For Haven Life's Plus rider, how should we weigh adding new wellness benefits versus keeping the add-on cost low for policyholders?

Introduction

The trade-off we're examining today is how Haven Life should balance adding new wellness benefits to their Plus rider against keeping the add-on cost low for policyholders. This scenario touches on the core challenge of enhancing product value while maintaining affordability. I'll approach this by first clarifying key aspects, then analyzing the trade-off from multiple angles, and finally providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Haven Life is a life insurance provider targeting younger, tech-savvy consumers. Could you confirm if this is correct, and if there are any specific market segments we're focusing on?

Why it matters: Helps tailor the solution to our target audience Expected answer: Confirmation of target demographic Impact on approach: Would influence the types of wellness benefits considered

• Business Context: Based on the industry trends, I'm thinking wellness benefits might be a key differentiator. How does this initiative align with Haven Life's current strategic priorities and revenue model?

Why it matters: Ensures alignment with overall business strategy Expected answer: High priority, aimed at increasing policy uptake and retention Impact on approach: Would justify more investment in wellness benefits if it's a core strategy

• User Impact: Considering the nature of life insurance, I'm assuming policyholders might not interact with the product frequently. How often do users typically engage with the Plus rider benefits?

Why it matters: Helps determine the potential impact of new wellness benefits Expected answer: Low to moderate engagement Impact on approach: Would influence the type and frequency of wellness benefits offered

• Technical: Given the potential variety of wellness benefits, I'm curious about our technical capabilities. What's our current infrastructure for integrating and managing third-party wellness services?

Why it matters: Determines feasibility and scalability of adding new benefits Expected answer: Existing partnerships with some limitations Impact on approach: Would affect the selection and implementation timeline of new benefits

• Resource: Considering the potential scope of this initiative, I'm wondering about our team capacity. Do we have dedicated resources for wellness benefit integration and management?

Why it matters: Influences the scale and timeline of implementation Expected answer: Limited dedicated resources Impact on approach: Might necessitate a phased approach to adding new benefits