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Pandemic 'will minimalise life offerings'

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Life insurance products in the post-pandemic landscape will offer “very minimal benefits and features,” Centrepoint Alliance says, giving customers a chance to decide what they want in their policies.

Insurance Specialist David Spiteri says in a blog post he expects life insurance companies “to change the way in which their current product suites are designed”.

“They will be very basic; however, the client will have the opportunity to build their policy with additional features and benefits as an option.”

He lists as an example where change can be expected an income protection policy with the standard definition of disability.

“Customers would be offered a very plain product with the option to expand the standard definition to a three-tiered definition that most retail insurers currently have.

“This example will reduce premiums significantly and clients will only pay for benefits and features that they want added,” Mr Spiteri says.

He says the pandemic has triggered a greater interest in life insurance from consumers but for the wrong reason.

Most of the calls to advisers are from clients wanting to cancel or reduce the policies because they are worried about their jobs.