Fidelity's Ladder Life Insurance: What You Need To Know

Ladder Life Insurance Company is an insurtech startup that offers a fully digital online life insurance experience. The company acts as a broker, providing direct term life insurance with policies backed and issued by Fidelity Security Life Insurance Company, and Allianz of New York. Ladder Life's unique selling point is its ability to allow customers to ladder their insurance needs, increasing or decreasing their coverage as their life circumstances change. The company was founded by Jamie Hale, who was inspired to start the business after his father's death, which left his mother unable to care for her children. Since its launch in 2015, Ladder Life has enjoyed rapid success, issuing over $100 million of coverage in its first 100 days.

Ladder Life Insurance Company Review

Ladder Life Insurance offers a 100% digital application process for term life insurance policies under $3 million. Coverage can extend up to $8 million, but anything over $3 million requires a medical exam. The company was founded in 2015 and offers its services nationwide.

Pros

• Policies under $3 million don't require medical exams
• Provides convenient digital platforms for managing and applying for policies
• Partner underwriting companies rated A (Excellent) or better by AM Best

Cons

• Only offers term life insurance policies
• Only adults between 20-60 can apply
• No policy riders available for personalisation

Customer Satisfaction

Ladder was not scored in the 2023 J.D. Power Individual or 2022 Group Life Insurance Study. However, AM Best gave high marks to all four of Ladder's underwriting partners for financial strength, indicating that Ladder is likely able to pay out its claims.

Customer Feedback

Customer experiences with Ladder vary. Some commend the company for its affordability and backing by reputable companies, while others express frustration over rate adjustments and a lack of communication during the underwriting process.

Company Details

Customer service: 844-533-7206

Claims: [email protected]

Website: ladderlife.com

Mailing address: Ladder Financial Inc., 100 Forest Ave., Palo Alto, CA 94301

Ladder Life Insurance Pros and Cons

Ladder Life Insurance offers a streamlined, digital-first approach to life insurance, with policies that can be adjusted as your needs change. However, it has limited options, only offering term life insurance with no riders available for customization. Here is a more detailed look at the pros and cons of Ladder Life Insurance.

Pros

• Term insurance policies are well-priced, with coverage starting at $5 per month and instant coverage of up to $3 million available without a medical exam.
• The "Ladder down" option allows you to adjust your death benefit as your life circumstances change, with premiums adjusting accordingly.
• The company provides a convenient, 100% digital application and management process, with approvals for most users in as little as 5 minutes.
• Underwriting partners have high financial strength ratings with AM Best, indicating a strong likelihood of being able to pay out claims.

Cons

• Ladder Life Insurance only offers term life insurance and does not provide permanent life insurance options.
• There are no policy riders available for customization, which is a standard feature offered by many other insurance companies.
• The company is not rated by J.D. Power for customer satisfaction, making it difficult to gauge customer satisfaction.
• Some customers have reported issues with the responsiveness of customer service representatives.
• The maximum age for renewal is 75, while some competitors offer renewals for customers up to age 95.
• Ladder's rates for no-exam term life insurance are higher than some competitors.

Ladder Life Insurance Ratings

Ladder Life Insurance is a digital-first company that offers term life insurance policies to adults aged 20 to 60. The company was founded in 2015 and provides a completely online interface for prospective policyholders to obtain a life insurance quote, fill out an application, and secure coverage. Ladder's unique selling point is its "laddering" feature, which allows customers to adjust their coverage amount at any time without penalty, although increasing the coverage amount will likely result in a higher premium.

Ratings and Reviews

Ladder has not been rated by J.D. Power, making it difficult to gauge customer satisfaction. However, Ladder's underwriting partners have received high financial strength ratings from AM Best, indicating a strong likelihood of being able to pay out claims. These partners include Allianz (rated A+), Amica (A+), Fidelity Security Life (A-), and S. USA (A-).

Reviews of Ladder Life Insurance on Reddit and Trustpilot offer a mixed bag of experiences. Some customers commend the company for its affordability and ease of application, while others express concerns about a "bait-and-switch" tactic, with rates increasing significantly after the medical examination.

Pros and Cons

Pros:

• Policies under $3 million do not require medical exams.
• Provides convenient digital platforms for managing and applying for policies.
• Partner underwriting companies have strong financial strength ratings from AM Best.

Cons:

• Only offers term life insurance policies.
• Adults between 20 and 60 can apply, with coverage available until age 70.
• No policy riders are available for personalisation.

Ladder Life Insurance Quotes and Application Process

Ladder Life Insurance offers a 100% digital application process for policies under $3 million. The company was founded in 2015 and offers term life insurance nationwide through an online interface. This enables prospective policyholders to complete everything from obtaining a life insurance quote to filling out an application and securing coverage online.

Step 1: Select your coverage amount and length of term

Ladder provides options for term lengths between 10 and 30 years, with coverage amounts ranging from $100,000 to $8 million.

Step 2: Answer a series of questions to determine eligibility

At this stage, Ladder asks about your occupation, health history, family health history, driving record, and lifestyle choices to provide the most accurate quote.

Step 3: Receive a decision from Ladder

After submitting your application, Ladder will provide a quick decision. In many cases, they offer an immediate quote. However, in some instances, they may request a medical exam or completion of a "spit kit" before providing a final quote. It is also possible to be declined for coverage, as with any insurance company.

If a medical exam is required, Ladder will help schedule it at your convenience, either at home or at work, with no additional cost to you.

Step 4: Decide whether to accept the coverage

If you receive a quote, you can choose to accept the coverage right away. Setting up your account and providing billing information only takes a few minutes. Alternatively, you can decide to forego coverage and abandon the application at any time. Remember that Ladder offers a 30-day money-back guarantee if you change your mind after accepting coverage.

Ladder's streamlined and digital application process makes obtaining life insurance quotes and applying for coverage quick and convenient for prospective policyholders.

Ladder Life Insurance Competitors

Ladder Life Insurance is a California-based digital insurance platform that offers term life insurance policies. The company was founded in 2015 and provides a completely digital application process for policies under $3 million. For policies between $3 million and $8 million, a medical exam may be required.

While Ladder Life Insurance offers a streamlined approach to term life insurance, those seeking permanent life insurance or policy riders for customization may need to consider alternative providers. Here are some competitors to Ladder Life Insurance:

• Bestow: Bestow offers a similar digital experience, providing up to $1.5 million in term life insurance without a medical exam. This option may appeal to those who are older than Ladder's age limit of 60 or prefer a lower coverage amount.
• Ethos: Ethos utilizes algorithmic underwriting to provide instant approvals for term or whole life insurance through highly-rated companies. Ethos does not typically require medical exams, making it a good choice for those seeking a digital experience or whole life policies.
• Lemonade: Lemonade offers a 100% digital platform for purchasing up to $1.5 million in term life insurance. Additionally, they provide car and home insurance, making them an attractive option for those looking to bundle their policies. Lemonade also stands out for its philanthropic efforts, donating leftover profits to charities.
• Other Traditional Providers: For individuals seeking permanent life insurance or policy riders, traditional insurance companies may be a better fit. These companies often provide a wider range of policy options and allow for customization through riders. However, they may not offer the same digital convenience as Ladder and typically require medical exams.

Frequently asked questions