Life insurance has traditionally been considered one of the more complicated and expensive insurance sectors to buy cover from. Invasive health tests and rafts of questions, as well as raised premiums liked to previous conditions and even the address of the customer, have resulted in a protection gap that has widened substantially over the last two years.
But the latest digital insurers are changing the journey by creating products that can be bought in minutes with a limited number of clicks, and also modified by the customer to better suit their needs.
A life insurance platform with a difference, DeadHappy is one of the UK’s most successful and up-and-coming insurtech platforms. The company, which launched in 2013 and provides customers with a uniquely humourous set of services, which include a wide range of ‘bequeaths’ that customers can choose from, or even the option to make their own statement. For example, policies give customers the option to pay off school fees, their mortgage or even have their remains launched into space, via a user-friendly interface that can create cover in minutes. The company markets itself by claiming differentiation. Its leading philosophy reads, “There are 8.5 million people in the UK that probably should have life insurance, but don’t. That’s because traditionally buying life insurance is complicated, inflexible, expensive, and brain-numbingly dull.”
One of the UK’s leading insurance providers, it's hardly surprising that Aviva has scored highly in terms of Life insurance offerings. Their flexible, cost-effective cover is aimed at several demographics and provides protection for families, leaving a lump sum, or paying off the mortgage to provide financial security. Cover is available from just £5 per month and customers answer around seven questions before a quote is granted. Policies include annual health checks, mental health counselling, and nutritional support, managed through the Aviva DigiCare+ smartphone app.
Vitality is a subsidiary of the Italian insurance giant, Generali, and has embraced the digital revolution by offering customers wearable technology solutions to help with health insurance policies, and by providing digital life insurance. There are two types of life insurance policies - term life insurance and 'whole of life' insurance. VitalityLife offers both term life insurance and 'whole of life' insurance, using the latest technologies to assess risk and premiums in the fastest and most frictionless way possible. As an incentive to new customers, VitalityLife is currently offering 40% off premiums for the first year of cover and also boasts a 99.6% payout rate on claims
Based in New York and founded in 2015, Lemonade is one of the world’s best-known and respected insurtechs. It offers a range of P&C covers, life insurance, and recently launched LemonadeCar. However, unlike other insurers and mutual companies, Lemonade does not offer retirement or investing services, nor does it sell permanent life insurance products. According to reports, Lemonade is a Certified B-Corp and a Public Benefit Corporation and follows best practices for disclosure, transparency, and social responsibility. The insurtech also differentiates itself from competitors by taking a flat amount of customer premiums as its profit after expenses. Lemonade then donates the remaining amount to customer-decided NPOs via its Giveback programme.
Based in New York, Haven Life Insurance offers Haven Life Plus - coverage with a bonus feature that allows eligible Haven Term policyholders access to more than $700/year worth of no-cost benefits. The company boasts a range of services including a fitness app offering thousands of workout options, digital end-of-life planning, an online secure vault for storing sensitive family documents, and a service that creates customised legally valid trusts and wills. Haven Life Insurance also averages 4.8 stars for customer satisfaction on thrid party review sites such as Trust Pilot.