Ladder and Envestnet | MoneyGuide Announce Integration to Provide More Advisors Digital Access to Term Life Insurance Offerings

Rhea-AI Summary

Envestnet | MoneyGuide has announced a partnership with insurtech company Ladder, allowing financial advisors to offer clients digital term life insurance through a seamless digital experience. The integration will empower advisors to estimate coverage needs, generate quotes, and send clients a link to apply, all within the Envestnet | MoneyGuide platform. Ladder's flexible coverage and visualization capabilities may save clients up to 40% over a 30-year term compared to traditional coverage.

Insights

Financial Analyst

The integration of Ladder's digital term life insurance offerings into Envestnet | MoneyGuide's platform represents a strategic move that could potentially enhance the value proposition for financial advisors and their clients. The ability to swiftly estimate coverage needs and provide quotes within a single platform streamlines the process, potentially increasing the uptake of term life insurance policies. For Envestnet, this partnership may lead to increased user engagement, retention and potentially, revenue growth as more advisors leverage the Advanced Lifetime Protection tool.

In the context of the financial planning industry, the integration of insurtech solutions is a growing trend, driven by the demand for efficiency and digital convenience. This may signal a competitive advantage for Envestnet | MoneyGuide, as they enhance their platform's capabilities. However, the impact on the company's financials would depend on the adoption rate among advisors and the terms of the agreement with Ladder. It is also worth monitoring how this integration affects the market share of traditional life insurance providers, as digital offerings become more prevalent.

Market Research Analyst

Envestnet | MoneyGuide's partnership with Ladder aligns with broader market trends where digital transformation is reshaping consumer expectations in financial services. The convenience of a digital experience could appeal to a younger demographic, particularly millennials and Gen Z, who are accustomed to managing their finances online. This demographic shift could open up a new market segment for Envestnet, contributing to long-term growth.

However, it is crucial to consider the competitive landscape. As digital offerings become more common, Envestnet | MoneyGuide must continually innovate to maintain a competitive edge. The claim of potential savings up to 40% over a 30-year term is a strong value proposition that could differentiate Ladder's offerings. But this must be communicated effectively to both advisors and end consumers to drive adoption. Market research will be essential to track the effectiveness of this integration and consumer response.

Insurance Industry Expert

The integration of Ladder's term life insurance offerings into Envestnet | MoneyGuide's platform is a significant development in the insurance industry, reflecting the increasing importance of insurtech partnerships. Ladder's proprietary 'laddering' approach to coverage, which claims to potentially save clients up to 40% over a traditional term, could disrupt traditional insurance pricing models if widely adopted.

It is important to assess the risk management implications of offering insurance without medical exams for policies up to $3 million. While this approach enhances customer convenience and accessibility, it may also shift the risk profile for the insurers underwriting these policies. Industry norms for underwriting and risk assessment could be challenged by this model, which may lead to broader changes in how life insurance products are priced and sold.

Advisors using Envestnet | MoneyGuide will now have the ability to offer clients digital term life insurance via a fast & seamless digital experience

BERWYN, Pa., Jan. 24, 2024 /PRNewswire/ -- Today at the T3 Technology Conference, Ladder, the insurtech offering digital, flexible life insurance in minutes announced an integration with Envestnet | MoneyGuide, a leading financial planning software company serving over 107,000 financial advisors. This will empower more financial advisors with the capabilities to provide clients with term life insurance issued by reputable insurers.

With this partnership, financial advisors utilizing Envestnet I MoneyGuide Elite's Advanced Lifetime Protection tool will be able to offer their clients digital, convenient, and affordable term life insurance.  Financial advisors will be able to estimate clients' coverage needs, generate a quote, and send clients a link to apply—all from within the Envestnet | MoneyGuide platform.

MoneyGuide's Advanced Lifetime Protection tool is designed to illustrate how a clients' protection needs can change over time.  This tool may help advisors identify an opportunity to improve a client's probability of successfully achieving the goals in their client's financial plan.  

"Life insurance is a critical piece of a comprehensive financial plan," says Mike Izakov, Head of Financial Institution Partnerships at Ladder. "We believe MoneyGuide has the most robust planning tool in the industry, and we're excited to make it even easier for advisors to get clients the coverage their plans call for."

