This new plan from AXA’s D2C arm offers term insurance for under 60s, with terms up to 40 years being available, provided the cover does not go beyond the customer’s 70 birthday. Minimum age is 18. Maximum sum insured is £500K (£250K for ages 51-59).
The plan is underwritten, and customers can get a quick quote within 60 seconds.
Single and joint life (first death) cover is available. Customers can choose life cover only, or add critical illness cover. Only three conditions are covered – cancer, heart attack and stroke and the sum insured on this element of the plan is just 25% of the full sum insured (with the remaining 75% payable on death).
Death from suicide is excluded in the first year of the plan.
Sun Life says most customers could get £100k of life cover for less than £15 a month.
What They Say
Managing director Dean Lamble said: “The leading reasons people don’t buy life insurance is they find the process too complicated and perceive the price to be too high. We want to transform the market and design products around consumers’ needs. More and more consumers are looking for the same retail experience they enjoy when buying non-financial services products. So, our Family Life Insurance has a simpler customer journey, reduced underwriting and affordable premiums – all backed up by significant investment in engaging customers with the information they need.”
What We Say
"D2C plans go against the rule that consumers should always buy through an intermediary, don’t they? Well yes, but we know that many over 50s buy guaranteed acceptance plans direct (53,000 in the second quarter of 2014 – or about twice as many people as the number who took out individual income protection over through an adviser) and we know too that many people have no cover or very little cover, so any D2C initiative should help raise the profile of the need for protection insurance. Sun Life’s new TV ads alone should help some people think more about whether they need protection and, hopefully, some of those should contact a professional adviser to help them decide what they need and how best to get it.
"Moreover, Sun Life plans to launch a broker life insurance product (selected intermediated channels only) over the next 12 months’ too.
"But on this plan, Sun Life’s thesis is simple – many people just want easy to understand and inexpensive cover. Could an IFA do better? Probably. The CI cover is weak, trusts are barely mentioned and a super-underwritten plan would surely offer more bang per buck.
"But isn’t it better for people to have cover they are comfortable with than no cover at all? Probably again. And doesn’t that actually create opportunities for advisers to later recommend ‘better’ cover, even if it’s harder to buy and understand, so probably needs adviser hand holding to get up and running? That’s our third ‘probably’. In summary, the TV ads alone are good news for IFAs and, if Sun Life succeeds in taking funeral plan techniques down to the under 60s, the overall effect could be very positive indeed. Probably."