Leap Life is another life insurance company that has invested in digital customer experience. Leap Life is an online life insurance broker that represents many highly-rated life insurance companies with proprietary software that matches you with the best life insurance company.
Our Leap Life review will dive deeper into what life insurance companies Leap Life uses and how their e-application process works. The results will surprise you. So does Leap Life live up to the hype? Let’s dive in.
Who is Leap Life?
Leap Life is a new kid on the block, but they are making a big splash! Lead Life was founded in 2017 as another “insurtech” company looking to disrupt the life insurance industry.
Each insurtech company that we have reviewed usually has its own unique feature to market you on why their life insurance is great. For example, Ladder Life has a similar instant-decision digital process but also lets you to “ladder” up or down your death benefit if your needs change.
Leap Life’s uses propritary artificial intelligence to match you with the best life insurance company for your needs. While the technology is great, it basically does the same work as a broker except not as thoroughly (more on that later).
Leap Life can either match and provide you with an instant-decision online, or you can chat with one of their licensed life insurance agents who will recommend one of their top life insurance companies.
What separates Leap Life from other direct-to-consumer models is having someone and somewhere to go if you do not qualify for their instant-decision product. Other competitors to Leap Life, for example, Ethos Life, do not currently have any alternatives if you get declined.
Leap Life holds an A+ rating with the Better Business Bureau, which is their highest rating. No business gets it right 100 percent of the time. However, an A+ from the BBB infers that Leap Life resolves customer disputes in a timely manner.
What life insurance companies does Leap Life work with?
Leap Life works with twelve A-rated life insurance companies evaluated by third-party rating agency the A.M. Best Company. An A rating from A.M. Best is considered investment grade and indicates strong financial strength and claims-paying ability.
Leap Life does business in 49 States and the District of Columbia (no New York State as of the writing of this article). Leap Life offers a 100% online application for two life insurance companies (Assurity Life and Pacific Life). All other companies require calling an agent.
Leap Life Life Insurance Companies:
Our brokerage uses many of the companies on Leap Life’s roster, and we believe that they have done a great job assembling a core group of fully-underwritten carriers. That being said, we have noticed a few holes in their underwriting.
One area that Leap Life struggles in is no-exam life insurance. While a few of Leap Life’s options made our best no-exam life insurance companies list, Leap Life surprisingly is missing big players like Sagicor Life.
Another area that Leap Life is lacking in is life insurance with living benefits for critical illness and chronic illness. Leap Life only has limited options in the living benefits term life insurance market with Transamerica, but company’s like American National are leading the way.
What types of life insurance does Leap Life sell?
Leap Life offers both permanent and temporary life insurance but specializes in level term life insurance. Term life insurance is temporary life insurance coverage that can be purchased most commonly in durations of 10, 15, 20, and 30 years.
With level term life insurance, your monthly rate is locked in for the duration of the term that you purchase. For example, your rate is guaranteed for 20 years in a 20-year term policy. Leap Life’s carriers offer term death benefits as high as $5 million!
Lead Life’s Insurance Options:
Different life insurance companies have different features on their policies, such as riders or conversion privileges, but the main point of term life insurance is to pay your loved ones cash to replace your income or cover your mortgage if you were to die prematurely.
Example Leap Life Insurance Riders:
Leap Life also offers guaranteed universal life insurance (GUL), which is a form of permanent life insurance. Guaranteed universal life insurance acts as a permanent term life policy. There usually is little cash value, but the death benefit is guaranteed to an age that you choose.
Finally, Leap Life offers accidental death coverage, which is similar to life insurance. The key difference between accidental death and life insurance is that the death benefit will only pay in the event of death from accidental bodily injury. Death from illness is not covered.
Leap Life currently does not advertise any whole life options. Whole life insurance offers a savings component with your lifetime guaranteed death benefit and premiums. You can borrow from the cash through tax-free loans, but the premiums are typically the most costly.
How does Leap Life work?
Leap Life is a passive approach. You have to apply online, or you can call Leap Life for assistance during its business hours of Monday – Friday, 8 am – 6 pm PST. Most people use the online application though.
What happens if you are healthy?
Before you start your online application, you will be asked some pre-qualifying questions that will get run through Leap Life’s AI. If you are in superman-level health with no or minor medications, lifestyle or medical impairments, the AI will usually match you with Assurity.
Coincidently, Assurity’s rates are significantly more expensive than many of the other companies that Leap Life carriers, which makes us wonder how the AI came to that decision.
Assurity claims to approve up to 50% of qualified applicants instantly without a medical exam, but a coin toss is far from guaranteed. You may end up paying more and have to take the exam anyway.
Below we listed a rate comparison with two of the industries top accelerated underwriting programs so you can compare them side by side with Leap Life’s number one pick. May we remind you that Leap Life also represents both of these carriers.
Sample Leap Life Assurity 20-year Term Monthly Rate Comparison*
|Death Benefit||Assurity (Leap Life)||Protective||Principal|
*This quote is the preferred best health class for a Male non-tobacco age 34
Both Principal and Protective require a recorded telephone health interview to determine if you are approved without a medical exam. Said another way, would you do a phone interview to save up to 38 percent on your life insurance premiums?
If the answer is no, then you should skip Assurity anyway and go straight to a simplified issue life insurance product. You’ll pay similar prices to Assurity, but your odds of getting approved without a medical exam are much higher.
We ordinarily recommend a potential exam option and no-exam option and let our clients decide how they want to proceed. For some clients, a thirty-minute free physical is really no big deal, and for others, it is a huge hassle. Nevertheless, you decide, not some computer.
What happens if you are not healthy?
If you answer yes to any of the health or lifestyle questions, the Leap Life AI system will send you into full underwriting and match you with what it feels the best company for your situation will be.
This is where the science is weak in our opinion. The system may match with a new company, or it may list all the companies’ quotes with an option to request a call from one of their agents. Remember, only Assurity and Pacific Life application can be completed without calling an agent.
If Leap Life’s AI does not believe that you are insurable with any of their 12 life insurance companies, then they will offer you an accidental death policy from the Mutual of Omaha.
Accidental death insurance only will pay a death claim from death resulting from accidental bodily injury. Since medically related deaths are not accidental, there is no medical underwriting, and anyone can purchase this product guaranteed.
Now, we applaud Leap Life’s decision to include accidental death onto their platform. We personally feel that there are not enough agents selling accidental death. Accidental death is a top 5 claim in the life insurance industry, especially for younger folk.
In a perfect world, life insurance would be ideal. However, if you cannot otherwise qualify for life insurance, covering catastrophic events, like dying in a car crash, can still be useful.
Final Thoughts: Is Leap Life worth it?
Sadly, we had high expectations for Leap Life, which they did not live up to. Leap Life has an interesting concept of AI recommended life insurance in theory, but in execution, they miss the mark.
While we believe that Leap Life’s approach offers greater flexibility for consumers due to its variety of carriers, its AI lacks a robust price comparison component, especially for healthy people.
Brokers, like SelectQuote, broker the same or similar life insurance companies except with a focus on finding you the best rates. Life insurance companies, like Haven Life, are drilled in on the online experience. It feels like Leap Life falls somewhere in between.
Thank you for reading our Leap Life insurance review. If you have any questions or want a second opinion on a quote, feel free to give us a call or request a quote on our site.
FILED UNDER – INSURANCE COMPANY REVIEW
Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs. Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.