The cost of long-term care is growing, and an insurance fintech wants to help financial advisors solve problems for clients.
A study from the National Council on Aging found that 15 million seniors are financially insecure and that more than 65% of Americans will require some form of care as they age. Costs are steep, yet only 10% of Americans have some form of long-term care insurance, according to a separate report from the Congressional Research Service.
Modern Life is addressing the gap by adding long-term care insurance and hybrid LTC insurance products to its suite of products for financial advisors. Both products will be available on Modern Life’s digital life insurance brokerage platform, which attracted $15 million in seed funding in August.
“The average person retiring today has a 70% chance of requiring long-term care in their lifetime,” Michael Konialian, the co-founder and CEO of Modern Life, said in a statement. “With care costs rising by as much as 6% per year, it is more important than ever that financial advisors help clients plan for their future needs.”
Incorporating health care costs can help financial advisors plan more holistically for a client’s retirement, said Eric Greene, a representative of Northeast Financial Network.
“Clients are increasingly concerned about custodial care costs and longevity risk,” Greene said in a statement. “Long-term care solutions offer a means to offset these risks in a tax-efficient manner.”
Advisors can request a quote using a shareable form to collect client data. For advisors without a deep history with life insurance products, Modern Life makes a brokerage team available to help compare coverage options and available riders.
Modern Life’s product shelf is stocked by more than 20 national carriers. In addition to the newly added LTC products, it offers permanent and term life insurance
Prior to the pandemic, most life insurance searches began online but more than 90% of policies were secured through an in-person interaction with a broker. COVID has not only served as a boon for the industry as consumers paid more attention to their financial security but also a catalyst for digital transformation. Virtual capabilities for advisors and brokers, digital applications, the electronic delivery of policies, and underwriting automation are all key priorities where significant demand exists to keep up with today’s discerning consumer. Modern Life is a tech-enabled life insurance brokerage that brings these insurance digital capabilities to advisors to allow them to best serve their clients’ needs across the life insurance spectrum. Insurance advisors using the platform can offer both whole life and term policies as well as long-term care and disability options. In the background streamlining the purchase process is a sophisticated data-driven underwriting assessment engine, comparison quoting, document management solution, and administrative functions. The average life insurance policy takes three months to secure, Modern Life is on a mission to turn this into mere minutes. Policies are available to customers in all 50 states and Modern Life is currently working with 15+ policy providers including industry leaders such as AIG, Prudential, and John Hancock.
AlleyWatch caught up with Modern Life Cofounder and CEO Michael Konialian to learn more about the business, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
We announced that we raised $15M in seed funding, led by Thrive Capital. We also had 12 unicorn founders join the round from Hippo, Plaid, Reddit, Flatiron Health, Newfront, At Bay, Vouch, Cedar, and Lattice.
Tell us about the product or service that Modern Life offers.
We are a tech-enabled brokerage for life