SoFi and Protective have released a new term life insurance offering that provides up to $1m in coverage via an easy, online application with competitive pricing and no medical exam for a majority of people under 40.

SoFi Finance VP Andrea Blankmeyer said: “This is a first in the industry: coverage in minutes without a medical exam in many cases, and at incredibly competitive prices.”

"Protective has more than 100 years of experience providing valuable protection to nearly 8 million customers, and we're happy to work together with them to deliver what we think is the easiest experience for buying term life insurance."

Millennials, which comprise a large portion of SoFi's member base, are especially in need of adequate life insurance coverage as they hit major financial and personal milestones, like homeownership and starting families.

According to 2016 LIMRA Ownership Study data:

  • Millennials are least likely of all generations to have existing life insurance coverage
  • One in three households would have immediate trouble paying living expenses if they were to lose their primary wage earner, with millennial households most at risk
  • Millennials overestimate the cost of life insurance premiums by 213 percent, causing them to delay getting coverage

Protective chief sales officer Aaron Seurkamp said: “Protective is pleased to work with the talented team at SoFi on this innovative new product which is designed to meet the rapidly evolving expectations of younger consumers.

"We have specifically designed the product to make it easy and convenient for SoFi members to get the financial protection they need."

The policies will be issued by Protective Life Insurance Company, which offers full customer support.

Applicants who prefer to speak to someone in person will have the option of talking with a licensed Protective insurance advisor over the phone.