CUNA Mutual Launches Term Life Product that Issues Within Minutes

The new TruStage simplified-issue term life insurance product delivers a decision to applicants minutes after their answering only two health questions.

wisconsin-state-capitol-dome-interior-by-ryan-wick

(Wisconsin State Capitol dome interior in Madison, home of CUNA Mutual. Photo credit: Ryan Wick)

CUNA Mutual (Madison, Wisc.) has debuted its new TruStage simplified-issue term life insurance product, which the carrier says uses an automated underwriting platform to deliver a decision to applicants within minutes after their answering just two health questions.

“We are changing how life insurance is purchased by starting with the overall experience first,” comments Susan Sachatello, senior VP, TruStage. “Life insurance is an emotional purchase, and we understand it must be simple and easy for the consumer to secure a coverage amount they know they can afford and feel comfortable with.”

Designed Using Customer Feedback

Designed using direct consumer feedback, retail best practices and particularly appealing to the needs of younger consumers, coverage face amounts range from $5,000 to $100,000 to provide protection for home mortgages, children’s education, income replacement and final expenses, the carrier reports.

Susan Sachatello, SVP, TruStage.

Susan Sachatello, SVP, TruStage.

CUNA Mutual touts TruStage, the carrier’s consumer brand, as one of the first to market with a term life insurance product that consumers can purchase entirely online. The online platform allows cross-sell and servicing of the entire suite of TruStage products, including: accidental death and dismemberment, whole life, term life, auto, home and health insurance, entirely online.

In a design element that responds to consumers’ common motivation for buying insurance—to protect a love one—the TruStage online application asks for the name of the beneficiary at the beginning of the process, CUNA Mutual reports. The application displays the beneficiary’s name at every step of the process to remind the buyer who they are protecting.

Targeting the Younger Life Insurance Purchaser

CUNA Mutual’s product targets a younger demographic, with a starting issue age of 25 and rates starting at $3.65 a month through an online channel that’s been traditionally unavailable for life insurance purchases. The product provides coverage options based on the buyer’s budget rather than forcing them to select a specific coverage amount. The insurer reports that since the launch of the TruStage in late June, an estimated $20 million has been issued to policyholders online.

Currently available in 30 states, the TruStage product was developed through the Agile development methodology and took only six months from concept to market launch. The carrier characterizes its launch of the TruStage term life product as an example of its emphasis on investing in technology, mobile and new digital channels to support credit unions and consumers for the future.

“It is important that we continue to identify and invest in new ideas and solutions that address consumers’ evolving needs to protect their financial future,” Sachatello adds. “That protection starts with easily accessible and affordable life insurance coverage.”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For over a decade he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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