Online Lender Sofi Becomes Insurtech

Note from the CEO:  Natural progression. An online lender in a crowded field diversifies from loans to life insurance. Look for a lot more of these types of transactions as the new markets for technology innovation get more crowded. And no medical exams either. Time saver.

SoFi (Social Finance) is joining Protective Life to offer life insurance, primarily to people under 40. It’s a natural progression given that SoFi pretty much targets millennials to offer student loan refi’s, mortgages and wealth management to a younger generation. That will certainly make it much easier to offer online life insurance without a medical exam knowing that the vast majority of applicants will be heathy.

“Social Finance Inc., a fast-growing online lender that focuses on high-earning millennials, is broadening its offerings to include life insurance.

The startup, known as SoFi, will join with Protective Life Corp. to provide up to $1 million in term-life insurance to its clients, according to a statement from both companies Monday. The application will be fully online and won’t require a medical exam for a majority of people under 40, they said.

‘This is a first in the industry: coverage in minutes without a medical exam in many cases, and at incredibly competitive prices,’ Andrea Blankmeyer, vice president of finance at San Francisco-based SoFi, said in the statement.”

Read Full Article at Bloomberg