Consumers increasingly are shopping for life insurance policy online, according to research by life insurance industry groups Limra and Life Happens.
The groups’ 2022 Insurance Barometer study found that with the lingering effects of Covid, 31% of consumers said they are more likely to buy a policy online.
While established companies are responding by setting up digital platforms to make life insurance easier to research and purchase, a growing number of web-based companies have cropped up over the past few years, and many of them have attractive features such as not requiring medical exams and offering quick decisions on applications, according to Insure.com, a provider of performance marketplace technologies and services to the financial services and home services industries.
The editorial staff at Insure.com analyzed several of the newer, online life insurance companies and created a list of the top ones based on factors such as the ease of the application process, options for other types of insurance policies, instant approval, prompt customer service response, and the option of adding riders on to policies for an additional fee.
“Shopping for life insurance online is a quick and easy way to make sure the family is financially covered following a death,” Nupur Gambhir, managing editor of Insure.com, said in a statement. “Our list of the top online life insurance companies is meant to make the buying process even simpler, so applicants can spend less time online and more time with the people they love,” she said.
“There’s no one-size-fits-all choice when choosing insurance of any kind,” Gambhir added. “This guide can assist in narrowing it down to the best fit for the consumer’s particular needs.”
Here is Insure.com’s list of the top digital life insurance companies, including the pros and cons of each.
Bestow
Bestow uses its own technology to offer customers life insurance policies online. It offers 10- to 30-year term policies up to $1.5 million in coverage for consumers ages 18 to 60.
Pros:
• Delivers a quick and easy application process.
• Offers immediate coverage with no waiting period.
• Provides a live chat service.
Cons:
• Does not offer riders.
Ethos
Ethos provides term life up to $2 million and whole life coverage up to $30,000 for anyone between the ages of 20 and 65.
Pros:
• Quick application process.
• Offers complimentary estate planning services for policyholders.
• Offers choice between simplified issue and fully underwritten policies (no exam, but more medical questions).
• Policyholders can extend coverage at the end of the term.
Cons:
• Lengthy application process for fully underwritten policy.
• Getting a quote requires a lot of information and is time-consuming.
Fabric by Gerber Life
Fabric by Gerber Life is owned by Western & Southern Financial Group – which also owns the Gerber Life insurance brand. The company offers 10- to 30-year term policies from $100,000 to $5 million. It also offers online tools for creating wills and organizing finances.
Pros:
• Offers complimentary wills for the policyholder and their spouse.
• Provides other financial services, such as 529 plans.
• Fabric app can be used to manage financial plans, including any important financial and legal information.
Cons:
• Chat service does not always provide immediate assistance during normal business hours.
Haven Life
Haven Life offers a range of term policies up to 30 years with up to $3 million in coverage for those under the age of 64. The company also offers disability and annuity products.
Pros:
• Prompt customer service response.
• Applicants can also purchase disability insurance and annuities.
• Accelerated death benefit rider available.
• Policyholders can access several living benefits, including virtual workout classes.
Cons:
• Some applicants may be ineligible for Haven’s no-med option and will have to take a medical exam.
• Medical exam required for anyone buying more than $1 million in coverage.
• The guaranteed no-medical-exam option only offers up to $500,000 in coverage.
Ladder
Ladder offers up to $8 million in 10- to 30-year terms. People are allowed to adjust their coverage up or down as their lives change – a process called “laddering.”
Pros:
• Instant approval.
• Well-known and trusted.
• Application is easy to resume if you leave the page.
Cons:
• Customer service isn’t always available during business hours.
• Online chat agents respond over email rather than within the chat.
• No riders offered
Lemonade
Lemonade offers from $50,000 to $1.5 million in coverage for term lengths between 10 and 30 years. The company also says that if you have an active life insurance policy with another insurer and find that Lemonade better suits your needs or budget, they’ll help you switch companies.
Pros:
• Offers other types of insurance policies.
• Easy-to-use mobile app.
Cons:
• Cannot get a life insurance quote without going through the application process.
• Not available to applicants over 60½.
• Available only in 27 states.
SoFi
SoFi offers policies with between $100,000 to $8 million in coverage. The company also offers its customers estate planning services, which includes drafting a will.
Pros:
• Offers banking, investing, student loans and supplemental estate planning services.
• Offers high coverage amounts (up to $8 million).
• Application only takes a few minutes.
• Instant approval.
Cons:
• Requires an application to get an initial quote.
• No riders are offered.
Vantis Life
Vantis Life is a wholly-owned subsidiary of Penn Mutual Life Insurance Co. Vantis offers $50,000 to $2.5 million in term life coverage and $50,000 to $2.5 million in whole life coverage.
Pros:
• Offers other types of life insurance coverage, including whole life.
• Riders can be added on to policies for an additional fee.
• A charitable giving rider can be added on at no cost.
• Policies available to people up to age 70.
Cons:
• Some applicants may need to take a medical exam.
Wyshbox
Wyshbox offers anyone between the ages of 18 and 45 coverage of up to $2.5 million. Policy length is flexible from two to 35 years. All plans offer the option of extending coverage until your 65th birthday.
Pros:
• Has a coverage calculator to help you figure out your life insurance needs.
• If you need more coverage later in life and in good health, you can add it on without paying more.
• Application takes under 10 minutes.
Cons:
• Chat is only available Monday through Friday, 9 a.m. to 5 p.m. ET.
• As a new company, there is not much third-party information available.
The full report can be viewed here.
