Federal Life Partners with SwissRe, Reframe Financial on Digital Insurance

Reframe LifeStage provides families with a hybrid policy that features Indexed Universal Life insurance with cash value and LTC benefits within a completely digital experience.

(Image source: Reframe homepage.)

Federal Life Insurance Company (Chicago) has partnered with global reinsurer Swiss Re (Zurich) and InsurTech Reframe Financial (Los Angeles) to offer “Reframe LifeStage,” a digital insurance plan designed to help millennial and Gen X employees achieve greater financial security.

Bill Austin, CEO, Federal Life.

Reframe LifeStage provides families with what it calls a first-of-its-kind hybrid policy that features Indexed Universal Life insurance with cash value and long-term care (LTC) benefits and a completely digital, responsive and fast buying experience that fits into their busy lives. The policy is designed to evolve and grow in value over time to meet changing customer needs.

Federal Life has brought the product to market with a six-month soft launch period limited to a select group of distributors until the product is made more widely available later this year. The LifeStage product is currently approved in 34 states and available through worksite employer groups and associations.

“The decision to partner with Reframe Financial on LifeStage aligns with our commitment to finding unique and innovative protection products and interest in working with like-minded companies,” comments Bill Austin, CEO, Federal Life. “Both organizations are focused on bold innovation in the insurance industry and providing the next generation of dynamic solutions to protect families and improve people’s lives.”

Kim Poulopoulos, Head Life & Health Growth Innovation Americas, Swiss Re.

A joint statement says that invasive underwriting practices, such lab tests and interviews for applicants under age 66, have been eliminated, enabling employees to apply online and receive a personalized decision within minutes.

“Finding ways to make life insurance meet the needs of more consumers is a key focus area for us as we strive to close the life insurance protection gap,” comments Kim Poulopoulos, Head Life & Health Growth Innovation Americas, Swiss Re. “This offering is powered by Magnum, our automated underwriting solution, together with Reframe’s intelligent tech platform and allows underwriting decisions at the point of sale so consumers know immediately that they have been accepted for coverage. We are delighted to have been able to utilize our product innovation expertise to help bring this offering to market.”

The joint statement notes that a large percentage of today’s workforce is “sandwiched” between aging parents and young children, creating a need for different levels of coverage at various stages of life, such as more life insurance when raising a family and increased LTC benefits post-retirement. Knowing this population will likely become caregivers to their parents or other elder family members in the future, Reframe LifeStage includes a caregiver services benefit that provides its policyholders with customized advice, resources and support to alleviate their stress, the statement says.

Bridget Ray, EVP, Federal Life.

In addition, there is no minimum group size requirement for employers, which the companies says makes it an ideal solution for the small business market, which represents 99 percent of all companies in the U.S. and employs more than 60 million Americans.

Buying Experience GenX Expects

“Having the insurance accessible through employers and associations with a fully digital process gives younger generations the kind of consumer buying experience they have come to expect in other industries,” says Dave Walbrun, chief commercial officer, Federal Life. “Another exciting feature of the LifeStage plan, in addition to its unique indexed Universal Life capabilities, is that the LTC benefits are indemnity-based and 7702B tax-qualified,” comments Bridget Ray, EVP, Federal Life. “This feature makes the policy likely to qualify for state-legislated LTC initiatives similar to the Washington Cares Act.”

Gen Z: Insurers Must Learn to Connect with the ‘Most’ Generation

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, 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.

Leave a Comment