Best Online Life Insurance Providers

Insurance tech trends have made buying life insurance easier than ever. You can compare quotes and buy a policy online in just a few minutes. Learn more about these insurance trends and the best online life insurance providers. 

Quick Look: The Best Online Life Insurance Providers

• Best for Those Under 50 Years Old: Wysh
• Best for People With a Healthy Lifestyle: Sproutt
• Best for Adjustable Coverage: Ladder
• Best for Comparing Quotes for the Best Price: Policygenius
• Best for Young Families: Fabric

Here are Benzinga’s picks for the best digital life insurance companies: 

1. Wysh

Wysh offers online term life insurance that gives you the options you need when you don’t have much time to spend searching for coverage. When you get started on the Wysh site, you can:

• Answer a few health questions
• Avoid a medical exam
• Customize your policy
• Purchase coverage up to $2.5 million
• Reach the customer service team with ease

You can stick to your budget with ease, get the coverage you need and even learn about the types of death benefits you should choose. While policies are not available for those over 50, Wysh works very well for young buyers, parents who need quick coverage and those who are required to purchase coverage in a hurry. 

2. Sproutt

Sproutt connects you with insurance options based on your lifestyle. You start by taking Sproutt’s quality-of-life quiz, which not only assesses where you are but also gives you tips for improvement. It looks at a range of factors, including movement, sleep, emotional health and balance. 

From there, it connects you with insurance policies that are a good match based on your quality of life. You can buy term and whole life insurance through Sproutt, including simplified-issue and guaranteed-issue policies. 

3. Ladder 

Ladder provides affordable term insurance. It offers $100,000 to $8 million in coverage to applicants ages 20 to 80. You can complete the application in 5 minutes. What sets Ladder apart, though, is that you can easily make adjustments to your coverage, which Ladder calls “laddering.” 

You can increase your coverage if you have life changes that require more coverage, like buying a house or having a baby. You can also easily decrease coverage as you need less. For example, as you pay down the balance on your home or as your children finish college. It’s coverage you can adapt to your needs. 

4. Policygenius

Policygenius makes it easy to get quotes from multiple insurance companies. You answer questions about yourself and your situation, and Policygenius finds the best policies for you. 

Insurance companies evaluate your application in a process called underwriting. Sometimes they offer a higher rate than the one you were quoted.  

If you apply for a policy and the insurance company offers you a higher rate than the one you were quoted, Policygenius will also assist you in seeing if you can find a cheaper rate for the coverage at no extra cost. 

5. Fabric

Fabric is geared toward families with children. For many, buying life insurance is a part of financial planning, which also may include writing a will. Fabric offers affordable term insurance and a free last will and testament tool that you can use for planning. 

It also offers tools to help you map your financial accounts and collaborate financially. Fabric also offers 529 college savings plans and high-yield savings accounts. Overall, Fabric helps you manage your financial planning from one simple app. 

Definition of InsurTech

InsurTech is behind these top insurance providers, but what is it?

InsurTech is a combination of the words “insurance” and “technology.” It can refer to the technology companies are using to improve the insurance process. It can also refer to the companies employing this technology. 

InsurTech companies use data analysis, artificial intelligence (AI), blockchain, machine learning, chatbots and more to improve every aspect of the insurance process. This includes everything from getting quotes and buying insurance to the claims process. 

How InsurTech is Disrupting the Insurance Industry

Here are a few ways InsurTech is disrupting the insurance industry:

• Lowering insurance costs by improving the claims process with AI and machine learning 
• Using chatbots to provide quick answers to common questions 
• Using wearable activity trackers to offer users lower premiums and other bonuses 
• Allowing users to get multiple insurance quotes through one platform 
• Reducing the risk of fraud through blockchain technology 

Online Life Insurance Platforms vs Traditional Insurance

Both online and traditional life insurance provide term and permanent life coverage. Term insurance is straightforward coverage that’s in effect for the term of your policy. You may be able to renew the policy when the term expires, but you typically pay a higher premium when you renew. 

Permanent life coverage is intended to be in place over your lifetime. It builds up cash value, which you can borrow against or receive if you surrender, or end, the policy. Whole life and universal life are two types of permanent life insurance policies. 

Online life insurance platforms may have live-chat and customer-service representatives available by phone. Traditional life insurance may be sold directly by a company or through an agent or broker. Your agent or broker would be your main point of contact if you need assistance. 

Traditional life insurance companies are following in the footsteps of InsurTech companies. Many have developed apps and/or websites to make it easier to buy coverage. 

Ultimately, both options can provide you with coverage. It all depends on your preferences and needs.

For example, if you’re more comfortable working with a long-established company, or if you prefer bundling life with other types of coverage, you may prefer a traditional insurance company. 

If you prefer a quick and easy insurance experience, an online life insurance provider may be a good fit. Many online life insurance providers are backed by long-established reinsurance companies, which means they’re financially secure as well. 

Pros and Cons of Online Insurance Providers

Here are the benefits and drawbacks of working with a digital insurance provider: 

Pros

• Easy to buy a policy
• Easy to compare policies
• Better pricing due to technology
• Policies may go into effect instantly

Cons

• Less personalized attention if you need assistance
• Less personalized advice than you would find working with an in-person agent or broker
• May be challenging to find coverage if you’re not in great health
• Fewer bundling options (buying multiple types of policies for a discount)

Is an Online Life Insurance Policy Right for You?

If you’re in relatively good health, buying a policy online can be quick and easy. You can compare policies easily, and you may find inexpensive term life insurance as well as other options. 

Ready to learn more? Check out Benzinga’s insurance resources to get quotes and more. 

Frequently Asked Questions