The concept behind Vitality Lite is very simple – just offer a lower minimum premium and a smaller benefits package to attract more customers. So, whereas the minimum premium for Vitality and Wellness Optimiser is £30 a month (£40 for joint life applications), that drops to just £8 (Life Essentials) or £10 (Life Plan/ Business protection/Relevant Life Plan) on Vitality Lite.
For an additional £1.50 a month (compared to £3.80 on Vitality Plus), customers get access to a reduced range of benefits. The list is set out online at https://adviser.vitality.co.uk/life-insurance/healthy-living-options/vitality-lite-and-vitality-plus/ so customers can see what they are getting – and what they might be missing out on. Customers still get access to health screenings, stop smoking sessions, discounted activity trackers and selected health spa trips. They also enjoy an upfront discount and can earn up to £125 cashback as an additional incentive to getting healthier.
Some of the main benefits not included on the Lite option are access to benefits from Virgin Active, Nuffield and David Lloyd clubs, Ocado, Vue/Cineworld and travel companies.
However, a significant number of benefits are still included.
Comment: Lower premiums may attract more customers, but it costs Vitality to offer the range of additional benefits it does and so a lower cost access to some of those should appeal to those whose budgets are lower. It’s a matter of judgement as to whether Vitality Lite’s benefits will appeal more or less than those for Vitality Plus, but perhaps it’s only right that the customer should be the judge of that.
All in all, this is an interesting option and it will be worth seeing how this develops. As always, Vitality is refreshingly different, but the downside is that some advisers do not (yet?) get what it is trying to do and so won’t invest the time necessary to become completely familiar with its options and even its language. A Marmite proposition? Maybe, but I applaud most of what it does!
Plus points: A lower cost option with a lower minimum premium; Access to additional benefits for less; Vitality is refreshingly different and much of its innovation aims to help customers in many more ways than just through low cost.
Not so plus points: Marmite options?; Some discounts and rewards are not available on Lite; A relatively complex proposition that operates on a number of levels.
Rating (max 10): Innovation: 8. Overall: 8. Gold
Tags: Other; Vitality