Ladder Life Insurance is a FinTech insurance company that was founded in 2015. The company operates entirely online, and exclusively sells term life insurance policies in all 50 states. Ladder’s modern approach to life insurance prioritizes a streamlined application process, flexible coverage and affordable policies.
Ladder Life is a unique insurance provider, and it suits individuals who prefer a digital insurance experience. However, the company has strengths and weaknesses. Keep reading to learn more about Ladder life insurance policies and whether this provider is right for you.
Ladder life insurance
Ladder life insurance can be described as innovative. Prospective customers fill out the online application in minutes and, if eligible, can get coverage instantly. Most individuals do not need to take a medical exam. Another perk of Ladder Insurance is that policyholders can “ladder” or adjust their coverage as needed over the course of their term. Policyholders can increase or decrease their coverage through their online customer account, without ever needing to work with an agent.
Types of life insurance policies offered
Ladder is a modern-day insurance company that appeals to many consumers, particularly young people who are considering life insurance for the first time. But the coverage is extremely limited. Currently, Ladder Insurance only sells term life insurance policies. There are no permanent life insurance options.
Additionally, Ladder Life Insurance does not underwrite its own insurance policies. Ladder’s policies are issued by Allianz Life Insurance Company of New York for policies written in New York State, and Fidelity Security Life Insurance Company for policies written in the other 49 states. However, both insurers have excellent financial strength and longstanding expertise in the insurance industry.
Term life insurance
Term life insurance offers limited coverage for a specific period of time. Ladder’s term life insurance policies are available in 10-, 15-, 20-, 25- or 30-year terms. This type of insurance is a good option for young families and healthy individuals who are looking for affordable coverage. Anyone between the ages of 20-60 is eligible.
If the policyholder passes away during the term, their beneficiaries receive a guaranteed tax-free death benefit which can be used for anything. At any time, the policyholder can increase or decrease their coverage limit based on their family’s needs.
Although Ladder Life Insurance does not offer permanent life insurance policies, policyholders have the option to renew their term policy for a certain period of time after the original term ends. However, renewing a term life insurance policy will usually increase the premium.
Reasons why Ladder Life is a great option
Ladder Life is a great option for young, healthy individuals who want an affordable term life insurance policy. The company’s digital-forward approach makes it easy to apply for coverage and purchase a policy online. For most applicants, there are no medical exams, waiting periods or strict requirements.
We recommend Ladder Life Insurance to people who are buying life insurance for the first time. The company has an online coverage calculator that makes it easy to figure out how much coverage to purchase. Ladder also has a refer-a-friend program, where policyholders can earn up to $1,000 for referring new customers.
Another perk of Ladder is that the company seems to have good customer service. Policyholders and prospective customers can get in touch with a service agent via phone, email and live chat. And because its agents are salaried employees, rather than commissioned agents, customers can feel confident about the service they are getting.
The obvious downside of Ladder Life Insurance is that it does not offer permanent insurance policies. It is also not a good option for seniors who are over 60 years old. If you are looking to buy a term policy and eventually convert it to permanent coverage, it is best to find an insurance company that offers both types of insurance.
Ladder Life insurance ratings, reviews, customer satisfaction and complaints
An internet search for “Ladder Life Insurance reviews” will bring up only a handful of results. The company is not rated by J.D. Power or the National Association of Insurance Commissioners (NAIC), and it does not have a Better Business Bureau (BBB) page.
Because Ladder does not underwrite its own life insurance policies, the company is also not rated by AM Best. However, its partner companies have good financial strength ratings. AM Best gives Allianz Life Insurance Company of New York an A+ rating, and Fidelity Security Life Insurance Company has an A rating.
Frequently asked questions
What is the best life insurance company?
The best life insurance company is different for everyone. It depends on factors like the type of coverage you want, how much coverage you need, your age, your health and where you live. However, some of the highest-rated life insurance companies are MetLife, Northwestern Mutual, State Farm and Prudential Financial.
How much life insurance do I need?
The amount of life insurance you should get is based on your current financial situation and your family’s needs. Start by tallying up your expenses and debts, and subtract that number from your income. As a general rule of thumb, you should have enough life insurance coverage to fill the gap.
What is the difference between term and whole life insurance?
Term life insurance offers coverage for a specific period of time, whereas whole life insurance offers permanent coverage that lasts for your entire lifetime. Additionally, term life insurance does not have cash value, but whole life policies usually do. The last major difference is price. Because term life insurance offers limited coverage, the premiums are cheaper than whole life insurance.