PruProtect this week set up its first product, offering wholeof-life cover and critical-illness cover with the option of severity-based payments.
Policyholders can reduce their premiums by adopting a more healthy lifestyle through a tie-up with PruProtect’s Vitality programme used by sister company PruHealth.
By going to the gym regularly or consulting a doctor, clients can reduce their prem-iums by up to 2.5 per cent a year if they are considered to be taking the most care of their health. This drops to a 1 per cent reduction for the second level of engagement and no reduction for modest interest.
But if customers make no effort to improve their health, their annual premiums will increase by 2.5 per cent a year subject to a maximum level.
Shaun Mattison, CEO of PruProtection, the holding company of PruProtect, believes the products will change the way customers think about life insurance and their health.
He says: “It is not about a piece of paper you put in a drawer and forget about for 25 years. PruProtect customers will be able to actively manage their insurance premiums by looking after their health and wellbeing.”
The new products includes severity-based payouts at six different levels and the ability to effectively reset the amount insured after a claim. This adds a cost to the premium but allows for several big claims on the same policy, even for the same illness.