Advisors who believe their clients will do their utmost to better their health in exchange for a minimum 10% discount on their life insurance premiums can now sell them a new product through Manulife.

Manulife has partnered with Vitality, an international firm that has created an incentives-based wellness program to boost healthy behaviours, such as regular physical activity, seeing a dentist once a year and taking online educational courses.

On sale today

The Vitality product, which goes on sale today, comes during a 30-year low in household purchases of life insurance, Rob Hollingsworth, vice president and head of insurance sales at Manulife, told a recent advisor briefing.

Hollingsworth said that while infectious diseases were the big risk factors 20 years ago, the biggest risks these days are lifestyle choices.

Keeping score

The program is based on a point system of bronze (0 points), silver (3,500 points), gold (7,000 points) and platinum (10,000).  While anyone who buys a Vitality life insurance product will get an automatic 10% discount, they can achieve greater reductions in price if they reach the platinum level when they are screened on the policy anniversary date.

The product is open to clients who buy a T-20 or T-65 Vitality life insurance product with coverage of $500,000 to $20 million. While they receive the 10% discount, they also pay a $2 a month premium for Vitality, said Michael Dawson, Manulife’s product director of retail sales.

Dawson said if a client receives 3,500 points a year or less, premiums will rise annually to the point where they hit a ceiling. But he said that in the end, the policy will not cost more over 20 years than had the client purchased the same level of coverage and term without Vitality – except for the $2 a month premium.

Premium floor

There is also a premium floor for those who continue to post platinum points.

Clients who sign up for the product receive a list of personalized health goals, some tips and a free Garmin to track their progress.  Clients’ health habits are screened once a year.

Expects dramatic impact

Dawson said Manulife expects Vitality products to have “a dramatic impact” on the insurer’s competitive position in the marketplace. Manulife’s U.S. unit, John Hancock, brought in Vitality products in April 2015.

Vitality products are also sold to life insurers in the United Kingdom, South Africa, China, Singapore and Australia.