Ladder Life Insurance Review
If you’re looking for life insurance coverage, read our Ladder Life Insurance review to see how they compare to other life insurance companies.
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Ladder is a Silicon Valley start-up founded in 2015 and was created with the belief that life insurance is a basic necessity for all.
Ladder prides itself on offering digital-first, straightforward life insurance.
Ladder is not available in New York, although they do offer insurance policies in New York through their partnership with Allianz Life Insurance Company of New York. Ladder and Allianz Life Insurance Company of New York launched their partnership in 2019.
As one of the most expensive cities in the world, life insurance is important for families in New York, because they may struggle to meet their financial obligations if the breadwinner of their family dies.
Passionate about serving families across the nation, Ladder partnered with Allianz Life Insurance Company of New York so that they could offer insurance in the state to those who need it most.
Ladder allows clients to get a quote and manage their term life insurance online or through their app.
This Silicon Valley approach was aimed at giving customers ultimate convenience, but those who prefer to interact directly with an insurance agent might find this process impersonal.
The company stands out in the market by offering insurance products that enable their customers to “ladder” their insurance, making them an affordable and flexible option.
Terms you need to know -
Ladder’s “laddered” approach to insurance isn’t a new type of coverage in the life insurance industry. Instead, they have created their own term to refer to adjustable term life insurance.
Adjustable term life insurance allows customers to adjust their life coverage limit throughout the duration of their policy.
Ladder’s policies offer the same flexibility, but the company refers to it as “laddering”.
Are you looking for the right insurance company for you? Luckily, you’re in the right place!
Keep reading our Ladder life insurance review to find out whether they’re the right insurer for you.
Ladder Benefits and Limitations (Pros & Cons)
Benefits of Ladder
✅ Customers can complete the entire quoting and signing up process online.
✅ It offers coverage from $100,000 to $8 million.
✅ Applicants won’t need to take a medical exam if their coverage limit is $3 million or lower.
✅ The company has received an A rating from AM Best.
Limitations of Ladder
❌Ladder does not directly offer insurance in New York. Instead, they offer policies through their partner, Allianz Life Insurance Company New York.
❌The length of the insurance coverage term you will be eligible for depends on your age.
❌ Ladder term life insurance is the only type of policy they offer.
Life Insurance Essential Tips
Buying life insurance for the first time can feel intimidating, but it isn’t complex if you know where to start.
We’ve put together a quick guide to help you make the best insurance decision for your needs.
1. Assess your finances
It’s impossible to get an exact idea of how much coverage you need without knowing your current financial situation.
Before researching your options, you should have a clear idea of how much financial support your family can access in the event of your death. Some of these types of support include:
Savings.
Retirement savings.
Investments.
Trust funds.
Additional properties.
Emergency funds.
Once you have a clear overview of your assets and savings, you should also consider your debts, including the amount remaining on your mortgage.
If you are in debt, your spouse or family may be liable to pay these debts in the event of your death.
If you have children, you may want your life insurance coverage to be high enough to cover their:
Living expenses.
Medical expenses.
School.
Tertiary education.
2. Understand the types of coverage
There are two primary types of life insurance—term life insurance and whole life insurance. Here are the differences between the two:
Term life insurance: Is only taken out for a specified term, usually between five and 30 years. Some term life insurance policies will allow you to convert your policy to whole life insurance, while other insurers will cancel your policy at the end of the term.
Whole life insurance: Whole life insurance is permanent life insurance coverage that lasts for the duration of your life. While this provides longer coverage, it is also generally more expensive than term life insurance.
Along with deciding on the duration of your policy, you should consider whether you want to look into the option of adding riders to your policy, or if a simple, straightforward approach is right for you.
Terms you need to know -
An insurance rider is an add-on you can select in addition to your standard insurance policy. While riders give you additional benefits, they will usually increase the cost of your premium.
An example of a rider is an Accidental Death Rider. If you get an Accidental Death Rider, your insurer will pay out an additional amount to your beneficiaries if your death was ruled to be an accident.
3. Compare insurance companies
The only way you can be sure that you’re getting the best policy for your needs (and at the best price), is to compare various insurance companies.
Here are some of the things you should keep in mind when comparing your options:
Cost: You will be liable to pay for your life insurance for the entire duration of your policy term, so ensure that you can afford to pay your premiums in the future.
Flexibility: Depending on your needs, you may want a policy that gives you the flexibility to add and remove insurance riders over time.
Rating: Positive ratings from financial rating bureaus like AM Best, J.D. Power, and the Better Business Bureau (BBB) give you peace of mind that the insurance company is reliable and in good financial standing.
Customer reviews: Customer reviews are a great way to learn about the experiences of real customers.
Expert reviews: Expert reviews (like this one) give you a comprehensive overview of the pros and cons of each insurance company. Looking for more reviews? Read our blog for more!
