The importance of purchasing life insurance has been hammered into our heads repeatedly. Shopping for it, however, can be a bit daunting even for the most seasoned consumers due to its intricacy and the abundance of competing businesses all vying to convince you they offer the greatest service. Insurance brokers and independent agencies sell policies from a variety of providers, and many insurance corporations provide their own life insurance products. Direct-to-consumer (DTC) life insurance businesses, which do away with intermediaries and sell policies directly to customers, have recently been added to the mix of viable options.
The topic of this review is Dayforward, a cutting-edge life insurance company. We’re curious to see how this upstart life insurance provider does against the established players in the industry.
A life insurance low-down
Let’s build the basis for life insurance before we go into the finer points of Dayforward. The purpose of life insurance is to provide financial security for those you designate as beneficiaries in the event of your untimely demise. Your loved ones will be provided for monetarily after your death if you take this step.
While life insurance serves a clear function, understanding the various options is more complicated. Getting the insurance you need can also feel like an uphill battle due to the abundance of insurance providers competing for your business.
We won’t sugarcoat it: the variety of life insurance plans is overwhelming. There are several different kinds of insurance, including whole life, group, universal, variable, variable universal, indexed universal, and ultimate expense. You shouldn’t give up hope until you’ve learned the differences between term and whole life insurance.
What is Term Life Insurance?
Compared to whole life insurance, term life coverage is easier to understand and manage. Since the payout is conditional on your death occurring during the policy’s duration, this is the case. The average duration of a policy is between one and thirty years. After you cancel your policy, you won’t have to worry about paying the monthly payment, but your heirs won’t receive any money if you die.
What is Whole Life Insurance?
The difference with whole life insurance is that it will pay out no matter how long you live. However, because policyholders of whole life insurance can accumulate cash value, the insurance product can quickly become complex. There are many types of whole life insurance, all of which are tricky to explain in a few short sentences. So, considering that Dayforward offers term life insurance, we’ll leave that explanation for another day.
As we noted before, Dayforward is a newbie in the sector, offering a one-of-a-kind income replacement life insurance strategy. As the newest on the block, Dayforward is already making headlines, having been highlighted by Wall Street Journal, Forbes, and Business Insider.
Let’s discover more about what they provide.
Review of Dayforward life insurance: What do they offer?
Dayforward’s innovative life insurance product is made to safeguard your income. As a result, even after your death, your family will continue to receive the equivalent of your salary every two weeks until your children are grown and able to support themselves (at age 18, 21, or even 26).
You must first enter your annual or family income and the age of your youngest child into Dayforward. From there, their software can suggest an individual insurance plan that offers a guaranteed annual income until your children reach adulthood as well as $10,000 for burial costs (yes, they’ve really thought of everything).
Dayforward’s basic premise is that most people want life insurance in order to restore their lost income for their surviving family members. So why not build a vehicle that actually protects your income rather than dealing with the difficulties of typical insurance? Dayforward’s goal is to simplify the process of buying life insurance. For simplicity, consider it “income replacement insurance.”
How much income does Dayforward cover?
With Dayforward, you may choose coverage options up to $10 million on the first policy day, protecting $12,000 to $500,000 in annual income. People between the ages of 18 and 50 are eligible for immediate coverage, and the term lengths range from 10 to 27 years. Maximum protection is given up until age 67.
What does Dayforward life insurance cost?
For candidates who are deemed to be in great health, Dayforward offers life insurance for a starting price of $7 per month. The monthly $5 subscription fee and a cost for each $1,000 in insurance coverage are included in the premiums. For comparison, the DTC life insurance rivals Bestow and Fabric advertise rates beginning at $10 and $13, respectively, per month.
Is Dayforward reinsured?
Dayforward has a solid foundation for all of its policies. The organization, like other insurance providers, is mandated to maintain a sizeable sum of money in its accounts by insurance authorities in order to meet its commitments in the future, including anticipated payouts to beneficiaries.
Munich Re, one of the biggest and most reputable reinsurance companies in the world, also reinsures Dayforward’s policies. A.M. Best has given it an A+ (Superior) grade. As a result, policyholders may rest easy knowing that the financial future of their family is secure.
What’s Dayforward’s life insurance application process like?
It only takes a few minutes to apply for Dayforward online or over the phone. Most approved applicants get an offer for their life insurance policy within a day of being accepted.
With the use of an easy quick price tool, you may view Dayforward’s prices online. Simply enter your birthdate, gender, projected annual income, and the birthday of your youngest child (there is a box to check if you are expecting a child or don’t have any children). Depending on your health, you’ll receive 4 different pricing estimates for their policy.
