Stuart White, State Manager, Queensland, walks us through the three target customer segments for MetLife Protect and uses case studies to show how the modular product and optional Extras cover work in practice.
How does MetLife Protect work for the key customer groups: young families, SMEs and wealth accumulators?
Firstly, an adviser could have someone who sits in all three categories or equally, they could have someone who’s just in one or two categories, so each customer is not going to necessarily be exclusively relevant in just one category.
The beauty of MetLife Protect’s optional Extras Cover is that it allows advisers to simplify the process of looking at a client’s situation by offering only the features and benefits that are relevant to them. And not only have we simplified the features and benefits for clients and advisers, but we have also made it very easy to decide which packages are relevant to certain client types.
Here are three case studies that show just how well MetLife Protect works for each group.
Case Study 1: Wealth Accumulators
- Likely to have debt on one or more properties.
- Cash flow can be quite tight even if they are on a high salary.
- Age varies but typically aged between late-20s to mid-50s.
The Extras Cover most relevant to this group is Home Loan Extras, attached to Life Cover.
This provides a lump-sum payment should a customer suffer from a specified event (e.g. bone fracture or a dislocation) or an even more serious event that leaves them temporarily unable to work (e.g. burns). This is over and above the Life Cover and the Income Protection they may already have in place.
Also available is severity-based trauma product for cash-flow sensitive customers. One of the major advantages is that they can have the top level of cover (by adding the Individual Extras Cover) but if they are cash-flow poor, they can use the severity-based trauma products to lower their premiums. The option of the Individual Extras Cover allows an adviser to have a good trade-off discussion when the client starts pushing back on price: in other words, there is an option to reduce their premiums that is not necessarily reducing their sum insured should the worst happen, which is typically the only option available.
And, in the event the customer passes away, their family (or beneficiaries) can instantly access $20,000 to help with any debts while they grieve – so that’s one less thing they need to think about during an already difficult time.
Case Study 2: Young Families
- Share many of the characteristics of the Wealth Accumulators, but have young children under 18 years old.
- Can be a single or two parent family.
- Have reasonable mortgage debt.
- Aged between 35 to 50 years.
Like Wealth Accumulators, Young Families may wish to add Home Loan Extras to their Life Cover. However, as parents of young children, we’ve also created additional Extras Cover that may appeal directly to them and these are Family Extras and Provide & Care.
Family Extras, which is attached to Trauma Cover, provides child trauma. This means that if a customer’s child is diagnosed with a serious illness, they will receive a lump-sum payment of up to 10% of the Trauma Cover. In addition, there is also assistance with travel expenses for hospital treatment within Australia, as well as assistance for immediate family who travel to lend a helping hand.
The Provide & Care Extras Cover, which is available through Income Protection, is designed to dovetail in with Family Extras. Should a customer end up in hospital themselves, there is a benefit to get someone in to help run the family household, including childcare assistance. It also gives customers the ability to take time off work should one of their children need to take extended time off school due to injury or illness.
Case Study 3: Small to Medium Enterprises (SMEs)
- Share many of the characteristics of both the Wealth Accumulators and Young Families, but own their own business.
- Age varies, but largely between 30 to 65 years.
The Extras Cover we’ve built for SMEs are in response to advisers who have told us they want to be able to look at their clients’ personal needs, as well as their needs as a business owner, without being hugely complex and time-consuming.
We’ve designed two Extras Cover specifically for SMEs, and these are Key Person Extras and Buy/Sell Extras.
Key Person Extras, which is attached to Income Cover, provides a whole raft of benefits with the biggest being business expenses – a simplified business expenses policy requiring no underwriting. It also includes a Day One Revenue Benefit which means that customers may not need to serve their wait period on their Income Cover to qualify for a claim. And, there’s also the ability to bring someone in to replace the business owner if they are unable to work for an extended period.
Buy/Sell Extras, which is attached to Life Cover, reimburses legal and accounting fees associated with executing a buy/sell arrangement. It also includes Life Event Increases, or the ability for the consumer to increase their sum insured as their business grows, without the need for underwriting. And, if the consumer passes away, there is an additional $20,000 advance payment of life proceeds.