Reframe Financial soft-launches LifeStage, a digital-first insurance solution

Los Angeles, CA  ‒ Reframe Financial, an insurtech company focused on helping families prepare for the financial issues of aging, has soft launched ‘Reframe LifeStage’ – a new kind of insurance designed for the millennial and ‘Gen X’ generations, available through employer groups and associations.

Reframe has partnered with Federal Life Insurance Company, a life and health insurance carrier since 1899, as the issuing carrier, and global reinsurer Swiss Re, to bring the product to market. The six-month soft launch will be limited to a select group of distributors until the product is made more widely available later this year.

Reframe LifeStage is a first-of-its-kind hybrid policy for the worksite and association market, and features Indexed Universal Life insurance with cash value and long-term care (LTC) benefits. The policy is designed to evolve and grow in value over time to meet changing customer needs at key life stages.

“The economics of aging are becoming more complex, challenging families with financial decisions that create more stress than is necessary,” said Reframe Co-Founder and Chief Executive Officer Karan Aneja. “We developed LifeStage at a time when changing workforce dynamics demand a solution that is easily accessible, while providing innovative protection for millennials and Gen X workers who represent the majority of today’s working professionals.”

According to Forrester, by 2030, 74% of the U.S. workforce will identify as millennial or ‘Gen X’. Many in this demographic are ‘sandwiched’ between aging parents and young kids, identifying  a need for different levels of coverage at different stages of life, such as more life insurance when raising a family, and increased LTC benefits post-retirement. Knowing this population is likely to become caregivers to their parents or other elder family members in the future, Reframe added a caregiver services benefit that provides its policyholders with customized advice, resources and support to alleviate their stress.

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

“Our goal with Reframe LifeStage is to provide young families with a single, packaged life and long-term care solution that is designed to meet their needs as they change over key life stages, along with a completely digital, responsive and fast buying experience that fits into their busy lives,” said Reframe Financial Chief Commercial Officer Loida Abraham.

Reframe’s proprietary technology platform – which was developed over the last 12 months – features a tailored user experience and decision-support tools desired by millennial and ‘Gen X’ populations. For example, Reframe has eliminated invasive underwriting practices, like lab tests and interviews for applicants under age 65, enabling them to apply online and receive a personalized decision within minutes. 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.

“I am proud of our team of engineers and insurance industry veterans, who applied the expertise of their respective disciplines to develop our proprietary tech platform that serves as the foundation of our offering,” added Aneja.

Reframe LifeStage has been approved by the Interstate Insurance Compact, a regulatory body focused on ensuring the safety and viability of insurance products and services, and will initially be available in 34 states. Also, the LTC benefits are indemnity-based and 7702B tax-qualified, making the policy likely to qualify for state-legislated LTC initiatives similar to the Washington Cares Act.

“We’re excited to partner with Reframe to offer this innovative product which offers a unique solution to the need for greater financial security,” said Federal Life Chief Executive Officer Bill Austin. “Gen Xers and Millennials need insurers to meet them where they are today, and Reframe is making that happen by providing a digital front door through key life stages” added Federal Life Chief Commercial Officer Dave Walbrun.