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Haven life insurance review

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Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.

One of the buyers' most important questions about life insurance revolves around the cost. How much will it cost to leave your loved ones with money to cover final expenses? How much coverage do you need to buy in the first place? Life insurance is more diverse than ever, with some companies offering a full range of life insurance products. Companies like Haven Life do things a little differently.

Haven Life focuses on term life insurance policies for buyers who want quick approval. It operates on the premise of simple life insurance plans for busy people.

Life insurance plans from Haven Life

Haven Life's website offers a library on the benefits of term life insurance. It talks about low prices, simple application processes, etc. The good news is Haven Life delivers on all these promises. It has two life insurance products:

Haven Term

Haven Life is the company's medically underwritten policy. The online application is easy to complete, and buyers answer a few critical medical questions. Once you complete your application, you get preliminary approval if you qualify. The policy is backed by industry giants MassMutual and its subsidiary CM Life. However, some buyers may be subject to a formal medical exam.

Haven Term is available to buyers up to age 64 nationwide with coverage limits as high as $3 million. The payout is tax-free, but the IRS may apply exceptions for estate taxes, capital gains if you sell the policy, etc. Available terms range from 10 to 30 years, and premiums are fixed. However, unlike many other term policies, Haven Term offers accelerated death benefits. So while your policy still expires, you can pull money out in the event of a terminal illness during your term. Beneficiaries can use this money to pay for medical bills, living costs, and more.

Haven Simple

Haven Life offers many of the same benefits you'd expect from Haven Term, but with no medical exam required. MassMutual subsidiary CM Life backs this term life insurance policy, and it's issued with an online application process. Unlike Haven Term, Haven Simple is restricted in California, Delaware, South Dakota, North Dakota, and New York, and it's only available to buyers between 20 and 55.

The coverage limit is just $25,000 to $500,000, which is to be expected with a no medical exam policy. When the company takes on greater risk, it offers lower benefits. Again, Haven Simple includes:

  • Accelerated death benefits
  • Paperless processing
  • Income tax-free lump sum payments

Exceptions may apply. We recommend contacting a tax professional if you have questions about your unique situation.

 

Haven Term

Haven Simple

Medical questions/exam

Yes

No

Application

Digital

Digital

Availability

Nationwide

All states but CA, DE, SD, ND, and NY

Age limit

64

20-55

Coverage limits

Up to $3M

$25K-$500K

Terms

10-30 years

5-20 years

Accelerated death benefit

No obligation free look period

Fixed premiums

What you won't find with Haven Life

Of importance, you won't find two major life insurance options with Haven Life:

  • Permanent life insurance policies: Permanent would include universal, whole, and other life insurance policies without an expiration date. Haven Life does not offer the option to extend or convert your policy. If you live beyond the agreed-upon term, you are no longer entitled to a death benefit.
  • Policies for seniors: You may have noticed the strict age limits associated with Haven Term and Haven Simple. Your term may extend into your senior years, depending on when you buy it. But seniors over 55-65 (depending on the policy) will not qualify to purchase coverage with Haven Life.

Additional coverage options from Haven Life

Haven Life doesn't offer individual riders to customize your policy but a package to add to your Haven Term policy. Haven Life Plus connects buyers to other companies for free or steeply discounted prices. Benefits include:

  • An individual or couples trust or will with Trust & Will
  • Pre-planning for funerals and more with Lantern
  • A year subscription to the fitness app Aaptiv
  • An unlimited jetlag service from Timeshifter
  • Up to six LifeSite Plus subscriptions with LifeSite
  • 15% off a single CVS MinuteClinic service

How much does life insurance from Haven Life cost?

Of course, the limits and guidelines vary between the two Haven Life plans. So we compared pricing for a male and female buyer with maximum eligibility for Haven Term and added comparisons for the best term life policies available with Haven Simple with and without tobacco use.

 

Haven Term

Haven Simple

41M, excellent health living in MO, no tobacco use, $3M limit, 30yr term

$331.81

Not available

41F, excellent health living in MO, no tobacco use, $3M limit, 30yr term

$257.44

Not available

41M, good health living in MO, tobacco use, $3M limit, 30yr term

$1,604.42

Not available

41F, good health living in MO, tobacco use, $3M limit, 30yr term

$1,145.86

Not available

41M, excellent health living in MO, no tobacco use, $500K limit, 20yr term

$34.05

$51.09

41F, excellent health living in MO, no tobacco use, $500K limit, 20yr term

$29.05

$39.67

41M, good health living in MO, tobacco use, $500K limit, 20yr term

$161.91

$247.62

41F, good health living in MO, tobacco use, $500K limit, 20yr term

$120.56

$172.99

As you can see, tobacco use is heavily penalized. Once we added that variable, excellent health was not an option with Haven Term. Men pay more than women with Haven Life, and as you might expect, buyers willing to answer medical questions get a considerable discount.

How do I file a claim with Haven Life?

Haven Life recommends preparing a file for your beneficiaries before you die. If the policyholder didn't do so, beneficiaries would need to gather the policyholder's social security number, date of birth, and death certificate.

Once you have this information, you can call its customer service and walk through the claims filing process. Customers can reach support representatives at 1-855-744-2836. We recommend filing the claim when you have plenty of time. Reviews on Trustpilot indicate that while the quoting process is easy, customer service may be challenging.

Who are the ideal customers for Haven Life?

Young, tech-savvy buyers love Haven Life's straightforward online application and quick turnaround. On the other hand, buyers needing more phone support struggle with Haven Life's online application and spotty phone support.