With Ladder's industry-leading digital capabilities and proprietary flexible coverage (i.e. "laddering"), advisors using Envestnet | MoneyGuide will be able to utilize a visualization showcasing how a strategically laddered Ladder policy may save clients up to 40%* over a 30-year term compared to traditional term coverage.

"Envestnet's generational research shows that a surprising 50% of Baby Boomers are not formally organizing their long-term finances," said Rose Palazzo, Group President of Envestnet Financial Planning.  "Through our partnership with Ladder, our advisors are better equipped to help their clients take action on organizing their financial plans, including the important step of seeking to secure their financial futures through life insurance coverage. Ladder provides our advisors with digital access to   term life insurance products, with an integration built right into our protection planning solution."

Ladder offers term life insurance for coverage between $100,000 and $8 million, for terms ranging from 10 to 30 years. There are no medical exams required for coverage up to $3 million, just questions about an applicant's health are asked. The pricing is fully underwritten and backed by reputable carriers. Ladder offers a variety of partnership and compensation models to meet the needs of fee-based and insurance-licensed financial advisors.

For more information, visit moneyguidepro.com and ladderlife.com/advisors.

About Ladder
Ladder is the first full-stack, digital life insurance company offering flexible online term coverage in minutes that can save policyholders up to 40%* by adjusting their coverage as their life changes. Ladder uses real-time underwriting to make life insurance as accessible, affordable, and beloved as it should be. The company is headquartered in Palo Alto, CA, and offers coverage up to $8M with no hidden fees.

*Savings in premium compared with the same customer maintaining their full coverage amount for the policy term. Savings attained by decreasing coverage every three years over the policy's full term on a $1.4M, 20-year policy. Not all prices will reduce proportionally.

Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers – for further details see ladderlife.com.  All insurance products are governed by the terms set forth in the applicable insurance policy.  Each insurer has financial responsibility for its own products. 240123-3345459

ABOUT ENVESTNET
Envestnet is transforming the way financial advice is delivered through an ecosystem of technology, solutions, and intelligence. By establishing the connections between people's daily financial decisions and long-term financial goals, Envestnet empowers them to make better sense of their finances and live an Intelligent Financial Life™. With more than $5.4 trillion in platform assets—more than 107,000 advisors, 16 of the 20 largest U.S. banks, 48 of the 50 largest wealth management and brokerage firms, more than 500 of the largest RIAs, and thousands of companies, depend on Envestnet technology and services to help drive better outcomes for their businesses and for their clients. Data as of 9/30/2023.

Envestnet refers to the family of operating subsidiaries of the public holding company, Envestnet, Inc. (NYSE: ENV). For more information, please visit www.envestnet.com, and follow us on LinkedIn and X (@ENVintel).

Ladder and Envestnet | MoneyGuide are separate and unaffiliated firms. This material should not be construed as a recommendation or endorsement of any particular product, service, individual or firm. Envestnet | MoneyGuide is not a licensed insurance agency and as such, does not sell or make any recommendations related to the purchase of the insurance products referred to in this press release Insurance products are only sold or recommended by insurance licensed financial professionals or through a third-party intermediary licensed as an insurance agency. 

Media Contact:
Laura Simpson
envestnetpr@jconnelly.com 
(973) 713-8834

 

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SOURCE Envestnet

FAQ

What is the partnership announced in the press release?

The press release announces a partnership between Envestnet | MoneyGuide and Ladder, allowing financial advisors to offer clients digital term life insurance through a seamless digital experience.

What are the coverage options offered by Ladder?

Ladder offers term life insurance for coverage between $100,000 and $8 million, for terms ranging from 10 to 30 years.

What are the benefits of the partnership for financial advisors?

The partnership empowers advisors to estimate clients' coverage needs, generate quotes, and send clients a link to apply, all within the Envestnet | MoneyGuide platform.

How much can clients potentially save with Ladder's flexible coverage?

Ladder's flexible coverage may save clients up to 40% over a 30-year term compared to traditional coverage.

What is MoneyGuide's Advanced Lifetime Protection tool designed for?

MoneyGuide's Advanced Lifetime Protection tool is designed to illustrate how a clients' protection needs can change over time, helping advisors identify opportunities to improve a client's financial plan.