Digital life insurance company Dayforward, has announced it has raised new capital and the acquisition of Commercial Travelers Life Insurance Company (CTLIC), an insurance carrier founded in 1883.
The insurer has raised a $25m round of funding led by AXA Venture Partners, with participation from existing investors including HSCM Ventures, Juxtapose, and Munich Re Ventures.
According to the announcement, this figure brings the company’s aggregate amount of capital raised to $45m, which will allow Dayforward to invest in three key areas in 2023.
These areas include scaling its business nationwide, continuing to launch its proprietary solutions through strategic partners, and developing new insurance products for its portfolio.
CTLIC acquisition coincides with launching Dayforward’s innovative life insurance solution in 38 states plus Washington, D.C., with continued national expansion throughout this year.
The acquisition will not only enable Dayforward to expand nationally, but also to broaden its product lines across life, health, disability and retirement, the company said.
The insurer purchased CTLIC from National Guardian Life Insurance Company (NGL) upon receipt of all regulatory approvals. According to the announcement, it will continue to honour and service existing CTLIC policies that include disability, accident, and other ancillary health products.
Knut Olson, NGL’s President & CEO stated: “NGL is pleased to have completed this transaction with Dayforward and wish them well in their endeavours. This transaction represents one of the final pieces in our 4 year journey to simplify our business model and to focus our capital on our social purpose of helping more Americans pre-plan and fund their funerals.”
Aaron Shapiro, Founding CEO of Dayforward, commented: “Today, families go through great difficulty to get the financial security they need. Life insurance can be a tedious and confusing process.
“We’ve made life insurance simple and easy to buy, with smarter coverage for families. We’re excited that we can now offer life insurance through Dayforward to families across most of America, with the rest of the country soon to follow.”
Dayforward’s proprietary technology and automated underwriting system, the company stated, deliver a best-in-class consumer experience that allows customers to complete a simple application online and get an instant decision at a great price.
Its policies are reinsured by Munich Re Life US, a member of the Munich Re Group, which is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions.
Vikas Singhal, Founding Partner of HSCM Ventures, said: “Dayforward is a product-first, tech-enabled life insurance start-up that now has the ability to distribute through multiple channels – direct, agent, and partner – almost nationally.
“As a full-stack insurance company with a focus on automated underwriting and a streamlined front-end, Dayforward is positioned to innovate across core areas of the industry and seeks to bring customised products to the market that fit specific customer needs. We are excited to partner with Aaron and the team.”