Consumers like discounts — there’s no secret about that. And consumers shopping for insurance are no exception. Our recent survey revealed that nine out of 10 consumers (92 percent) would be motivated to maintain a specific weight level, and four out of five (81 percent) would be more likely to have an annual checkup, if offered a life insurance discount or incentive.1
So not only are discounts attractive to insurance shoppers, but discounts based on healthy behaviors are attractive as well. There is one catch: How those healthy behaviors are tracked and how the incentives are determined appear to make a difference.
In direct contrast with the positive results of our survey, a separate survey2 recently reported that 59 percent of respondents said they weren’t willing to wear a fitness tracker that reports to insurance companies, even if it meant potentially receiving a better premium. In that same survey, 77 percent of respondents said they were uncomfortable having their premiums fluctuate based on the results of their annual physical.
While wearables are becoming increasingly popular, the data gathered by these devices is considered personal. Accessing that data can easily be seen as an invasion of privacy, and an insurance policy whose premiums fluctuate based on behaviors tracked by a wearable device does not appeal to many insurance shoppers.
The good news: There is another way to reward wellness.
It’s been 10 years since we introduced the original wellness rider — Wellness for Life® — and, to date, we’ve issued more than 50,000 of these riders.
Wellness for Life gives owners of permanent policies discounts on insurance costs if they visit the doctor at least once every other year and manage their weight within a range determined at the time they purchase their policy. Going to the doctor at least once every two years qualifies them for level 1 Wellness for Life Rewards®. And if they maintain their weight within the range specified at policy issue, they move to level 2 and receive more rewards. No devices are required, and there are no fluctuating premiums — just discounts on the cost of insurance that can add up significantly over time.
We don’t collect, track or store any personal medical information. We simply ask the insured to verify they’ve been to the doctor every two years and have kept their weight within their personalized range (if they wish to qualify for level 2 rewards). Visit the doctor and send in the form — it’s that simple.
Our New Year’s resolution — wellness for everyone
While the movement to develop interactive insurance policies that rely on the use of wearables might be running into resistance, our goal is to remove barriers to behavior-based incentives. That’s why we’ve made it our New Year’s resolution to bring Wellness for Life to even more people. The Wellness for Life rider is now available at no charge on every eligible policy.
As other approaches add complexity, the Wellness for Life rider requires no wearables, and it delivers Wellness for Life Rewards in the form of discounts on the cost of insurance. It’s easy to understand and participation is simple.
With Wellness for Life, consumers can give their policy values a boost in the same way taking certain actions can boost health and happiness — and it costs them nothing.
To learn more about Wellness for Life, visit GlobalAtlanticLife.com/wellness
1. The Global Atlantic Wellness Survey was completed by Echo Research using an online omnibus methodology among a random sample of the general U.S. adult population. A total of 1,003 interviews were completed between July 23 and 25, 2018. The overall margin of error for this sample size is +/- 3.1 percent at the 95 percent confidence level.
2. Survey conducted by True Blue Life Insurance (as reported on insurancenewsnet.com), “Survey Results Reveal People Over the Age of 24 Are Uncomfortable Sharing Fitbit or Apple Watch Data With Life Insurance Companies to Get Better Rates,” Nov. 20, 2018.
Products and riders are issued by Accordia Life and Annuity Company, 215 10th Street, Des Moines, Iowa. Rider form number ULWFL-E14.
Wellness for Life® rider availability varies by state.
Products and riders are not available in New York.
Global Atlantic Financial Group (Global Atlantic) is the marketing name for Global Atlantic Financial Group Limited and its subsidiaries, including Accordia Life and Annuity Company, Commonwealth Annuity and Life Insurance Company, Forethought Life Insurance Company, and Global Atlantic Re Limited. Each subsidiary is responsible for its own financial and contractual obligations.