Ethos, the startup marketing a new life insurance product for people who perhaps haven’t really thought about life insurance, may have 99 startup problems but new uppercase ain’t one.
The company simply announced that it grown $35 million in a new round of financing.
That’s a pretty big number for a company in the normally staid life insurance nature, but bearing in mind that the company’s previous round of $11.5 million came from the family positions and investment firm of Hollywood and boasts fames like Will Smith’s Smith Family Circle; Robert Downey Jr.’s Downey Ventures; Kevin Durant’s Durant Company; Arrive, the Roc Nation investment company from Jay Z; and guiding Silicon Valley investment firm Sequoia Capital, folks maybe shouldn’t be too surprised.
Ethos sees its money by providing an online and portable sales path for insurance policies created by the Lincoln, Neb.-based life insurance company, Assurity Life.
Rather than exchanging permanent life insurance, which requires users to pay in perpetuity and which payers often make lapse or opt out over hour for a loss, Ethos greenbacks itself as a more equitable insurance provider by alone offering period life insurance, which policy-holders simply have to pay for a fixed period of time.
The term life insurance policies are less expensive than permanent life insurance offerings.
Given how little insight purchasers have into the process other coverage providers, which pay their salesman on fee, have incentives to slope the most expensive policies that customers often let lapse. It’s a win-win for the insurer, according to busines chief executive officer, Peter Colis.
” They’ll often convince people they need permanent life insurance. And they’ll generate a you a bait and switch premium that less than 10% of beings qualify for ,” he said.
By contrast, Ethos doesn’t pay its salesman on committee and costs are among the lowest in the industry — while the tribes that can receive the coverage are among the broadest.
It’s a new way to exchange an old product to a generation that doesn’t have much used only for the stereotypical coverage salesman and can’t stand the process of hours of paperwork. Applying population data, Ethos can offer insurance policies in approximately ten minutes based on a few fragments of purchaser information.
Based on those rebuttals, the company will calculate a price for a plan, depending on whether a possible policy-holder demands policy that would last-place anywhere from 10 to 30 years.
” We’re processing millions of apps and purchasers ,” said Colis.
Colis and his co-founder Lingke Wang have deep knowledge in the life insurance manufacture. The two previously founded Ovid Life, a company that generated a secondary mart for life insurance policies where policyholders could cash out of its own policy by selling them to ready buyers.
In addition to its cash investment, Ethos too managed to score a debt round from Silicon Valley Bank.
As a result of the investment, Accel partner Nate Niparko will join the Ethos board of directors and GV General Partner Tyson Clark will become an advisor to the company’s board.
It’s no surprise that jeopardize investors are becoming more interested in the insurance industry. Startup corporations have raised billions and have participated several departs once as insurers try to shore up their defenses against incumbents in the industry that are also — backed by venture capitalists. Indeed, many insurance companies have set up their own funds to invest in new technologies before they grow “disrupted”.
Read more: feedproxy.google.com