A new life insurance initiative is rewarding users who exercise, eat healthily and have regular health check-ups with lower premiums and discounts on items such as movie tickets.
The AIA Vitality programme, which is only available to existing AIA Australia clients for an extra $10 per month, provides clients with discounts and rewards depending on the number of points they earn and their annual status level.
Russell Cain, chief executive of life insurance comparison service X-Life, told Wealth Professional
while a lot of programmes “come and go”, this is the most progressive he has seen.
X-Life is one of the advisers launching the service and is currently promoting it to clients.
There are two ways to gain points, says Cain. “Firstly, it’s about better knowledge of your health.
"When you join AIA Vitality you fill out an online questionnaire, and then every time you update your information when you have a flu jab, dental check-up, Pap smear, or mammogram etcetera, it gives you points. You also get points when you go to a pharmacy and have blood sugar or blood pressure tested.”
Customers must provide receipts as proof.
The second way is by exercising and eating healthily. Customers must provide proof of the exercise, through smartphone or pedometer daily readings, or by joining up to Anytime Fitness, which have partnered with AIA.
People can gain points through healthy eating, but the only food that counts is that bought from Aussie Farmers Direct, from which they must provide receipts.
As it is currently a pilot programme, the companies AIA partnered with may change in future, said Cain. “I’m not sure how it will pan out.”
The more activities a client participates in the more points they can earn each year, improving their status level – bronze, silver, gold and platinum – and giving discounts of up to 35% at partnered companies, such as cheap Hoyts tickets.
This status level is then taken into account on the policy anniversary. Improvements in status level will give further discounts, however a low or reduced status might lower a previous discount.
Members can also receive cash back on the premiums paid every fifth year, ranging from 2% to 10% of their annual premium, depending on their status levels over the five years.
The programme was launched by Discovery Health in South Africa and since then has been partnered with a number of life insurance companies in UK and US.