The company also only offers limited offerings meant for relatively healthy borrowers. Policies are unavailable for seniors, and rates rise quickly with tobacco use, even when no medical exam is required. Our biggest concern is the lack of conversion, renewal, and permanent life insurance options.

Compare Haven Life vs. New York Life

Haven Life focuses on quick and easy term life insurance policies. On the other hand, New York Life offers a diverse range of permanent and term life policies. New York Life provides generous death benefits to qualifying customers, but its application process can be longer with a greater risk of denial. Buyers looking for benefits they can use in retirement or other financial planning will find many great plans with New York Life, accelerated death benefits, and other riders to customize coverage.

Licensed life insurance agents provide in-person and over-the-phone support. With New York Life's wide range of plans, support is critical. Agents can answer questions, advise on underwriting, discuss your long-term financial needs, and evaluate your likelihood of getting approved. New York Life agents can also advise on the terms of early withdrawals and any penalties if you intend to use your life insurance for retirement.

The critical things setting New York Life apart from Haven Life are:

  • More life insurance plan options with New York Life, including retirement-friendly plans
  • Strong customer support and planning with New York Life
  • Cheaper rates on term life policies with Haven Life
  • Easier online qualification and management with Haven Life

Compare Haven Life vs. Mutual of Omaha

Mutual of Omaha Life Insurance and Haven Life offer affordable term life insurance policies with high limits for qualified buyers. Mutual of Omaha's term life policies are available to buyers up to age 70-80, depending on the policy. But Haven Life's term limits are much higher if you're willing to answer medical questions and complete a medical exam.

Unlike Haven Life, Mutual of Omaha also sells whole life insurance and universal life policies with options to convert term policies for qualified buyers. Of note, conversion is not guaranteed as underwriting is based on your age, health, etc., at the time of your application.

The critical things setting Mutual of Omaha apart from Haven Life are:

  • Term, whole, and universal life insurance options are available with Mutual of Omaha
  • Haven Life insurance rates may be lower, and death benefits may be higher
  • Mutual Omaha insurance agents provide support and answer questions about policies, claims, and more

Compare Haven Life vs. State Farm

State Farm Life Insurance consistently tops JD Power's customer service rankings, which isn't surprising. State Farm agents are knowledgeable while offering competitive rates with all available discounts on State Farm products. Haven Life offers much more comprehensive online application services. But State Farm offers modest term and whole life policies.

State Farm agents offer support whenever you need it, particularly if you buy auto, home, and other insurance. The available limits are higher with Haven Life on term life policies pending a medical exam. The benefit you get depends on the underwriter's approval. Finally, while the accelerated death benefit is included with Haven Life, it functions as a rider with an added cost with State Farm. Buyers can discuss the availability of this rider with a State Farm agent.

The critical things setting State Farm apart from Haven Life are:

  • Lower rates and automatic inclusion of accelerated death benefits are included with Haven Life
  • Higher policy limits are available on term policies with Haven Life
  • More robust customer service and multi-policy options are available with State Farm
  • State Farm offers permanent and term life insurance policies

Methodology

With proper planning, life insurance makes retirement, funeral costs, and end-of-life planning more manageable. However, it can also add stress to challenging times with poor customer service, extended claims processes, etc. Therefore, we compare products side by side using factors like customer satisfaction, stated policy limits and riders, and average premiums. We also consider any waiting periods that may delay your full benefit when filing a life insurance claim.

All life insurance is dependent on underwriting reviews. So while companies list certain products, the terms you get depend on your approval. We help shoppers compare options and decide where to spend their time and effort. You can read more about our rating systems for insurance products here.

FAQs

Why do people choose term insurance with Haven?

Term life insurance offers higher payouts with lower premiums for qualified buyers. The tradeoff is your term expires, at which point policyholders wouldn't be eligible for any death benefit. Haven is a bargain life insurance company meaning it's more willing to approve high risk buyers with minimal hassle. But coverage is only temporary.

How much coverage should I buy with Haven?

The life insurance policy you need depends on you. A licensed agent can run the numbers based on age, intended usage, health, and more. For example, a senior buyer looking to cover final expenses only needs a modest amount. On the other hand, a younger buyer looking to save for retirement might be more interested in a $3 million policy. We recommend working with an expert to customize your life insurance policy. Haven's two products offer options up to $3 million. How much you need to apply for depends on you.

When should I buy life insurance with Haven?

As you age, your life insurance options become more limited. A healthy 20-year-old enjoys a higher likelihood of acceptance and higher limits with lower premiums. However, a 60-year-old buyer may have no options with many life insurance companies. This is no different with Haven. The younger you are, the better your odds of approval and the limits you want. With Haven's strict age cutoffs, you may also lose your chance if you wait too long.

Is Haven life insurance worth it?

Many life insurance companies offer loan options, early withdrawals, accelerated death benefits, and more. Accordingly, life insurance is highly customizable to fit your needs. As a result, life insurance can ease your family's burdens even when buying a smaller policy later in life. Haven offers larger death benefits if you die within your chosen term, but for those planning for retirement or living longer, it may be a mistake to choose Haven.

Is life insurance with Haven taxable?

Generally, life insurance payouts are not subject to income tax, which is why Haven's site specifically lists tax-free lump sum payouts. However, estate, capital gains, and other taxes may apply depending on your unique situation. We recommend consulting a tax professional if you have questions about your case.

Read the original article on Business Insider







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