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Did you know that 14% of Brits aged 25 to 44 have never heard of life insurance?
It comes at no surprise when 88% of Brits feel uncomfortable about their financial literacy. In a recent survey, 80% of the failed answers fell within retirement. So what does this tell us about society today?
If we don’t figure out a way to educate people on how to protect themselves when life happens, a lot of people will be severely impacted. If a married spouse with a mortgage suddenly passed away with no life insurance in place, the burden of the mortgage is then left to the widow. This could add to the pressure of funeral costs and other commitments.
In situations that are life-altering, such as a severe accident that impacts the ability to work for a long period of time, income protection would be essential. Without income protection, one is unable to keep up with existing expenses which can lead financial and psychological consequences.
However, with income protection, their provider is able to pay them a salary until they’re able to work again. They can also claim as many times as they need. You don’t need to fall behind in life when you’re thinking ahead.
We get it, life insurance and income protection aren’t necessarily ‘sexy’ topics but given recent global events, it’s definitely given people a light bulb moment. In fact, as a result of the pandemic, 48% of the population aged 25 to 44 are looking at income protection cover.
The issue is that there’s still a lack of accessible education out there. Most protection service providers target an affluent audience, or just speak a language the ordinary person doesn’t understand. The majority of people feel overwhelmed.
How do we overcome this problem?
By creating platforms where people can access unbiased information, in an easy language, that genuinely cares about their future. That’s why Anorak is dubbed the smart online adviser for life insurance and income protection – “We work for the customer, not the insurer”.
David Vanek, ex-CFO at Made.com, noticed that people worry so much about dying or getting ill, the impact it’d have on our families, yet many of us are not protected (he goes into depth about his motivations behind Anorak in this exclusive interview). It’s estimated that 8.5 million people in the UK do not have life insurance and 47% with a mortgage have no protection. For the self-employed, only one in ten has income protection which makes them the most vulnerable when tragedy strikes.
It’s Anorak’s mission to make life insurance accessible whilst also educating people so they understand what they’re signing up to and why it’s important.
It all comes down to a simple system:
- The user inputs their key information about their life, family and finances
- Their advanced technology builds a personalised recommendation
- The user is shown the covers they’ll need, how much it’ll cost and for how long
- When the user is ready, they are matched with the providers.
Anorak’s USP is that they’re instantly accessible and have infinite reach. Life happens to everyone no matter where you are in the world which is what makes their business model scalable. They also offer free advice over the phone or online, full of genuine and unbiased help.
When it comes to how Anorak generates revenue, their model is clear. Anorak acts as a digital broker and receives a commission from insurance companies every time they sell a policy. In this industry, commision rates are typically high (e.g. £800 per policy sold) and Anorak receives 100% of the commision upfront.
Seeing the impact of Anorak, Business Insider named them one of their top 10 global fintech firms. They have now partnered with Starling Bank, Snoop, Plum and The Time Money Mentor to name a few. As of 2021, 20,000 users have received personalised credible advice and are taking the necessary steps to protect their futures, and their loved ones.
Only 3% away from their goal of £1.2m, 221 investors have signed up to be a part of the transformation they’re bringing to the insurance and protection industry. With this funding, they plan to develop their technology and platform, scale their acquisition channels and reach out to more underserved markets.
To learn how to invest in Anorak, visit their pitch here.