By Clyde Parsons Chief Innovation Officer at BrightRock
In today’s digitally savvy world, financial advisers have never had so many tools available to them to structure cover for clients in a way that covers them sufficiently and covers only what they need for as long as they need it. Financial advisers can also help their clients take advantage of added features that can assist them financially at life’s biggest change moments.
A perfect example of this is BrightRock’s needs-matched life insurance, which allows independent financial advisers and their clients to co-create cover solutions based on each client’s specific needs. For example, a client with children wants to ensure that they can provide for their children financially while they’re still studying and dependent on them. They want to make sure that their life insurance policy will pay out and assist if for any reason they, as the parent, aren’t able to take care of their children. This client will also not want to pay for this cover when their children are out of the house and standing firmly on their own financial feet, so at BrightRock, we structure cover only until this point. And when the parent doesn’t need that cover anymore, they can use that premium to buy cover that they may need more of at the time, such as critical illness cover. What’s more, they can do this without having to undergo medical underwriting.
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Structuring cover for clients like this makes sense from a cover and a premium perspective. But BrightRock does even more for clients who use our needs-matched cover. We automatically include change moment pay-outs on their policy, on retirement and when children are expected to become financially independent, depending on the cover that they’ve bought. This feature doesn’t get added to the policy only when the financial adviser remembers to do so, and there’s no premium that needs to be paid to have access. All clients have to do is structure their cover efficiently, and they’ll be in a for a pleasant financial surprise when their childcare needs cover ends, and at retirement.
The retirement change moment pay-out pays out a monthly amount for 10 years from the policy anniversary after the client reaches their selected retirement age. It will also increase each year, maintaining the purchasing power of those monthly payments in relation to inflation. For simply protecting their needs efficiently, clients could get a welcome boost during the early years of their retirement, easing financial concerns during that time.
The child change moment pay-outs are made for each child that’s listed for childcare needs cover – itpays out when each child gets to the selected cease age. This means that many clients would get multiple payments in addition to the retirement change moment pay-out.
BrightRock’s needs-matched cover and change moment pay-outs give our clients tailored financial solutions, with a firm focus on protecting them when they have financial dependants and providing additional payments at the end of the relevant cover.