If life is for living, then why shouldn’t protection products do more than just provide financial protection, argues VitalityLife CEO Justin Taurog

In recent years, we’ve seen the way people live and work change dramatically. Meanwhile, worsening health trends are leading to rise in chronic, and in many cases preventable, diseases; more people are now living in poorer health, particularly in their later years.

At the same time though, we’re more aware than ever of lifestyle risks such as smoking, lack of exercise and poor diet and want to get healthier. Health, wellness and longevity are now big business, and younger generations appear to be placing increasing importance/high priority on these things.

The problem many of us face though is that our behavioural biases mean we find it hard to make the changes we know could benefit us in future. And, despite our best efforts, sometimes we do just get unlucky and fall ill or suffer accidents and injuries.

Shifting the protection narrative

Our industry plays a crucial role in helping to improve people’s financial resilience and protecting them against life’s ‘curveballs’. However, despite the obvious need for protection, it remains true that it’s a product that’s sold not bought – i.e. people aren’t naturally compelled to take out cover.

The shift away from many of the traditional moments that would have triggered a protection conversation – buying a house, getting married, starting a family and so on – has also meant we’ve had to find new ways of reaching and engaging with consumers.

Traditionally, the sale of protection products has mostly focused on offering people peace of mind. In exchange for a monthly premium today, clients can be safe in the knowledge that if something happens tomorrow, they’ll be covered.

Our cognitive biases though mean that many people are unconvinced by this message. Those traditional arguments often conflict with people’s optimism bias and belief that ‘it won’t happen to them’.

Furthermore, given the health trends I’ve highlighted, why should financial protection only serve as compensation for serious illness or untimely death anyway?

A longer, healthier life – the best outcome?

While protecting clients from financial hardship due to the unforeseen is at the heart of what our industry does, I believe the challenges we face as a country call for an entire rethink of the role protection can play in people’s lives.

In a shifting protection landscape, we can do more than simply provide cover for when things go catastrophically wrong.

If today’s consumers both demand more from their plan and are more interested in their health and wellbeing, why shouldn’t our industry innovate and rethink those traditional models of insurance.

With this comes the power to not just protect people’s lives, but to actively help them lead healthier, more active lifestyles with an insurance product they can enjoy every day which, in turn, can reduce the chances of them falling ill and even improve their life expectancy. What could be a better outcome than that?

Navigating the future of Mortgage & Later Life Lending

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