We don't think there is a catch. We've thought long and hard about life insurance in its current state and tried to strip out the bad things and keep the good stuff. Here's our list:
- Protecting your loved ones' in case you die unexpectedly
- Plans fixed over many many years that nobody ever stays with because circumstances change
- Long application processes with loads of difficult questions
- 'Expert' advisors who tell you how much 'cover' you 'need' and who take big upfront commissions at your expense
- Complex language & complicated products with long lists of terms & conditions
- Dull and serious tone of voice, and never actually using the 'D-word', death
As you can see, we don't think there's all that much good about how things are done currently, so we've tried to reinvent life insurance. We think our product will be much better for most people, but there are 2 things we would like to draw your attention to:
- Your price will most likely increase every year. We prefer not to fix your price for a long period of time, because unless you keep the policy right to the end (which very few people do) you end up paying too much. Our price is based on the risk of you dying right now, which will increase with every year you get older. The average increase is less than 5%, and it will only increase due to the 'age effect', never due to us increasing your price to make more money.
- Your plan is not fixed for a long term, but comes with a renewable 'lifeline'. On average, people keep life insurance policies for only 5 years, so we figure a product fixed over 25 years, which will be pretty expensive, is not the best approach. Instead we give you a renewable 'lifeline' (of either 5 or 10 years, depending on the product). This is the amount of time we guarantee to keep you insured if you get diagnosed with an illness. Every year, we'll give you the opportunity to renew this lifeline for free, so that you always start each year with a good level of protection if there is a change in your health.
By introducing these 2 elements to the product, we are able to keep things cheaper and simpler. We think that makes our product different and more accessible for most people, but it's up to you to decide if it's for you.