BT Life Insurance has launched a limited-time offer of a 25 percent discount off the first year’s premium for new stepped premium BT Protection Plans lump sum policies.
Described in a release to advisers as the insurer’s biggest discount offer ever, the discount applies to all eligible BT lump sum policies quoted from 28 October 2019 until 30 April 2020.
Positioned as effectively delivering three months of free cover, the insurer confirmed to advisers the 25 percent discount applies in addition to all other available discounts and will automatically be applied to eligible quotes through BT’s LifeCENTRAL+ quote software, and through premiums modelled in Iress Risk Researcher and other adviser research software.
The offer extends to both standalone and linked policy types, but does not apply to level premium or combined stepped/hybrid policy combinations.
Premiums will revert to standard pricing structures from year two of the policy.
The last sentence is concerning – an increase to premiums of 25% in year 2. If a Stepped premium, the increase in year 2 may be well in excess of 25%. What happens? The client complains, the policy lapses and the adviser cops a 60% write back! Offering such discounts for the first year only, post LIF indicates that some life companies still don’t get it and are living in the past. I’m sorry BT, but if you are serious about retaining policyholders, any premium discount would run well past the first 2 years.
I agree. This makes no sense…. for the adviser, for the consumer, nor for BT.
And yet….what the $$$$ flow in
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