(Image source: Haven Life website.)
Haven Life (New York), the startup, digitally focused life insurance agency backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual; Springfield, Mass.), has introduced a new term life insurance product today for employers and worksite benefit providers who want to offer additional benefits to their employees. Salary Protection, issued by MassMutual subsidiary C.M. Life, pays an employee’s beneficiary an amount equal to their paycheck every month for up to 15 years if they were to pass away during the coverage period. When compared to other group life insurance policies, which generally pay out only 1 or 2 times the employee’s annual salary, Salary Protection provides coverage amounts of up to $10,000 per month.
“For most families, a steady, monthly income is the biggest source of financial security,” comments Yaron Ben-Zvi, co-founder and CEO, Haven Life. “We’re offering Salary Protection as a portable solution through employers and worksite benefit providers so individuals have a simple, convenient way to protect their monthly paycheck for the ones they love.”
Developed in partnership with InsurTech startup Afficiency, Inc. (New York), Salary Protection aims to take the confusion out of determining how much life insurance coverage to buy, according to a Haven Life statement. The policy amount mirrors an employee’s current salary to provide the same steady monthly income a family is accustomed to. Employees can choose a policy that offers a guaranteed monthly payout to their loved ones for term lengths of up to 10 or 15 years. The number of payout years decreases over time, with the minimum monthly income stream lasting at least five years if the employee were to pass away during their coverage period.
Haven Life reports that Salary Protection is available to employees during open enrollment and is portable, so if a policyholder changes jobs, they can take their coverage with them. The product is individually underwritten to help ensure affordability and can be purchased entirely online through the employer’s benefit administration platform, with no medical exam needed for applicants. Once an application is submitted, if approved, coverage will start with the employee’s other annual benefits. The monthly premiums are then deducted from the employee’s paycheck post-taxes.
“Life insurance products offered through worksite benefit platforms haven’t provided the entirely digital buying experience, coverage portability and sufficient coverage amounts that employees need,” comments Mark Scafaro, CEO, Afficiency, Inc. “We are excited to partner with Haven Life to bring this unique new product to customers during their benefits enrollment so that more individuals can easily secure financial protection for their families.”