At a time when heart attacks and strokes are on the rise, here’s how advisers can promote good health among their clients.
In South Africa we are seeing rising rates of heart disease and strokes due in many cases to things like hypertension, obesity, diabetes, a lack of exercise and smoking. This can be seen as being part of a broader global trend.
The South African Heart and Stroke Foundation indicates that heart disease is one of the biggest causes of mortality in the country – more than all cancers combined. In fact, their research indicated that every hour in our country, 10 people have strokes and five people have heart attacks.
A more concerning point is that heart disease, which was once thought to be an issue affecting mostly elderly people, is becoming more common in younger people, possibly connected to growing levels of obesity in this age group.
The adviser’s perspective
Liberty’s 2023 Claim Statistics showed that cardiovascular disorders made up 23.4% of all lifestyle protection claims, followed by respiratory disorders at 7.3% and strokes at 5.6%.
But beyond the medical figures, being aware of the real risk of heart disorders and strokes among clients is a very real prerogative.
One way to address this is to incentivise clients to live a healthy lifestyle. Liberty offers a Wellness Bonus to all its Lifestyle Protector clients that aims to motivate them to improve their overall health, thus potentially lowering their vulnerability to heart disease and strokes.
This is designed to benefit clients who – maybe despite their best intentions – might not be able to manage their wellness in a significant way, sometimes for reasons beyond their control.
To sign a client on to this, they must have a Lifestyle Protector policy with qualifying benefits and be a member of a wellness programme that Liberty recognises. When the bonus feature is added to a policy, the client will contribute an additional 5% of qualifying monthly premiums. This may seem like an extra cost at first glance, but managed properly it can in fact lower a premium.
Of course, these types of solutions sometimes introduce a risk to advisers in terms of their client relationship because of increased premiums. But with this solution, if properly managed, the benefits are designed to substantially outweigh the costs, both in terms of health and financial rewards.
A wellness bonus with balance
To get the most value, a client should engage in healthy behaviour, have it measured through a wellness programme, and look to improve or maintain their Wellness Score. By doing so according to the programme, the client qualifies to have extra charge returned as a minimum bonus – among a number of other significant rewards.
The bonus aims to motivate clients to improve their health to such an extent that they have the potential to get up to 40% of their lifestyle protector premiums back in cash. The size of the cashback is dependent on their wellness status. The first cashback is paid five years after adding the bonus benefit; it is then paid annually.
Good health is a benefit for all sides
For all of this to work, it does clearly impose some degree of responsibility on the adviser in that they may find themselves having to regularly motivate their clients to maintain a certain level of fitness.
However, the benefits of having healthy clients cannot be understated. Their risk is lowered substantially for a start, and their ability to sign on to different products, should they choose, becomes much easier.
So for advisers, taking a direct motivational interest in a client’s long-term health can have many benefits, not least of which is their professional obligation to improve their clients’ lives, something which would come naturally to any adviser.
