Two young entrepreneurs shake up the conservative life insurance industry with affordable coverage, sold online, to an often overlooked clientele: pregnant women.
Emma, a young fintech launched in August 2018 by two financial planners under the age of 30, offers an online life insurance sales service. The consumer fills out a questionnaire on their computer or on their phone and completes the transaction by speaking with an agent.
He gets life insurance coverage without having to undergo a medical or urine test in 30 minutes or less, including electronic signatures. Emma, who is also a life insurance firm, does business with several insurers.
“Many of our clients obtain coverage, but at a high price, or are postponed after childbirth, or outright refused,” explains Félix Deschatelets, president of Emma. Insurers balk as soon as they notice a 10-pound weight gain or certain health conditions typical of pregnancy, such as diabetes. ”
However, pregnancy often precipitates the decision to take out life insurance: clients realize the financial responsibility of a child.
A refusal is hardly reassuring.
“You don't need to add stress when looking for financial protection,” he continues.
Verification made with insurers who dominate the Quebec market: they do differ from requests (and sometimes refuse).
“To develop our product, we challenged certain actuaries; they realized that some industry practices were outdated, ”he adds.
Emma, whose minority shareholder is the insurer Humania (who acts here as an underwriter), therefore offers 65-year term life insurance, which can be converted into whole life insurance. Coverage ranges from $ 100,000 to $ 1 million.
Mr. Deschatelets mentions that the average monthly premium is between $ 15 and $ 30. The premium varies between $ 8 and $ 70 for coverage of $ 100,000. “This latest price is what one of our 37-year-old clients, with average health, pays for coverage of a million,” he says. I remind you that the average need for life insurance in Quebec is in the $ 400,000 range. “
He considers its pricing to be very affordable, since the 65-year coverage he offers is cheaper than standard 10-year term insurance. Obviously, pricing varies depending on age, state of health and lifestyle (smoker or not).
Emma also offers a rider (addition to the contract) of $ 11.25 for children already born, regardless of their number, without any medical examination. The fintech plans to launch a permanent life insurance product shortly, which will be combined with its 65-year term insurance.
- Shop around. Do business with a broker.
- Determine your needs: Do you want to fund your child's education to college? Pay the mortgage? Maintain the family lifestyle, including savings? Are you also looking for disability insurance?
- Ask yourself: Is my group insurance enough?
- From reading: IQPF • AMF