Most people don’t think about life insurance until they realize it’s time to buy a policy, and they begin the process with limited knowledge about what products are available, what level of coverage they need, and what represents a fair price.
This can make shopping for a policy an intimidating experience. It can also produce less-than-desirable results, as many companies are all too willing to sell you more insurance than you need, or sell you whatever will boost their commission or bottom line the most.
Thankfully, more and more life insurance companies are leveraging financial technology to provide a better, faster and more transparent process. In this Everyday Life review, we’ll take a look at one of those companies and explore what makes this relatively new firm a unique player in the field.
If you’re just starting to shop for life insurance, I strongly recommend reading this beginners’ guide to the process. It goes over the most important terms you need to know, and lists many of the best places to start looking for quotes.
With that in mind, let’s take a look at Everyday Life Insurance…
Everyday Life Review: Company Overview
Founded in 2018 by CEO Jake Tamarkin and CTO Dipali Trivedi, the Boston-based startup — which has a four-star rating on the consumer review website Trustpilot — is a new player in the field, serving as an online marketplace that recommends term life insurance policies that are customized to your needs.
Everyday Life’s goal is to combine the fast, seamless experience we’ve come to expect when buying financial products and services online with the personal guidance and customization that insurance agents provide to their clients.
Their view is that the process of shopping for and buying life insurance can feel outdated to younger customers, who are used to doing everything from investing to applying for a personal loan online (and in minutes). At the same time, that process can be confusing for first-time buyers, and a touch of personal guidance can be a big help.
As such, the company aims to blend new technology with time-tested customer service practices to provide a top-of-class insurance shopping experience.
When you buy life insurance through Everyday Life, the policy comes from Legal & General (which has an A+ rating from credit rating agency A.M. Best). Legal & General life insurance products are underwritten and issued by Banner Life Insurance Company which was founded in 1949 and is based in Frederick, Maryland.
About term life insurance: Everyday Life helps users buy “term” life insurance policies, which stay in effect for a set number of years (usually 20 to 30). If the policyholder dies within that period, the policy pays out to the beneficiary.
How the Buying Process Works
If you don’t know anything about how to buy life insurance, Everyday Life can be a good place to start. Because the company has invested heavily in technology, it has a quick, efficient online quoting process like those we’ve come to expect from the new batch of life insurance startups.
You’ll provide some basic demographic information, such as your age, gender, whether you have dependents, your state of residence, and your general level of health.
Then you’ll provide some basic financial information, including your gross income, your retirement and non-retirement savings, your amount of debt (if any), and whether you currently have life insurance. All of this takes about a minute if you have the figures handy before you start.
These figures are necessary for the company to generate a quote for a policy that provides a sufficient level of coverage. Without knowing things like your current income and debt level, it would be impossible to calculate how much money your beneficiary would need if you were to pass away.
So, based on the information you provide (as well as general population data), you’ll see a recommendation that shows how much coverage you need, how long the coverage should remain in place, and the cost per month. The quote is free and there is no obligation to buy.
At this point, you can run more quotes (for example, changing the term length from 20 to 25 years or increasing the coverage amount), move to the next step of the buying process, or call or use the live chat function if you have questions.
Two important notes:
- Everyday Life uses an accelerated underwriting process. This means a medical exam or phone call isn’t required. But, as with other carriers, only certain individuals qualify for accelerated underwriting. As a general rule, if you’re in good health and buying a reasonable amount of insurance (around $1 million or less), you’re more likely to be able to take advantage of this quicker buying process.
- Everyday Life gives you the flexibility to adjust your coverage down the line. When buying a policy through the company, you have the ability to adjust your coverage one time after purchase. This is ideal for those who need to increase or decrease coverage in the future, based on factors like having another child or needing a smaller policy.
If you’re ready to continue, provide your name and email address. To confirm your quote, provide your height and weight. You’ll be asked some questions about your family medical history, whether you’ve had two or more vehicle accidents in the past three years, if you use nicotine, have any DUIs, or have any history of alcohol or substance abuse. These questions are meant to assess how “risky” you would be to ensure.
Pending the answers to your initial question, your application may need to be completed over the telephone. You can schedule your call with Everyday Life within a three-hour window, and your application may be approved during the call.
Everyday Life Pros and Cons
Everyday Life is a young company that has its pros and cons, so we want to break them down for you.
FinTech: For those of us raised on things like Betterment and Credible, shopping for life insurance often seems like something out of another century. With Everyday Life, the process is fast and simple to navigate, and the company uses proprietary technology to tailor coverage for each customer.
Personal guidance: If you’ve never purchased life insurance, you might not know how much you need and what the term (length of the policy) should be. The five minute questionnaire can help answer these questions, but if you want additional help or just some clarification, you can live chat or speak to someone who can help you choose the right policy.
Hands-off: On the other hand, if you know exactly what you need, you can complete the entire process online without having to speak to anyone.
The right fit for you: When you answer the questionnaire, you’ll get a general recommendation based on your answers. But if you need or want something different, you can customize the policy to fit your needs.
Flexibility: Your life insurance needs change as you experience major life changes like marriage, divorce or the birth of children. Everyday Life lets you make changes to your existing coverage when those changes become necessary. Revisiting your insurance needs and coverage should be part of your annual financial checklist.
Affordable coverage: Most of us understand the importance of having life insurance, but many people put off buying it because they think it’s unaffordable. With Everyday Life, you can probably find affordable term life insurance for less than you spend on coffee each month.
No overselling: We ran several scenarios (dependents, no dependents, a mid six-figure income, and low five-figure income) to see what kind of quotes we would get. In a no dependents, low five-figure income scenario, we were given a quote for a policy with just $250,000 in coverage over a 20-year term.
The quote explained why someone in those circumstances might be shopping for a term life insurance policy (e.g., it’s required in some divorce cases to ensure alimony and child support payments continue in the event of death), which implies that unless it’s required, someone in this situation doesn’t need term life insurance.
We appreciated not only the lack of trying to sell more coverage than was necessary, but also that the site was making it fairly clear that in those particular circumstances, a customer doesn’t have a great need for the product.
Limited carriers: As a marketplace, Everyday Life doesn’t supply insurance policies. They connect buyers and sellers. Currently, the company works with only one carrier, which means fewer choices for consumers.
Age: Rational or not, some consumers may be wary of dealing with a company that is so young, having just been started in 2018.
Everyday Life Review – Final Thoughts
I recently had a chance to chat with Jake Tamarkin, the company’s co-founder. Having worked in life insurance for 10 years myself, it was refreshing to learn that he and I have similar beliefs about the fact that the life insurance industry as a whole has failed to serve customers as well as it should.
In particular, it’s unfortunate but true that companies that put clients’ interests first are still the exception rather than the rule. That’s one of the reasons I appreciate Everyday Life’s approach to providing customers with the right amount of life insurance coverage (no more and no less), and why I recommend you take a few minutes to get a quote from them.