Ladder Life Insurance Review
Founded in 2015, Ladder offers term life insurance policies, with a fully digital application process. Ladder term life insurance comes with a twist. The company’s name—Ladder—refers to the fact that you have the option of “laddering” your policy by increasing or reducing coverage if your needs change over time.
Ladder offers the convenience of no-exam term life insurance for those looking for $3 million or less in coverage. You can complete the application and lock in your policy online, reducing the typical application time by several weeks. However, a life insurance medical exam might be part of the process if you want a policy with a larger death benefit (up to $8 million).
Ladder operates in all states and the District of Columbia. Ladder’s policies are issued by its partners, Allianz Life Insurance Company or Fidelity Security Life Insurance Company, both of which have solid ratings for financial strength. And the company has a partnership with personal finance company SoFi and legal document platform NetLaw, which allows SoFi members to create wills for free.
Pros
- Fast and easy quote tool and application process
- Quick underwriting decisions for those that qualify with a price lock guarantee
- No medical exam required if applying for up to $3 million
- Policies can flex – apply to increase or decrease coverage levels as your financial needs change over time.
Cons
- Maximum age for renewal is only 60
- No riders or supplementary coverage. A standard rider like an accelerated death benefit is not available.
- No permanent life insurance coverage such as whole life insurance.
How It’s Compared
Ladder offers life insurance nationwide to those between the ages of 20 and 60. Ladder stands out for its flexibility. You can adjust your coverage amount at any time, and the insurer will adjust your premium to match. For example, if you decrease your coverage from $1 million to $750,000, your next premium will be 25% cheaper.
Ladder only offers term life insurance policies, which is typical for online insurers, but it doesn’t offer any riders to customize your coverage. So, for example, most insurers offer an accidental death rider that would provide additional compensation to your family if you were killed in an accident. If you wanted this, or any other riders, you would need to apply for coverage with a different life insurance company.
- Bestow: Another digital life, Bestow offers up to $1.5 million in term life insurance without a medical exam.
- Ethos: Ethos uses algorithmic underwriting to offer many instant life insurance approvals for term or whole life through five highly-rated life insurance companies.
- Lemonade: Customers can apply for up to $1.5 million in term life insurance through a 100% digital platform, with leftover company profits donated annually to a charity of your choice.
Bottom Line
Ladder sells term life coverage that can be adjusted over time. Whether you need more coverage or want to reduce your policy’s death benefit to save money, Ladder allows you to change your policy, making it the perfect choice for flexible coverage.
Beyond that, Ladder life insurance is barebone. You won’t have any options for riders, such as an accelerated death benefit.