In order to establish your monthly cost, Dayforward will ask you a few questions about your lifestyle and health throughout the application process. Additionally, you can contact non-commissioned licensed life insurance professionals there who can assist in addressing your needs and locating coverage that is affordable for your family. Given how experts in the rest of the sector are often motivated (via bribes) to push certain goods on customers that aren’t necessarily in their best interest, that’s really refreshing.
What makes Dayforward’s Insurance unique?
1. Steady Income vs One-Time Payments
Your beneficiaries receive a one-time payout from traditional life insurance. Dayforward instead gives your beneficiaries a consistent source of income in the form of a twice-monthly check to better safeguard your family’s level of living over time. These consistent payments help for simpler financial management while you’re away because they more closely resemble your wages.
2. Life Insurance Exams (or lack thereof)
Most insurance firms perform life insurance exams to assist categorize you in the proper risk category. Carriers are able to calculate your monthly rates by gathering information about your medical and lifestyle history to discover any underlying problems or additional risks. Naturally, traditional insurance firms will charge you more if you seem to be at a larger risk.
It doesn’t operate that way with Dayforward. More than 95% of Dayforward’s clients bought policies without getting a physical. Therefore, life insurance tests are a thing of the past for most Day forward users. For the very number who are needed to obtain one, Dayforward can make things, even more, easier by sending a competent examiner to meet you at your home or place of business.
3. The Right Amount of Coverage
Many people have inadequate coverage with other types of life insurance. Some policies are underinsured, which means that if the policyholder goes away, their beneficiaries will still experience some income loss. Others overinsure themselves, which forces them to pay more for insurance they don’t actually need. Dayforward contends that since most people’s incomes already sustain their current standards of living, the appropriate level of coverage for most individuals is merely their annual income. Dayforward builds its insurance plans around the income that your dependents already depend on to maintain their standard of living. All there is to it is that.
4. Coverage for the Unexpected
Dayforward will give your family around twice as much money overall as traditional insurance of the same period and cost if you pass away before the end of the policy term. This is because Dayforward depends on your income, and if you pass away before that time, your family would need to replace your income for a while.
5. Greater Flexibility
We are all aware by this point that life is completely unpredictable. People frequently change their views, even about important life decisions, in addition to everything else that is subject to chance. So, Dayforward is adaptable enough to take into account whether you have a new child or your income changes. Every policy has an Income Increase rider with pre-set pricing and comes with it at no additional cost. With the help of this tool, you may quickly change the scope of your coverage without having to reapply. All qualifying policyholders will automatically receive Dayforward’s Child Extension rider, at no additional charge and with pre-set price, added to their policies. For more information about the rules and restrictions that apply to these extra features, get in touch with Dayforward.
Drawbacks: What can Dayforward improve?
1. Limited Geographical Availability
Dayforward life insurance plans are now exclusively accessible to residents of Texas. We admit that’s a very significant restriction, but the business is moving swiftly to expand to all 50 US states. For the time being, you can sign up for their waitlist if you want a Dayforward policy anyplace other than Texas.
2. Smaller Payout For Some
Dayforward’s income replacement model reduces the total payout on a policy if the policyholder passes away later in the policy term. This can help you save money because your family won’t have to replace as much of your lost income as they would have in the past. If you pass away within the last three years of your policy’s term, however, Dayforward will make sure your loved ones still get paid for those years. However, this particular model may not be suitable for everyone, depending on the user’s specific circumstances and intended application.
The Verdict: Is Dayforward life insurance the way to go?
When you have kids, you should think about their futures and how you might help them financially. However, because of the intricacies of conventional life insurance policies, it can be difficult for many Americans to obtain adequate protection. A Goldilocks life insurance policy would be just the right amount of coverage without being so large that the premiums are unaffordable but also not so small that the policyholder’s loved ones aren’t adequately safeguarded.
Dayforward makes it simple to ensure your family can continue living comfortably in the event of your death by replacing lost income. Dayforward’s quick online application process and high possibility of not requiring a medical exam aid consumers in obtaining the appropriate insurance coverage as quickly and painlessly as possible. Life insurance is something that everyone in the state of Texas should look into. Dayforward policies are currently being issued, however, there may be a wait. But, as the adage goes, “good things come to those who wait,” and we expect the company to rapidly grow in all 50 states.
In what ways could life insurance be improved? Share your story with us; we’re interested to learn more. Leave your thoughts and opinions in the section below.