Term Sales Through Web Program Take 8 Minutes: Exec

Susan Sachatello says typical online buyers appear to be first-time site visitors

Susan Sachatello (Photo: TruStage) Susan Sachatello (Photo: TruStage)

TruStage has been selling a new simplified-issue term life insurance product through a web-based sales and underwriting process, and an executive says performance looks good.

TruStage is the direct-marketing arm of CUNA Mutual, a Madison, Wisconsin-based carrier that sells insurance through credit unions. TruStage introduced its web-based simplified-issue term life program in June 2016, and it began actively marketing the program, which is one of the first of its kind on the market, in November.

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The company has already reported selling 6,400 policies through the program, with an average of about $50,000 in coverage provided per policy sold.

Susan Sachatello, a senior vice president at TruStage, said in an email interview that the average sale is taking less than eight minutes.

"This includes designating a beneficiary, answering the two health questions, requesting an authorization to allow a check of prescriptions, and providing contact and mailing information," Sachatello said.

Consumers who buy online answer two health questions. The application system then puts the consumers' applications through an entirely automated underwriting process.

TruStage has designed its website so that consumers can buy coverage entirely online, call a contact center, or ask a licensed agent to call.

"A small percentage" the website visits result on a call to a live agent, Sachatello said.

The conversations usually go well, because the callers have already done some research online, Sachatello said.

The program offers policies with death benefits ranging from $5,000 to $100,000, to applicants ages 25 through 69. The policies can provide coverage up until age 80.

--- Read Harnessing the Power of Digital: Are Life Insurers Up to the Task? on ThinkAdvisor.

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