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New Discovery Life clients could be penalised for not getting vaccinated

29 July 2021 8:20 PM
Tags:
The Money Show
Bruce Whitfield
Vaccination
Insurance premiums
insurance policies
life insurance
Discovery Life
Covid-19 vaccination
Riaan van Reenen
PayBacks

The Money Show interviews CEO Riaan van Reenen about Discovery Life's vaccination incentive scheme.

If you opt not to have a Covid vaccination, will your life insurance cost you more in the future?

Discovery Life has just announced that clients can now get higher PayBacks if they have been vaccinated.

"Being vaccinated against Covid-19 is now an additional consideration in determining life insurance premiums and benefits for new clients, effective from the 29<sup>th</sup> of July 2021."

"Clients with new polices who indicate that they are unwilling to be vaccinated may, unfortunately, be subject to higher premiums due to the increased risk."

RELATED: 'We're headed for a fourth and fifth wave if vaccine rollout is not speeded up'

Bruce Whitfield interviews Riaan van Reenen, CEO of Discovery Life.

Van Reenen describes the strategy as a powerful incentive.

What we've set out to do is to recognise that vaccinations significantly reduce the risk of contracting Covid and if you contract Covid, of getting severely ill and getting hospitalised.

Riaan van Reenen, CEO - Discovery Life

If you choose to get vaccinated... we will actually increase your PayBack available on qualifying policies to give you up to the full first year of premiums back into your PayBack fund...

Riaan van Reenen, CEO - Discovery Life

If you choose not to get vaccinated then we will underwrite you based on your underlying health conditions and depending on age, taking real life risk factors into account.

Riaan van Reenen, CEO - Discovery Life

Discovery Life is not taking any choices away from its clients, he says.

"It's really all about charging a fair price for the risk."

Whitfield raises the question of medical aid premiums being structured in the same way, especially in the case of an integrated insurance programme like Discovery.

Medical scheme premiums in South Africa operate on the basis of community rating, so it's unlikely that would make its way in there in the near future, in terms of the current framework.

Riaan van Reenen, CEO - Discovery Life

Listen to the conversation on The Money Show:


This article first appeared on CapeTalk : New Discovery Life clients could be penalised for not getting vaccinated




29 July 2021 8:20 PM
Tags:
The Money Show
Bruce Whitfield
Vaccination
Insurance premiums
insurance policies
life insurance
Discovery Life
Covid-19 vaccination
Riaan van Reenen
PayBacks

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