Future Insurability – the essential ingredient to any risk plan.

By: Elmarie Samuel, FMI Product Specialist

Future insurability is a term that gets bandied about in the industry. It means different things to different insurers, and with all the restrictions hidden under a bed of terms and conditions, many advisers have become skeptical and choose to tread safer waters by steering clear of the myriad of potential benefits.

Unfortunately, this means that you may be missing an essential ingredient in the risk planning mix because your client’s needs at the start of their policy are not the same as at retirement. Their cover must be able to adapt according to their shifting needs throughout the term of their policy, and future insurability is the golden thread that provides for such agility.   

Your clients deserve flexible and tailored solutions that can evolve as life happens – through the ups and downs – with no restrictions, even if they’ve claimed or their health has changed. And that’s the essence of FMI’s Future Insurability – what you see is what you get. For example, in the event of any major lifestyle change, such as marriage, divorce, childbirth, adoption, death of a spouse or the purchase of property, FMI’s Change in Circumstances Option allows you to increase your client’s cover by up to 25%.

And they can do this even if they’ve claimed. Your clients have the option of increasing, decreasing, extending, reinstating or even freezing their cover to match their fluctuating income and needs.

Advantages to you, the adviser:

  • Customers want personalised solutions that resonate with them. They value transparent and authentic relationships, and products that offer solutions that address their individual needs. Future Insurability allows you to do this.
  • Offering a Future Insurability product that can adapt to an individual’s shifting needs, even if he/she has claimed before, goes hand-in-hand with the spirit of TCF – aligning your customer’s financial needs to their policy and updating that policy as their needs evolve, throughout the life of a policy, demonstrates your commitment to their needs before anything else.  
  • Adjusting a client’s policy in line with his or her needs is a sales opportunity as you’re able to increase cover, add new benefits or utilise FMI’s conversion options.  
  • FMI’s Future Insurability means an individual’s policy always matches their current needs, and therefore stays relevant and reduces any risk of lapse rates.

Future insurability is an often overlooked part of a life insurance policy and our hope is that by raising awareness, clients will avoid frustration when they need to update their cover by exercising this option, instead of going through full underwriting again.

To find out more about FMI’s Future Insurability, go to https://www.fmi.co.za/resources/documents/FMI%20Individual_Digital_website.pdf