Ladder Life Insurance: Is It Worth The Climb?

Ladder Life Insurance is a relatively new company, founded in 2015, that offers a 100% digital approach to term life insurance. The company provides a convenient and streamlined process for purchasing and managing policies entirely online. Ladder's unique selling point is its adjustable coverage, allowing policyholders to ladder their life insurance amounts as their needs change. This flexibility is particularly appealing to those who want to customise their coverage without incurring additional fees.

However, Ladder's offering has limitations. The company only provides term life insurance and does not offer permanent life insurance options or policy riders for customisation. Additionally, Ladder has strict age requirements, with policies available only to adults between 20 and 60 years old.

Overall, Ladder Life Insurance is a good choice for individuals seeking a digital, flexible, and affordable term life insurance policy, provided they fall within the eligible age range.

Ladder life insurance pros and cons

Ladder Life Insurance is a relatively young, digital-first life insurance provider that offers term life insurance policies. Here are some pros and cons to help you decide if Ladder Life Insurance is a good choice for you:

Pros

• Digital Convenience: Ladder offers a 100% digital application and policy management process for policies under $3 million. This enables prospective policyholders to obtain quotes, apply for coverage, and manage their policies online conveniently.
• No Medical Exams for Policies Under $3 Million: Ladder's stand-out feature is the convenience of not requiring a medical exam for policies of $3 million or less. Instead, applicants need to answer basic health and lifestyle questions.
• Adjustable Coverage: Ladder's titular "laddering" feature allows policyholders to adjust their coverage amounts at any time during the term of their policy without incurring fees. This flexibility is particularly useful for those whose circumstances change over time.
• Affordable Coverage: Ladder advertises affordable coverage, with policies starting as low as $5 per month. The company's term life insurance rates are also relatively low compared to competitors.
• User-Friendly Platform: Ladder's platform is user-friendly and provides resources to help customers identify their optimal coverage based on their unique circumstances.

Cons

• Limited Policy Options: Ladder only offers term life insurance policies and does not provide permanent life insurance options such as whole life insurance. Additionally, Ladder does not offer riders or policy add-ons, such as accelerated death benefits.
• Age Restrictions: Ladder's policies are only available to adults between the ages of 20 and 60, with coverage available until age 70.
• Customer Service Concerns: While Ladder's digital platforms provide convenience, some customers have reported challenges in reaching representatives and experiencing delays in the underwriting process.
• Rate Adjustments: Some customers have reported instances of initial low rates increasing significantly after the medical examination, despite no new health disclosures.

Customer reviews of Ladder life insurance

A review on MarketWatch notes that Ladder's customer reviews are "mostly positive", with praise for the company's competitive rates and quick approval process. However, some customers have complained about non-responsive customer service, which is a significant issue for an online-only company.

On Reddit, users have shared both positive and negative experiences with Ladder Life Insurance. Some users commend the company for its affordability and backing by reputable companies, while others have experienced issues with rate adjustments and communication during the underwriting process.

Overall, Ladder Life Insurance reviews are mixed, with some customers having positive experiences and others facing challenges, especially regarding rate adjustments and customer service.

Ladder's underwriting partners

• Allianz Life Insurance Company of New York
• Amica Life Insurance Company
• S.USA Life Insurance Company
• Fidelity Security Life Insurance Company

All four of these underwriting partners have high financial strength ratings with AM Best. Allianz and Amica have the highest ratings of A+ (Superior), while Fidelity and S. USA are rated A- (Excellent).

Ladder's customer service

Reviews of Ladder's customer service on Trustpilot are mixed. While some customers praise the company for its excellent, compassionate, and straightforward service, others have complained about issues with their policies and difficulty communicating with customer service. One review mentions that communication with customer service is "a little bit challenging", but the issue was ultimately resolved. Another review from September 2023 highlights the "incredibly easy and straightforward registration process" and the user-friendly interface.

On Reddit, a user from April 2023 commends Ladder for its affordability and the backing of reputable companies. However, a December 2019 review on Trustpilot raises concerns about a "bait-and-switch" tactic, with low rates increasing significantly post-medical examination. Similarly, an April 2023 review describes a frustrating underwriting process with scarce communication.

How to file a claim with Ladder

Ladder offers a 100% digital way to get term life insurance. The company offers a 30-day trial period with a money-back guarantee and an adjustable death benefit, which is uncommon for term life insurance.

Step 1: Notify Ladder of the Policyholder's Death

First, Ladder will need to be notified that the insured has passed away. You can do this by sending an email to [email protected], providing the insured's full name, date of birth, and policy number, if you have it. Alternatively, you can fill out Ladder's online claim form.

Step 2: Complete the Necessary Claim Forms

Once Ladder has been notified, beneficiaries will be asked to complete claim forms and provide any additional required documents. These forms and documents will then be submitted to the insurance carrier, and Ladder will keep you informed of the progress.

Step 3: Wait for the Insurance Carrier to Process the Claim

The insurance carrier will process the claim, and they may contact you to request additional information or documentation. If the insurance carrier determines that it is a valid claim, it will make the payment to the beneficiaries.

You can also call customer service at (844) 533-7206 or email [email protected] for more information on filing a claim with Ladder.

Frequently asked questions