Are life insurers’ web-based accelerated underwriting programs working the way the insurers want?
One possible clue: Haven Life, a web-based insurance agency affiliate of Massachusetts Mutual Life Insurance Company, is increasing the maximum amount of life insurance coverage available through the site.
The coverage maximum is now $2 million, up from $1 million.
Haven Life managers report that a healthy 30-year-old woman may be able to buy a 20-year, $2 million policy through the site for just $51 per month.
There are two signs, however, that underwriters put on some guardrails.
One is that consumers have to be under the age of 60 to apply for $2 million in coverage through the web.
A second is that consumers applying for more than $1 million in coverage will have to make contact with the brick-and-mortar world: They have to undergo an in-person paramedical exam.
“The exam is free, takes about 20 minutes and can be scheduled at a time and place of an applicant’s choosing,” Haven Life says.
—Read 5 Ways Independent Life Agents Can Start Digitizing on ThinkAdvisor.