By Phil Perry – Corporate Partnerships Manager and Matt Collings – Partnership Development Manager
Last year, we launched our Co-op Over 50 Life Insurance product with our partner, Royal London. This was one of several new insurance products we launched in 2020.
Our plans to launch new products are ambitious, now Co-op insurance has re-launched as a distribution business we’ll be working with partners to bring more products to customers and members. But we also need to make sure we’re always looking at our existing products bringing the best value and features to our customers and members.
We realised we could do some things better with our Over 50 Life Insurance product. When we launched it, one of the key features was our payout promise – where we would guarantee a payout even if the customer had missed a payment or stopped paying providing they had reached certain milestones in the policy. This was market leading but customers found it confusing rather than useful. It also meant the product didn’t offer as much value. So we’ve modified this promise to keep it simple and improve the value of our payouts. You can read more about the detail of the policy here.
There are lots of reasons why someone may take out over 50 life insurance and ways in which they would like to spend the payout, but having money to put towards a funeral is a common reason people take out this product.
Over 50 life insurance is often suitable for someone who’d rather pay a lower monthly payment or would like to give their loved ones choice on how to use the money, whereas a funeral plan is much better for those who want to know their entire funeral will be paid for and arranged when they pass away, but this sometimes comes at a higher price.
As a business with a Funeralcare and Insurance team it seemed a no brainer to get together and collaborate to tailor the product. We’ve added a Funeral Benefit Option (FBO) for people who specifically want to take out over 50 life insurance to help pay for a funeral. Customers can choose to add the FBO to their policy without any extra charge, which means when they pass away they can use the money from their over 50s policy towards a funeral with Co-op Funeralcare and they get a discount depending on the type of funeral they choose.
The next stage of this partnership will see existing customers offered this option to add on to their policy (at no extra cost) and work on our customer journey to make sure anyone who comes to us about an over 50 life insurance product or funeral plan can be directed to the other product if it becomes clear it would better meet their needs. Either way we’re giving members and customers more flexibility whilst making sure they and their loved ones have peace of mind in a way that works for them.
We’ve both enjoyed working together and with all the other colleagues from across Insurance, Funeralcare and Royal London who collaborated to make these changes happen. Previously neither of us knew much about the other areas of the Co-op or the people who worked in them. We’ve both learnt a lot through this project and understand more about our Co-op. We’re looking forward to continuing to build these relationships and hope there’ll be more opportunities to work together and use the expertise from other areas of the Co-op as we grow our new Life Services business (our business unit which combines Funeralcare, Insurance and Legal Services.)