Sainsburys Insurance
"Would you like to point to your life insurance, sir?"
There are many reasons to consider buying life insurance, depending on age, financial and family commitments, and a host of other reasons, but now Tesco and Sainsbury's have introduced another – the points of their programs store loyalty.
Tesco offering Clubcard holders of record 2,000 points, and Sainsbury's is offering 5,000 points nectar, incentives worth £ 20 and £ 25 respectively. The decision to link the sale of life insurance in a promotion it has divided opinion. One who can see the benefits the company CBK principal insurance Chadborn Peter who said: "As a consumer, would be automatically suspicious of anything they need an incentive to sell, but this could be a shrewd move by Sainsbury's and Tesco. "
However, Lifesearch spokesman Matt Morris believes that the insurance of the sale of life so could negatively impact the industry. He believes that people who buy insurance after they have been influenced by 'tricks' such as loyalty points can be sold inappropriate policies, and therefore ultimately, think less about the industry. He is particularly concerned by the fact that none of the major surface offers protection advice. He said: "Customers who bought this way are doing it through a channel so reckless and both could be missing out on a very important insurance as income protection. In some cases the buyers would be better to take out two policies and put them on trust. Any purchase so you can not get the advice they need. "
Other concerns of experts that include supermarkets are only commoditising life insurance , and they may be taking business away from others in the industry. By focusing the client on the price Chadborn believes that reduces the life insurance and the whole plan. Most experts agree that the most important areas to focus on life when buying insurance are the quality of politics and what is right for individual. They say the issues should be secondary to price when deciding on life insurance, and certainly the granting of incentives such as loyalty points should only considered after everything else.
As they say, the proof of the pudding is in eating, but experts are keenly watching the adoption of life insurance products where no advice is given, and in which the incentive is announced supermarket loyalty points. Tesco and Sainsbury's is the attraction fees profit, but at what cost to their customers?
About the Author
Andrew Regan is an online, freelance author from Scotland. He is a keen rugby player and enjoys travelling.
