Haven Life is a millennial friendly, fully-online solution to purchasing life insurance. Their approval process uses an algorithm to analyze applicant information in real-time and provides an instant decision on term life insurance policies. No waiting several weeks for a decision on coverage eligibility.
In total, the process took me less than 10 minutes, and I was approved for a $500,000, 20-year policy for $20 per month with no medical exam after completing their online application. Coverage started that day. Haven Life is backed and wholly owned by MassMutual, an A++ rated insurer by A.M. Best.*
Do you actually need life insurance?
As this site has grown, I've noticed that the amount of readers asking about life insurance policies has grown pretty substantially over the past few years. People our age are right at the point of moving from a fairly simple financial picture to a more complicated one – you’re buying houses, having children and creating businesses – all of which drastically change your financial situation.
For years, I didn't need life insurance. With no debt and decent income between my wife and I, it just didn't make sense. But now, as we're in the process of building a house and considering a possible path into real estate investing, life insurance makes a lot more sense to help financially protect each other.
For most young people, term life insurance policies are often the best choice because they are affordable, easy to understand, and, now, easy to purchase, which is where Haven Life comes in. Haven Life only offers term life policies, which provide a set amount of coverage for a low monthly premium. For example, a healthy 30-year-old man can purchase a 20-year, $500,000 policy for as little as $20.17 per month.
The biggest alternative to term life insurance policies are whole life policies, which are more expensive and typically offer a cash-value accumulation feature (which in my opinion aren't very attractive compared to mainstream investments). Whole life policies are often priced above what the average millennial can afford to pay monthly for life insurance, which makes term life a good choice for many young people.
The value proposition for term life is simple – you pay a monthly premium, and if you pass away during the coverage period, a beneficiary of your choosing is awarded the death benefit of the policy. If you outlive the coverage (10-30 years), the policy expires or you have the opportunity to extend the coverage length in exchange for a higher premium.
The main goal of life insurance is to protect your family in the case of untimely death (which hopefully won't happen).
The death benefit of a term life policy can be used to help cover the following:
- Funeral expenses
- Outstanding debts like student loans, mortgage, personal loans, etc.
- Day-to-day living expenses
- Future college costs for your children
- Income replacement while your family recovers from your loss
Specific Policy Features from Haven Life:
- Up to $1 million in coverage for adults 18-65
- Entirely online application process and an instant decision on coverage
- No medical exam needed for some qualified, healthy applicants up to the age of 45 (based on information provided in application)
- Term lengths of 10,15, 20 and 30 years
- Waiver of premium is the only rider
- Accelerated death benefit is inherent to policy offering
- Issued by MassMutual, an A++ A.M. Best rated insurer
The Haven Life Application Process:
Since I am currently in the market for life insurance, I went through the online application. My general thoughts were that it was fast and an overall painless process.
First, you enter some basic information into an “instant quote” area, and once you complete it you receive a monthly premium price, as well as quotes from other companies.
Once you click the “apply now” button on the first form, you'll be taken to the longer application. You'll put in more specific information about your health history, current doctor information, family medical history, etc.
Most of the application has one click answers or drop down boxes with options to choose from. It took me less than 10 minutes to complete, and I was approved at the end.
When approved, coverage with Haven Life starts right away, and some applicants will not need to take a medical exam. If you do, you have 90 days to complete it.
If you're at the point where you need life insurance or need to estimate your monthly insurance costs moving forward, Haven Life is a very simple solution for a good price. Their application process is fully-online, and no sales calls and in some cases no medical exam is required to start your term life insurance coverage.
Take a few minutes today to see how much life insurance could cost you:
*Rating is as of May 15, 2017 and is subject to change. MassMutual has received high ratings from other ratings companies.
Haven Term is a Term Life Insurance Policy (ICC15DTC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111 and offered exclusively through Haven Life Insurance Agency, LLC.