Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.
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Our take: Yes, SoFi sells online life insurance. But it also offers other financial products, including banking, investing services and student loans. All its products can be accessed through the company’s app, which takes some of the complexity out of investing and savings accounts – such as having to sort through separate accounts and having to remember different passwords.
An online application takes just minutes and once you have coverage, you can adjust it as needed. You also can create an estate plan through SoFi, seamlessly keeping your end-of-life plans in one place. SoFi offers life insurance through Ladder.
Pros:
Cons:
Trustworthiness: The Better Business Bureau evaluates businesses on their behavior, trustworthiness, and performance. A business with a high ranking from the BBB can be trusted to meet its commitments. The BBB gives SoFi an A+.
Financial strength: A.M. Best evaluates a company’s financial health and its ability to meet its financial obligations. SoFi provides insurance through Ladder, which gets an A rating.
Customer experience: Trustpilot is an online platform for individuals to provide reviews of companies and their customer experience. Trustpilot gives SoFi a rating of 4.6 out of a possible 5.
SoFi’s life insurance rates tend to be slightly above the industry average. For example, a 25-year-old a 45-year-old nonsmoker female purchasing $500,000 in coverage for a 20-year term is quoted to pay $53 in monthly premiums, while the industry average for that same coverage is $48.
How much SoFi costs for healthy nonsmokers:
The following table shows SoFi rates by age and gender for healthy nonsmokers purchasing 20-year term policies.
For smokers:
The following table shows SoFi monthly rates by age and gender for smokers purchasing 20-year term policies.
The following table shows how SoFi’s monthly rates for 35-year-olds in excellent health compare with selected competitors for $500,000 in coverage.
Additional product line details: SoFi does not offer additional life insurance policies and only offers an online term life product through Ladder.
In SoFi’s online portal, you will be directed to Ladder’s site to apply. However, your policy will still be issued through SoFi, and you should reach out to SoFi for any questions or concerns regarding your policy.
Company background: SoFi was founded in 2011 by Stanford business school students and offers a number of financial products, from student loan refinancing to retirement accounts. Insurance is just one of many financial planning services offered by SoFi.
Interesting tidbit: As an extra perk, SoFi also provides estate planning services to members, which includes help drafting a will.