Vitality simplification removes 'confusing elements' - CIExpert

‘Step in the right direction’

Alan Lakey
16 September 2020

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Changes should help advisers and consumers ‘better understand’ Vitality concept, writes Alan Lakey

Simplification has without doubt been the compelling theme for 2020 and Vitality has stepped up to the plate to deliver its own version of simplification. Offering varieties of plans to choose from adds one level of complexity but historically this has been augmented by the myriad options applicable to each plan. Choice is good but it is well known that overmuch choice serves to confuse and acts as a disincentive to proceed.

Today's changes act to remove a number of confusing elements which should serve to persuade advisers to reassess their viewpoint and consumers to better understand the concept. The main adjustments are highlighted in the tables below.

Verdict

Many advisers have lamented the complexity that served to prevent them from recommending one of the Vitality plans. Whilst these modifications are welcome the plan and its various options remain convoluted and it would seem that whilst this is a step in the right direction a number of additional strides will be required. The changes come into effect on 3 October.

Plan Changes

Current Options

Revised Options

VitalityLife plan

VitalityLife Essentials plan

Vitality Mortgage plan

All three plans are being consolidated into a new Personal Protection Plan and the current proliferation of minimum premiums, child cover options, decreasing term interest rates and guaranteed insurability options will become consistent.

Benefit Changes
Personal Protection Plan	Serious illness cover (SIC), term life, whole of life and income protection can all be included. The previous SIC Protector option will now be called Mortgage SIC.
Children	Currently basic child cover is included with the option to increase the level of protection. With the new Personal Protection Plan child SIC is optional and the conditions included will mirror the parents plan. A sum between £15,000 and £100,000 can be selected when the plan is taken out and is available on the same level or decreasing basis. As the parents cover. The cost has been simplified into £2.00 pm for every £25,000 of SIC benefit or £2.50 pm for every £25,000 of SIC Plus benefit, on a pro rata basis.
Optimiser	The two existing Optimiser editions are being replaced by a single version with the adventurous title of Optimiser. Slightly confusingly there are two versions of this - Vitality Select and Vitality Plus - which are dependent on the plan premium. These continue to offer a generous premium discount with the annual premium adjusted according to the insured's Vitality Status.