There is nothing better than retiring early and having true financial independence. It’s not always easy to achieve this, but once you’ve attained financial freedom, you definitely appreciate all the sacrifices made along the way.
You also do everything in your power to prepare for and, once achieved, maintain this financial independence. For you and for your loved ones. Because what good is financial freedom if you’re not sharing it with those you love?
Believe it or not, that means purchasing term life insurance to protect your loved ones financially while you work toward financial independence.
Term life insurance protects your loved ones during the years they usually need it most — while you’re building your career and net worth and until the kids are adults and the mortgage is paid off. There’s really no question about it: if you have financial dependents, then you need life insurance.
Thanks to some entrepreneurial minds it’s now easy to buy affordable and dependable term life insurance coverage online. And the more encouraging news is that younger, healthier millennials generally get the best rates.
Today, I’m reviewing a leading startup that offers a simple way to purchase term life insurance online: Haven Life.
Haven Life Overview and Rating
Since the direct-to-consumer life insurance space is relatively new, it’s filled with upstarts.
These upstarts are great for consumers like us because they’re innovating the purchasing experience while keeping prices competitive.
One thing I really like about Haven Life is that it’s backed and wholly owned by MassMutual.
So you get the innovative user experience of a startup with coverage issued by a leading insurer. MassMutual also has an A++ rating, from A.M. Best for their financial strength and claims paying ability. That’s the highest rating available from A.M. Best.
Haven Life also gets strong customer reviews from third-parties, which is important when you’re essentially embarking on a long-term relationship. Their TrustPilot rating (as of August 15, 2019) was 9.5 out of 10, with more than 745 reviews.
What Does Haven Life Offer?
In terms of their offerings, Haven Life currently sells only term life insurance, there are no permanent life insurance options such as whole life.
If you need more explanation about what term life insurance is compared to other types of insurance, read my in-depth review here.
Term Life Insurance
Term life insurance provides a simple, affordable way to provide for your loved ones in the event of your death.
This type of life insurance coverage lasts for a fixed period of time—typically 10, 15, 20 or 30 years.
Like other kinds of life insurance coverage, term life guarantees a financial payout to your beneficiaries—a “death benefit”—in exchange for your regular monthly premium payments. That payout is often tax free and paid in a lump sum.
An example quote for a 30-year-old man in excellent health buying a 20-year, $500,000 Haven Term policy issued by MassMutual is $21 per month .
More about the Haven Term Policy:
- Age eligibility is 18-64
- Available in 10, 15, 20 and 30-year term lengths
- Up to $3 million in coverage, subject to some limitations like age, income and citizenship
- Comes with cool benefits beyond life insurance through Haven Life Plus
Haven Life’s Application Process
The process of applying for and buying term life insurance through Haven Life is pretty simple. That sentiment is reflected in its customer reviews.
If you’re not sure how much coverage you want or would like to get an idea of how much a policy would cost, you can use their life insurance estimate tool to help self educate.
If you like what you see, you can easily apply online. You’ll enter information about your income, lifestyle and personal health and family health history.
Haven Life reviews that information in real-time using sophisticated algorithms and pairs it with third-party data the rest of the industry looks at — like RX history and DMV records. You find out instantly if you’re approved for coverage and, if so, coverage can start that day.
Many applicants (but not all!) do need to take a medical exam to finalize their coverage and rate, which is usually a good thing, actually.
Medically underwritten coverage like Haven Life offers is more affordable than 100% no-medical-exam coverage. If a medical exam is needed, Haven Life makes that easy to do, at a time and place of your convenience.
FAQs about Haven Life
What is medically underwritten term life insurance?
While there are types of life insurance that can give you coverage without taking into account your medical history, a medically underwritten policy gives the life insurance company a chance to better understand your health history instead of making assumptions about how healthy you are.
That means personalized pricing for you and only you which usually results in lower rates. Generally, for 100% no medical exam policies, a life insurer has to assume that there is a reason you don’t want to take a medical exam and has to price according to that added risk.
Additionally, medically underwritten coverage offers more options for coverage. For example, most 100% no medical exam policies are limited to coverage amounts of $500,000 or less. Medically underwritten coverage through Haven Life is available up to $3 million.
Is it possible to get coverage without taking a medical exam?
In some cases, eligible applicants may qualify for the InstantTerm process, which lets them skip the medical exam altogether.
That’s because Haven Life has built technology in partnership with MassMutual that can analyze application information in real time.
If the life insurance company has a good enough understanding of your health and risk, the formality of an exam may not be needed. But for the sake of transparency, most Haven Term applicants need to take a medical exam. Haven Life is actively working to bring the innovative InstantTerm experience to more applicants.
Remember: it’s very important to be honest when completing the application. The issuance of the policy or payment of benefits depends on the truthfulness of answers in the application.
How much does Haven Life cost?
The cost of life insurance varies based on your age, gender, health and how much coverage you are purchasing.
For a 35-year-old man in excellent health, a Haven Term policy issued by MassMutual would cost:
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What is Haven Life Plus and why does it matter?
Think about the relationship most people have with their life insurance company. It’s been a bill. Every month. For years on end. You have coverage in place but hope to never use it.
Haven Life felt there was much more that could be done for customers after they purchased a policy. Something that not only rewarded them for placing their trust in the company, but also made their lives easier while they’re actually living.
So the company rolled out Haven Life Plus, a rider (think: benefit) to the Haven Term policy — all at no additional cost to your premiums.
This speaks to the company’s innovative approach, and the services included in Plus are items that a millennial is likely to need anyway. Haven Life continues to periodically roll out new additions, which make for another great touchpoint with their customers.
Services Included in Haven Life Plus:
- Aaptiv: a leading in-home fitness app; policyholders have access to a yearly subscription ($99 value)
- Trust & Will: an online solution for creating a legal (a $129 value)
- LifeSite: a secure, digital safe deposit box for organizing and sharing your family’s vital documents; policyholders receive a subscription for themselves and up to five family members ($80/year).
- Timeshifter: a travel app that helps to eliminate the symptoms associated with jet lag; policyholders have access to a year of unlimited Timeshifter jet lag plans ($24.99/year)
- MinuteClinic®: routine health services offered inside CVS Pharmacy and Target stores; policyholders receive a 15 percent off discount on any single service
Note: Haven Life Plus is not available to residents of Florida, New York, North Dakota, South Dakota, and Washington.
So, Is Haven Life For You?
Let’s recap where we are.
Is Haven Life stable?
Yes, this startup is backed and wholly owned by MassMutual.
Does Haven Life offer good policy options?
Yes, their term life insurance coverage is affordable, easy to purchase, comes in many coverage options and also has benefits beyond life insurance, like a free online will, through Haven Life Plus.
Is Haven Life affordable compared to other term life insurance options?
So on all the main merits, Haven Life checks out as a very strong, reputable option for term life insurance, and it’s worthy of your consideration.
And since it’s important to have life insurance to protect your family’s financial independence, what are you waiting for?
If you need help figuring out the right amount of coverage and term length for you, a free online calculator (life the one at the top of the article, can help take out the guesswork.