Hundreds of life insurance companies flood the market in today’s insurance industry.
When searching online, it’s easy to get distracted and not know which platform the best is to continue forward with. Will you be approved for life insurance coverage and are you going to be speaking with a real agent may be a few thoughts that come to mind.
Recently, a company known as Leap Life Insurance joined the mix.
The goal is to give you an initial first glance review of Leap Life Insurance and take you behind the scenes of what you can expect when navigating through the life insurance process using their online platform and independent agency model.
Following that, we will break down some of the positives and negatives you should be aware of when shopping for life insurance.
About Leap Life Insurance
Leap Life Insurance runs off an independent agency model and is a “for profit” company. This is nothing special.
In fact, it’s how most life insurance agencies are structured. All this means is that they can compare rates and find you coverage by searching and partnering with several life insurance companies.
This is positive in many ways for the consumer but doesn’t necessarily make them stand out of the crowd compared to other options you may be considering.
The Beginning of Leap Life Insurance
Leap Life Insurance was founded in 2017 by Tom Patterson, Rona Elbaz, and Nir Yeffet.
Leap Life began by raising an initial 1.5 million dollars. In most scenarios such as this, it’s possible a large portion of early seed money is invested heavily into the initial marketing platform, paid advertising and technology platforms although we have no way of knowing for sure where Leap Life decided to allocate the initial funds.
Leap Life Insurance Company is currently headquartered in the San Francisco Bay Area and according to Crunch Base operates with roughly 11-50 total employees.
How Does Leap Life Insurance Showcase Themselves?
Leap Life advertises on their website that they are “fast, easy and affordable”. While this may be true, it’s still nothing ground-breaking or something that should overly excite the consumers. We expect easy and fast in the world we live in today.
Most independent life insurance agencies have the same capabilities to shop rates, find the most ideal fits and secure your coverage at the same speed as Leap Life Insurance is advertising. One thing that popped out to me was visiting their website was seeing that they advertise “30 Day Returns”.
Don’t be fooled by this.
This isn’t something Leap Life Insurance came up with but something that is mandated within life insurance contracts.
This is known as the “free look period.” The free look period is required to be 10 days long with life insurance contracts upon the final delivery of the policy, although most companies will offer 30-day free look periods.
Point being, the idea of “30 Day Returns” will be afforded to you no matter which life insurance agency handles your policies.
Leap Life and the BBB (Better Business Bureau)
Not much to say here. The BBB shows that Leap Life has been accredited with no complaints thus far since 2017.
However, you need to keep in mind that they have also only been in operation for a short period. Eventually, some more feedback will begin to display on BBB’s platform as time passes and we will keep you posted.
A Deeper Look at Leap Life’s Platform
Leap Life Insurance also advertises freely that you can get your match within minutes online which in theory is 100% true.
If you run through the quoting process/platform with Leap Life, it’s going to direct you to enter your primary demographic information and then prompt you to answer a series of basic medical questions such as the following.
Step 1 of Leap Life Insurance’s Online Platform
- Date of Birth
- State of Residence
- Nicotine Usage
You will then believe you are getting your rate. I selected that I was a male with the date of birth of 03/13/1980 and did not use nicotine products. I then clicked “check my rate.” Instead of heading into the rates and companies you could potentially work with, you will be prompted to answer some more questions.
Only this time, they get a tad more invasive. Here’s a look at them.
- Who will be the policyholder for the life insurance?
- Are you a US Citizen or Green Card Holder?
- History Of cancer, HIV, Chronic pulmonary embolism, kidney disease, bipolar disorders, multiple sclerosis (MS), Heart disease, Parkinson’s disease, cirrhosis of the liver, or stroke?
Now we are on to phase 3. You’re not done yet.
Here’s what phase 3 will ask you.
- Do you have any of the following apply to you?
- DUI’s or Reckless driving charges?
- Ever Filed a Bankruptcy?
- Any Bills in Collections?
- Prior Felony Convictions?
- Taking Any Medications?
- Do you Skydive, Fly Aircrafts, Rock Climb or Race Vehicles?
If you selected no for all the questions listed previously, you have finally earned the right to view quotes.
It will display you three options in coverages that are tiered in the smallest amount towards the most substantial amounts of coverage and advertised as the easy coverage, essential coverage, and elite coverage options.
While this is catchy, it’s not necessary. It’s essentially just allowing you to pick from three different coverage amounts for your coverage.
The prices are the same prices that would be provided by any other life insurance agency operating using the independent agency model.
There are no special relationships that Leap Life Insurance has to offer discounts such as the Costco and Protective Life Insurance partnership. It’s just a different way of displaying results to you on your computer or mobile device.
What Happens If You Would Have Selected Yes to A Medical Question?
If you answer yes to one of the medical questions during the process, it will prompt you to answer follow up questions.
For example, I went back through the process and selected that I have had a stroke in the past. The system then allows you to answer the following questions.
- Has It Been More Than 1 Year Since the Stroke?
- Do You Have Any Residual Effects from The Stroke?
Selecting no to these questions, still allowed the system to display rates but I went back a third time. In this situation, it just informed me that they have no available options for me.
