While some insurance providers are turning to fintech to expand agents’ ability to offer financial planning, investment management and even cryptocurrency, at least one is looking to digitize how it sells actual life insurance.
Equitable, a financial services company that was previously owned by AXA Group, has partnered with fintech startup Bestow to launch an entirely digital term life insurance product. Called Term-in-10, the product will only be available through Equitable’s network of financial professionals, including financial advisors on its brokerage, Equitable advisors.
After working with an advisor to determine a client’s specific life insurance needs, Bestow’s technology lets clients apply for a policy entirely online. A medical exam is never required, and if the application is approved, coverage begins immediately, reducing a traditionally weeks-long process down to about 10 minutes while providing a more accurate risk assessment, according to Bestow co-founder and CEO Melbourne O’Banion.
“There are substantial advantages to using a financial professional and life insurance agent who understands the specific requirements each client needs to protect their family and provide them with a comprehensive financial strategy,”
- Dave Karr, chairman of the firm’s brokerage, Equitable Advisors.
This is Bestow’s first deal with a large financial services firm, and it will be the sole infrastructure provider for the entire sale and administration process — from application to underwriting to policy servicing. Launched in 2017, the fintech has raised $150 million in funding and successfully acquired Centurion Life Insurance. The company did not disclose how many clients it serves or its assets under management.
The company is trying to make life insurance more accessible to underserved families by selling directly to consumers, partnering with insurance firms and through financial advisors, O’Banion said. There are 102 million Americans who believe they need to buy life insurance or increase their coverage, according to LIMRA, but there has been a lack of digital innovation to help carriers reach the modern consumer, O’Banion said.