Haven Life is a new online life insurance agency, offering a term life insurance policy that is underwritten by MassMutual (rated A++ by AM Best).* The entire Haven Life process is completed online. That includes calculating your needs, comparing quotes, completing the application, and, if approved, purchasing the policy.
Qualified, healthy applicants aren’t required to complete a medical exam to begin coverage.
I’ve not found any other reputable insurance provider that offers immediate coverage on a medically underwritten policy, done 100% online.
Do You Need Life Insurance?
Life insurance comes in a few different flavors. There are various whole life policies, which combine life insurance and an investment component and coverage lasts for a lifetime. Whole life policies often carry significantly higher fees, and, I believe only make sense in specific situations.
Haven Life only offers a term life insurance policy. Term life insurance is one of the simplest and most affordable types of life insurance. Monthly premiums are much lower than premiums for whole life insurance, there are no confusing investment features tied within the insurance coverage, and the policy provides coverage for a specified period of time (typically 10-30 years).
There are no surprises with term life insurance, and the process is simple to understand: You pay a monthly premium for coverage. If you pass away during the coverage period, the life insurance policy pays a sum of money (called the death benefit) to a person of your choosing (called the beneficiary).
The death benefit paid to your designated beneficiary could be used toward a number of needs:
- To help replace your annual income that your family used for living expenses.
- To help settle outstanding debts that you leave behind so that your family is not burdened with them (including a mortgage, student loans, car loans, personal debt, etc.).
- To help your spouse or children pay for educational expenses or other important expenses.
- To cover burial expenses and other mortality related costs.
If you continue living beyond the specified coverage period, the insurance coverage ends. You stop paying premiums and are no longer entitled to a death benefit.
The Haven Term Policy
Some life insurance providers allow you to apply online, but you must work with an agent and complete a medical exam before you can find out if you’re approved for coverage. Haven Life does things differently to cater to people who prefer online-based services. After submitting your online application, you receive an immediate decision. If you are approved, you can purchase the policy and begin coverage right away. You don’t need to wait several weeks to find out if you’re approved, as you do with the traditional process.
Qualified, healthy applicants don’t need to take a medical exam to finalize their policy. Haven Life is the only company to offer this on a medically underwritten policy. For most life insurers, a medical exam or a phone interview is required in order to finalize coverage. Haven Life is able to offer this because its underwriting platform analyzes the information already provided in the application process to come to a decision. Once an application is submitted, you’ll be notified on whether or not a medical exam is needed to finalize coverage. If a medical exam is needed, you’ll have 90 days to take it.
Instead of relying on commissioned insurance agents, Haven Life is able to offer a direct sold term insurance product that is unlike anything else on the market. The Haven Life team also has customer support available by chat, phone and email, if there are questions along the way.
Haven Life provides an instant online decision on policies up to 30-year term lengths and $1 million dollars.
Currently, Haven Life offers term life insurance policies to residents of 48 states. Haven Life is not yet available in California and Montana.
They are expanding coverage to these states in upcoming months.
Reviewing the Haven Life Insurance Process
To help readers understand the process, I went through the Haven Life quote online.
Most individuals will want to start by calculating your life insurance needs. To determine your needs, Haven Life asks the following:
For the inputs that I specified (a hypothetical 32 year old male), Haven Life recommended a 20 year, $850,000 term policy. If you proceed, you will then be asked about your current health status.
At this stage in the process, Haven will provide you several different life insurance options. You can also compare the Haven Term quote to the pricing of other top-rated insurers by clicking the “Compare Companies” link near the bottom of the page. Here is how that looks on the Haven Life site:
I received a quote with an estimated cost of $37.17/month for a 20 year, $850,000 term policy. Compared to other quotes that I’ve received, that is competitive pricing.
Skipping the Needs Calculation
If you already know your coverage needs, you could also start by getting a quote on coverage:
Acquiring a quote requires you to input the following information:
- Zip code
- Health status
- Tobacco use
- Death benefit amount
- Length of the policy
It then asks you to create a login to proceed in your application. That means entering your email and creating a password.
After inputting my email and password, I entered the full application page:
On the insurance application, I was asked the following questions:
- Purpose of the insurance policy (to financially protect my family)
- Name, date of birth, height, weight, citizenship, current address
- Employment information and Income
- Detailed information about driving record, criminal record, and medication use
- Information about my family’s health
- Detailed information about my health
Using the information provided in the application, Haven Life also requests your permission to access additional third-party databases. This is done in real-time, which is how Haven Life is able to offer a decision immediately, unlike other insurance companies. The third-party databases include things like prescription drug history, motor vehicle records, and some information from the Medical Information Bureau. Armed with all this information, Haven Life is able to provide you with an offer of insurability and a premium rate.
If you are high risk, you could be denied coverage, or the Haven Life team may need to request a medical exam before they can offer coverage. If you are moderate risk, your estimated quote could increase, unless you claimed an appropriate health classification when you were getting an initial quote. For example, if you put average health instead of excellent health, knowing that you wouldn’t get classified as the healthiest person. If you are approved and satisfied with the quote you receive, you can e-sign all of the documents on the spot, and your coverage will begin immediately.
You still are required to complete the medical exam, which Haven Life helps you schedule at your convenience, but if you answered the application form honestly, the quoted monthly premium should remain similar.
Another great feature offered by Haven Life, which I briefly mentioned above, is true transparency. Haven Life provides an easy comparison to the quotes and policies from multiple other top-rated insurance providers. Should you choose to go with one of the other providers, you will be directed to their site to begin the application process.
For me, that last point cannot be overstated. If you feel like the Haven Term policy is not a good fit, they provide a direct link to competitors. Clearly, Haven Life believes that their product is top notch, or they would not provide such information.
Haven Life is offering a quality term life insurance product. Their unique online process is unlike anything else on the market, and is highly recommended by their customers.
If you are in the market for life insurance, consider grabbing a free quote from Haven Life. It’s done completely online, without sales calls. After inputting your information, you can make an informed decision on the spot, and obtain immediate coverage if approved. No other life insurance product currently offers that capability.
This post is sponsored by Haven Life. Opinions are my own.
*The rating is as of January 15, 2017 and is subject to change. MassMutual has received other ratings from different rating agencies.
Haven Term is a Term Life Insurance Policy (DTC, ICC14DTC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111 and offered exclusively through Haven Life Insurance Agency, LLC.