What does ‘shared-value’ mean for life insurance?

Life insurance cover can mean so much more than just purchasing protection for ‘what if’ moments and eventualities. Discovery Life proves that cover can be rewarding too.

To date, Discovery Life has paid out around R31.3 billion in claims.

During 2019, the total amount paid out to clients amounted to R4.8 billion. Last year, 97% of claims received were paid out.

“By design, Discovery Life’s extensive product range provides protective cover for a full array of potential life-changing events,” says Daniel Stoch, a Senior Risk Specialist at Discovery Life.

“Any person can be affected by the development of disability or severe illness – both of which can impact a person’s ability to earn sufficiently for a household. The death of a loved one is another life-changing event that can result in financial difficulties,” he adds.

“The R4.8 billion we paid out in claims last year spans across our wide range of cover benefits, with less than 50% of that for traditional life cover. This tells us that we have an extensive enough offering that is capable of protecting people’s lives.”

“Of the total we paid out between January and December 2019, more than R2.2 billion has helped support families with life cover payouts. More than R1.1 billion was paid to clients who submitted Severe Illness Benefit claims. We paid out R226 million in multiple claims during the course of last year too. Around 21% of severe illness-related claims were also paid out as second or subsequent claims. Again, this shows us that we are catering for the needs of people today.”

“Also on the higher end of claims payouts during 2019 were against Capital Disability and Income Continuation benefits with more than R816 million and R375 million respectively,” adds Stoch.

Enhancing people’s lives through rewards

“In order to maintain an offering that can better benefit people’s lives, we’ve woven in reward mechanisms that enhance financial security into every product offering,” Stoch explains.

“These include features like upfront premium discounts and the ability to earn PayBack, as well as the option to select the Cash Conversion benefit, which provides lump-sum payouts in retirement.”

“To date, we have paid out around R6.8 billion in PayBack to our clients. Between January and December 2019, client’s received R1.2 billion in PayBack. We’ve even saved our clients and their families around R1.2 billion in gym fees during 2019 through our incentivised rewards programme, Vitality,” he adds.

“When our clients take care of their health by eating well, exercising regularly and completing necessary health checks, they become healthier, even well beyond the point of retirement. This reduces risk for the development of potential conditions like cancer or cardiovascular diseases, among others – especially later in life when risk for these typically increases.”

“In 2019, clients on either a Gold or Diamond Vitality status showed a 53% lower mortality risk than those clients who weren’t engaged with the programme,” says Stoch. “Positive behaviours enhance a person’s state of health and that lowers insurance risk. The benefit of this is that value can then be shared – in the form of discounted premiums and PayBack. This contributes to making cover go even further.”

“We’ve taken the stance that to protect people’s quality of life through insurance, we need to keep a close eye on what needs to be covered as comprehensively as possible. We assess risk based on these dynamic needs and offer a range of cover that can continually evolve to remain relevant. When cover is relevant, it’s also more valuable – for life,” concludes Stoch.

Discovery Life Limited. Registration number 1966/003901/06, is a registered long-term insurer, and an authorised financial services and registered credit provider, NCR Reg No. NCRCP3555. Product rules, terms and conditions apply.

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