Ageas offers Low Start cover deal
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Ageas Protect has launched a term and critical-illness product which offers the same level of cover available on the firm’s YourLife menu plan at a lower initial cost.
Ageas Protect, which rebranded from Fortis Life on January 10, has launched its Low Start cover to target customers who need comprehensive cover but cannot afford to pay for it initially, for example, firsttime buyers.
Low Start customers can buy the level of cover they need at a lower premium, which gradually increases at a guaranteed rate for the period of the cover.
Customers can choose from Low Start term insurance or Low Start critical-illness with term insurance.
Managing director Martin Werth says: “We have launched Low Start to help customers afford the protection they need now. It offers the same benefits as our YourLife plan at a lower initial cost and is the ideal solution for customers who may have thought the protection they need was unaffordable.”
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Readers' comments (7)
Anonymous | 27 Jan 2011 12:48 pm
This has mis-sold written all over it. How many unscrupulous advisers will take the low start premiums as an opportunity to tell customers they can undercut their existing cover without telling them the price will steadily rise throughout the term!?!? I'd like to think non but my industry experience screams to me otherwise
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Anonymous | 27 Jan 2011 2:10 pm
Don't worry - i'm sure your "unscrupulous advisers" will churn the policy before the prices rise too far... in fact, wouldn't that be in the customers best interests?
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Ian Jefferies, Ageas Protect | 27 Jan 2011 4:14 pm
When developing Low Start we ensured the premium structure was completely transparent. The quote illustration clearly shows premiums each year for the first 10 years and the total lifetime cost. Customers also have choice as they are able to stop premium increases either by reducing the sum assured or switching to level premiums with no further underwriting.
Low Start allows customers to have the level of cover they need now where their budget is fixed and would otherwise have to settle for less cover. For example, on a 25 year plan many customers will be paying a lower premium than on a level premium basis for the first nine years, depending on their age. Given these points, Low Start provides a valuable addition to the solutions available to advisers and their customers
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Anonymous | 28 Jan 2011 11:58 am
Product innovation should be encourage where there is customer benefit. There will be customers whose budgets change and increased premiums can be afforded (however, assuming inflation the purchasing power is reducing as premiums increase), What happens to those customers who can not afford the increase? how many people have more money this year than they did last? very quickly their sum assured is reducing! whether this would be more or less than an equivilant level premium at the start is a question for the Ageas actuarial department.
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Anonymous | 31 Jan 2011 11:37 am
Great to see a company that is bold enough to deliver some innovation. In a world where consumers expect choice why not give them the option? Thousands of column inches in MM are dedicated to worthy initiatives about encouraging more people to buy life insurance but if this product enables the public to buy a policy which they would otherwise not have done, yes, due to price, then it's a winner. Sure, it can be mis-sold along with every other product but don't let the talking heads get in the way of a practical innovative which could help reduce the protection gap during these tough times.
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Anonymous | 31 Jan 2011 11:37 am
Great to see a company that is bold enough to deliver some innovation. In a world where consumers expect choice why not give them the option? Thousands of column inches in MM are dedicated to worthy initiatives about encouraging more people to buy life insurance but if this product enables the public to buy a policy which they would otherwise not have done, yes, due to price, then it's a winner. Sure, it can be mis-sold along with every other product but don't let the talking heads get in the way of a practical innovative which could help reduce the protection gap during these tough times.
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pete wildebeast | 7 Feb 2011 10:39 am
Nice idea.
But we have had constantly reducing life cover prices for over 5 years and yet consumer demand has not increased.
Thus an even cheaper entry level price will similarly struggle to increase demand.
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