Keep in mind that I have not entered a phone number or email address at this point. I’m basically out of luck and would need to call them to discuss my options on my own. Not the best approach on their end if you ask me.
Why Is This a Bad Approach?
All Leap Life is essentially doing with their online platform is pre-qualifying you in a more in-depth fashion. They are essentially taking most of the questions that are asked on 99% of all life insurance applications and getting them taken care of up front.
This isn’t necessarily a bad idea, but they are leaving a considerable portion of the market with confusion and possibly even feeling hopeless about obtaining coverage. What if you have diabetes and need some additional help or you or prefer to speak to someone?
The Usual Scenario When Applying for Life Insurance
The fact of the matter is, it’s rare to find a perfectly healthy individual applying for life insurance. Sure, it does happen but, in most situations, individuals applying for coverage usually at least take one medication, have some form of family history or some form of a medical issue that needs to be explained to a human life insurance agent instead of an automated online process.
Online systems and technology are fantastic. I couldn’t live without them myself nor would I want to, but some things still need a professional to step in and help to get the job done correctly the first time.
How Could It Be Handled Differently?
Look, don’t get us wrong. None of this is meant to talk down about Leap Life Insurance’s online platform. From an initial bird’s eye view, it’s a sophisticated system and a nice way of streamlining the process.
Especially if you are a marathon runner, at a perfect weight, don’t smoke and your family lived till they were 105 years old.
Where the ball gets dropped and could use some improvement is more help if you do have medical concerns. An actual life insurance agent in these scenarios would be ideal. Unfortunately, falling into a high-risk category for life insurance is the norm.
America is not very healthy, and that’s not going to get better anytime soon.
What We Believe in and What We Encourage
What we like to see is a platform that is not only streamlined but also caters to everyone’s needs regardless of your health status. It takes an experienced life insurance agent to place you with the correct life insurance company.
You see, many life insurance companies have unique niches that they can provide coverage for based on your medical history and other factors. Sometimes it’s excellent pricing for heart problems, diabetes or even finding fast coverage if you have a DUI or two.
It’s hard to program a computer system to do those things. Sure, the system can prompt you and guide you to a certain point, but from there, you should be leaning on an agent who understands your needs and unique situation.
There’s no good way around this. At least not that we have found. If you have medical conditions, it’s always going to be better for you to speak to an agent after checking your potential rates.
I know everyone tends to hate this, but if you are genuinely seeking protection for your family, it’s the best approach towards approvals and the cheapest rates possible.
What Companies Does Leap Life Insurance Offer for Coverage
Currently, after requesting roughly 6 quotes on myself, it appears it’s only a handful of companies that Leap Life Insurance is providing coverage through. This isn’t necessarily a bad thing, but if it were me, I would prefer if more companies were on the table.
It can never be a bad thing to have as many options as possible, especially when you have a medical concern working against you. Here are the companies that Leap Life Insurance currently offers life insurance coverage through.
- Lincoln Financial Group
- American General Life Insurance (AIG)
- Protective Life Insurance Company
- Pacific Life Insurance Company
- Prudential Life Insurance Company
All of these are good companies. The problem is that no matter how I adjusted the coverage I was seeking or my medical status, the options didn’t change. It’s a tiny basket to choose from.
Where’s the Non-Medical (No-Exam Options)?
Funny that you ask. I had the same question.
For a process that’s supposed to easy, quick and affordable it seems very odd not to see any non-medical options being displayed for coverage. If you are unsure what this means, it means you are going to do all this legwork and still need to schedule a medical exam.
Sorry to disappoint my friends but that’s not necessarily the fastest and most affordable path you can take. What if you need coverage due to a divorce decree or you are terrified of needles or have white coat syndrome and won’t do well on the medical exam?
Well, using Leap Life Insurance would be a mistake if this is the case. You need to work with an Independent Agency that also offers coverage through companies such as the following.
- Foresters Financial Life Insurance
- Phoenix Life Insurance Company
- Sagicor Life Insurance Company
- Ameritas Life Insurance Company
These would be your fastest approach.
What would you rather do?
Spend 15-20 minutes going through the questions and setting up a medical exam and having coverage in the next 1-6 months or spend 30 minutes and complete a no medical exam application and have coverage within 3-5 business days?
Pretty simple question and I think I know your answer.
Our Final Take on Leap Life Insurance Company
Again, this was in no way meant to say that Leap Life Insurance can’t be a good option for you. It certainly can be.
The life insurance companies they represent are reliable and reputable, and it is a helpful online process. What we feel is the major downfall with Leap Life is the fact that individuals with a medical history are somewhat disregarded and it’s not as fast and easy as it looks.
We believe you deserve more options. You should have a broader basket of life insurance companies to choose from and an independent life insurance agent that can understand your needs and situation.
We also want you to have the option to move forward with a non-medical (no-exam required) life insurance policy if that’s what you wish.
That’s what we believe creates the perfect experience for our clients and encourage you to feel the same.
No matter what stage of the process you are in and no matter what medical conditions you currently have, be sure to give us a call or fill out our quote form to get started. Let us back up what we claim to be the best process life insurance can offer and show you how it’s really done.