AXA-Backed Startup Acquires Commercial Travelers Life

Dayforward is joining the race to update the life, health and annuity distribution and sales process.

The New York-based startup announced Monday that it’s using backing from AXA Venture Partners and other investors to acquire Commercial Travelers Life Insurance from National Guardian Life.

The company also announced that it has arranged for $25 million from the investor group and that it has started offering term life, through the web and via agents in 38 states and the District of Columbia.

The company has designed the life insurance policies it now sells to make a stream of benefit payments the default death benefit payout option. A policy owner can pay extra to have the benefits paid in the form of a single lump sum.

What It Means

Life insurers, investors and entrepreneurs think there’s still room to improve how clients protect themselves against disability, death and outliving retirement savings.

The Company

Aaron Shapiro founded the design and marketing agency Huge before launching Dayforward in 2021. The company has raised a total of $45 million since it was founded.

AXA is the biggest investor in the new, $25 million round of funding. Other major investors are Munich Re, HSCM Ventures and Juxtapose.

Dayforward has started by using technology to try to create a fast version of the traditional underwriting process, rather than cutting down on underwriting.

The company’s board includes Maria Vullo, the former New York State Department of Financial Services superintendent.

Commercial Travelers Life

Commercial Travelers Life is a Utica, New York-based life insurer that was founded in 1883.

National Guardian Life, a life insurer based in Madison, Wisconsin, had been using the company to write student health insurance, and then expand to offer dental insurance in New York state through a joint venture with Federal Life.

National Guardian Life ended up selling the student health insurance business to Wellfleet, an arm of Berkshire Hathway, in 2019, and it moved its stake in the dental insurance business to a holding company controlled by it and Bain Capital in 2022. The dental insurance program now uses National Guardian Life itself as the underwriter.

“Dayforward will continue to honor and service existing Commercial Travelers Life Insurance Company policies that include disability, accident, and other ancillary health products,” the company said.

The Future

Dayforward plans to use the new cash it has raised to expand its business, to develop new products and work with other companies to market the new products.

The Commercial Travelers Life deal will help Dayforward add health insurance, disability insurance and retirement products, as well as adding life insurance products, the company said.

Vikas Singhal, a partner at HSCM, emphasized in a comment that the company will be working with agents and outside distribution partners as well as selling directly to consumers.

The Term Life Policies

Dayforward is using reinsurance from Munich Re Life  US to create its products.

Traditionally, life insurers have used the term “income protection” to refer to disability insurance.

Dayforward is encouraging middle-income workers to think of using life insurance to protect families’ access to their income. The company is recommending a consumer determine how much term life insurance is needed by multiplying the consumer’s hourly wage by $2,000.

The policy term can range from 10 to 27 years. For consumers ages 41 and older, the coverage will end at age 67.

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