basis. Even if no engagement has taken place, the maximum increase is just 2% per year, PruProtect said.
In addition, policyholders will have access to the full range of Vitality benefits - including free cinema tickets each week, half price gym membership and leisure discounts for an extra premium of £3 per month.
The insurer said current protection policies use a "blunt approach to pricing, assessing the client's risk at a single point in time, failing to take account of their ongoing lifestyle and attitude to health and wellness."
PruProtect chief executive Herschel Mayers said: "We know that most people want to be healthy, but insurers fail to encourage their policyholders to actively engage with their day-to-day wellbeing.
"By giving everyone lower premiums, the power to control those premiums over the term of their plan in return for looking after their health, and additional rewards and cashback, we aim to revolutionise the way protection is sold in the UK".
Peter Chadborn of Plan Money said: "Innovation and client engagement do not necessarily go hand-in-hand but I believe Vitality Optimiser achieves both. I am also pleased to see refinements that assist in positioning comprehensive concepts in a straight forward way".