4. Sign up for insurance
Depending on the type of life insurance company you choose, you might have the option of signing up online, through their app, over the phone, or in person.
The additional steps you may need to take when signing up for life insurance include:
Selecting your beneficiaries: These will be the people who receive your life insurance payout in the event of your death.
Taking a medical exam: Some life insurers require applicants to take a medical exam. Ladder only requires applicants to take a medical exam if they take out $3 million or more in coverage.
Choosing your riders: If the insurance company you have selected offers insurance riders, you can choose whether to add these to your policy immediately or at a later date.
Types of Life Insurance Policies Offered by Ladder Life Insurance
There is only one Ladder life insurance policy available, their adjustable term life insurance policy.
This policy enables their customers to change their coverage as their unique needs change over time. It doesn’t offer any other type of life insurance policy or permanent life insurance coverage.
Its term life insurance policies range from 10 to 30 years, with coverage from $100,000 up to $3 million.
Their policies are completely flexible, allowing customers to increase or decrease their coverage without paying additional fees.
When you take out life insurance with Ladder, your rates will be locked in for the entire term and will only increase or decrease if you change your coverage limit.
Unlike most insurance companies, Ladder life insurance doesn’t have brokers who earn a commission on their customers’ policies. This means that its agents won’t try to upsell you on more expensive policy options.
Policy Add-ons and Additional Benefits (Policy Riders)
Ladder doesn’t offer additional benefits or add-ons for their life insurance policies. Your beneficiaries will only receive the agreed-upon payout in the event of your death.
This enables Ladder to keep its policies affordable, but some customers may regard this lack of flexibility as a deal-breaker.
Ladder Reviews and Ratings
One of the essential steps you need to take before buying life insurance is to compare the ratings an insurer has received from various financial institutions.
These ratings agencies are held to strict industry regulations, so you can rest assured that a highly-rated company is reputable and has financial stability.
Here’s how Ladder Life insurance compares to other life insurance companies:
| Ladder Insurance | Ladder Life Insurance | Haven Life Insurance | New York Life Insurance | |
|---|---|---|---|---|
| State Availability | Available in all states except Florida. | Available in all states except New York. | Not available in California, Delaware, South Dakota, North Dakota, or New York. | Available in all states including Washington, D.C. |
| 2021/ 22 J.D. Power study ranking | N/A | 776/1,000 | 782/1,000 | 819/1,000 |
| AM Best rating | A | A+ | A++ | A++ |
| Better Business Bureau (BBB) rating | A+ | A+ | A+ | N/A |
How to Claim from Ladder Life Insurance
When you get a life insurance policy from Ladder, the company will send you a “Just in Case” card that you can share with your beneficiaries.
This card will contain important information about your policy and make the process of claiming easier.
If your beneficiaries need to claim from Ladder, here are the steps they can follow:
Email help@ladderlife.com with the policyholder’s full name, policy number, and date of birth.
Ladder will then send your beneficiaries a claim form, which they must complete and submit.
Once Ladder has received the relevant information, they will pass the claim to the insurance carrier.
If the carrier determines it’s a valid claim, Ladder will pay out the death benefit to your beneficiaries.
Our PolicyScout Final Verdict
Ladder is a reputable insurer that has received positive ratings from AM Best and the BBB.
Because Ladder is an insurance broker with no insurance license, they haven’t received a rating from J.D. Power.
Their policies allow policyholders to change their coverage limit at any time. So, you might sign up for insurance with $150,000 in coverage.
If you go through a major life change in a few years’ time (for example, getting a higher-paying job or having a child), you can increase your coverage to up to $3 million.
Despite this coverage flexibility, Ladder doesn’t offer you the choice of adding optional riders to your policy.
Some customers may find this limitation too restrictive and would want more flexible insurance options. But, it’s important to remember that these additional riders would come with an additional cost.
Customers can apply for a Ladder quote, sign up, and manage their policies entirely online. This appeals to some policyholders, while others want more personal interaction with their insurer.
Frequently Asked Questions (FAQs) about Ladder Life Insurance
What type of insurance does Ladder offer?
Ladder only offers adjustable term life insurance. Their insurance policies range from 10 to 30 years with coverage limits that range between $100,000 and $3 million.
Does Ladder life pay out?
Ladder has received positive ratings from institutions like AM Best and BBB. This means that they are financially stable and will be able to pay out your death benefit in the event of a claim.
Is Ladder term or whole life insurance?
Ladder only offers term life insurance. They do not offer whole life insurance policies.
Need Help Choosing a Life Insurance Policy?
If you’d like to find out more about Ladder or want help comparing them to other insurance policies, give us a call at 1-888-912-2132 or send an email to Help@PolicyScout.com
and one of our expert consultants will be happy to help you.