Five things you could say to clients considering cancelling their cover

With most people watching what they are spending right now, it’s important clients don’t make the mistake of cancelling protection and health insurance they might end up desperately needing. 

There is no escaping the impact the cost-of-living crisis is having on households across the UK, with people understandably looking closely at their finances over the coming months. One of the things clients might consider cancelling right now is their protection and health insurance. This is despite them being more likely to need it.

We’ve already explored how advisers can build client relationships to avoid cancellations during the cost of living crisis, but here are five things you could say to clients to help them think twice about cancelling a plan they might end up seriously needing.

It’s always worth asking clients to think back to why they took out cover in the first place. Was it to protect themselves from the financial impact of a serious illness or death, or to safeguard their household income from sickness or injury? Or because they are concerned about getting timely access to healthcare? In all these cases, the situation we face in the UK today has only made their cover more important than ever. As we all know, often the risk associated with cancelling a plan will outweigh the cost of the premium. Many clients are acutely aware of their vulnerabilities these days – both physically and financially – so they might just need to be reminded. This could stop them from leaving themselves unknowingly exposed.

2. “People are less easy to insure as they get older”

Clients might be quick to assume that if they cancel a plan now, they’ll be able to take out a similar one in future when they’ve got more money to spare. While this might be true, it’s important to remember that getting cover at a similar price might not be possible later down the line, especially if their health situation has changed. As all advisers know, the older a client is, the more expensive it is likely to be – and with more chance of an exclusion. It’s important existing clients are made of aware of this if they are considering putting a stop to a plan.

3. “Staying healthy is important too”

Just because your client’s financial health might be under the microscope, this does not mean their physical and mental health has be forgotten. We believe that protection and health insurance plans should do more than just pay out when it’s needed most. They should give people the tools they need to get healthier and therefore avoid having to claim at all. For example, at Vitality, highly engaged members on average incur less healthcare costs, PMI claims data shows¹. And making positive lifestyle choices is not always easy, so being incentivised and nudged in the right direction can be what really makes a difference.

4. “It’s not just cover you’ll miss out on”

These days protection and health insurance plans can offer far more than just cover. All too often these extra benefits get overlooked, such as virtual GP services, mental health support and health checks. On top of this, we have seen clients who are highly engaged with our proposition on average save hundreds of pounds a year on gym memberships, Apple Watch and Amazon Prime. These added benefits result in client being more engaged and healthier in general, with 39% less chance of dying than those who don’t engage with the Vitality Programme².

5. “If you really can’t afford it, let’s look at other options”

If after that, your client still wants to cancel, it always worth looking at other options. After all, some insurance is always better than no insurance. Can the sum assured or cover amount be lowered? Or is there are more affordable product available that can suit at least a portion of their protection needs? It’s also a good idea to have a conversation with the insurance provider to see if there is any flexibility around premium payments to avoid business dropping off the books completely. Helping to avoid this will not only mean your client can enjoy a whole host of tangible benefits here and now – they will still be covered should the worst happen at a time when they need it most.

Working towards better client outcomes is good for everybody – this includes you and your client. Visit our Supporting business quality page to read more.

Find out more about Vitality’s unique approach to financial protection alongside a host of wellbeing benefits and how you can deliver tangible value to clients from day one.

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¹ Vitality Health Claims and Insights report 2022
² Based on a comparison of Vitality members to BHW data (2018-2019)