Insurance provider DeadHappy has a mission to make it simpler for everyone to get protection that meets their needs at the right price. But how does its offering stack up?
The DeadHappy service focuses on ‘deathwishes’, where the consumer expresses their wish for money to be paid towards certain activities on their death.
The site provides a range of suggested activities, from the more traditional, such as paying off a mortgage, or those that are a little more out there, such as funding a bronze statue. Consumers can also input any wish they like.
For each ‘deathwish’ the consumer elects how much should be paid and to whom in the event of their death.
DeadHappy then takes the user through four health questions to understand whether cover can be offered. If these questions do not identify a disclosure, then cover is offered.
The product itself is a renewable life contract where the consumer needs to confirm their health each year. Each time they reconfirm their health, cover renewals are guaranteed for another 10 years regardless of health.
Where a consumer is electing to take out life insurance to cover a long-term liability, such as a mortgage, this is a concern.
What if they suffer from an illness that means that cover can no longer be offered after two years? For example, if they were covering a 25-year mortgage, there would be 13 years after the 10-year guarantee when they might struggle to obtain cover due to their condition.
If the client had a 25-year mortgage, that is 13 years they are unprotected for, with a reduced chance of being able to obtain insurance elsewhere due to their condition.
The language used by DeadHappy is fun but frank. For some, this may be unpalatable, due to the subject. For contracts where cover is only needed for 10 years it has obvious appeal.
For longer cover needs, such as to protect a mortgage or a young family, I wonder if it is really suitable.
Adam Higgs is head of research, adviser services at F&TRC
