Digital life insurance company Ladder has raised $ 100 million in a new round of funding, the company said on Monday.
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Ladder offers between $ 100,000 and $ 8 million in term life insurance policies for people between the ages of 20 and 60. Users can enroll through their phone and adjust their coverage as their lives change. Through the Ladder app, users can add additional coverage if, for example, they have another child and need more life insurance. Likewise, they can reduce their life insurance and premiums if they pay off a mortgage or if their children grow up.
“Your life is dynamic, your life insurance must be too”, CEO Jamie Hale said in an interview.
The company is on track to issue $ 30 billion in coverage by the end of 2021 (it issues its own policies) and has seen revenue increase 4.5 times in the past year .
Ladder plans to use the new Thomvest companies and OMERS Growth Actions co-led the funding to evolve its engineering team and grow its code base and digital interaction with customers, Hale said. It will also be focused on growth and deployment with new partners.
According to Thomvest Managing Partner Don butler, investing in Ladder was “painfully obvious” given the company’s growth, customer satisfaction and other factors. Ladder is bringing life insurance into the modern digital age, where expectations have been set for consumers in terms of what they should be able to do with an app, he said.
“Filling out and buying a policy in five to six minutes versus six to eight weeks round trip with maybe an agent and maybe someone to come to the house, it’s just a world of difference compared to up to the industry standard these days, ”Butler mentioned.
Ladder clients tend to be younger, the average age being 37, and the majority are first-time life insurance buyers. Almost two-thirds of its customers submit their life insurance application via their phone.
The company has seen strong growth over the past year, and Hale said part of this could have been a change in mindset during the pandemic.
“It really made them think of their people,” Hale said. “‘These people are important to me, I want to make sure that these people are taken care of.'”
Ladder last raised funds with a Series C of $ 37.5 million in February 2020.
Illustration: Dom Guzman
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