Sproutt raises $26M to revolutionize life insurance by offering competitive policies that reward healthy living using AI

For far too long, life insurance has been inaccessible to many Americans, with 41 million Americans reporting needing but lacking policies. Now, one startup is aiming to disrupt the life insurance market and fundamentally change the industry by offering competitive policies that reward healthy living.

Enter Sproutt, a New York-based digital life insurance startup that uncovers and rewards the ‘hidden’ healthy behaviors in everyone. Unlike the traditional life insurance industry which primarily penalizes individuals for negative elements of their lifestyles, Sproutt’s policies are also taking into account the positive elements of each individuals’ lifestyle.

Using AI technology, Sproutt’s Quality of Life Index (QLI) assesses behaviors that reflect healthy living – movement, sleep, emotional health, nutrition, and overall lifestyle balance – to personalize the policy for each customer based on their individual QL score.

The higher the customer’s QL score, the lower their risk. This allows customers with high QL scores to get personalized life insurance policies that reward them for the healthy behaviors in their lifestyle. All this in a simple 15-minute digital process.

Today, Sproutt announced it has raised a $26M Series B round to further its go-to-market strategy and bring health-incentivizing instant-issue life insurance policies to millions. The round was led by MoreTech Ventures with investment from Harel Group, The Raptor Group, and Falcon Edge Capital, alongside existing investors.

The funds will be used to further bring Sproutt’s health-incentivizing instant-issue life insurance policies direct to customers and agents. In addition, the funds will be used to roll out a new predictive life insurance product, developed from hundreds of thousands of data points gathered from Sproutt’s rapidly growing customer base.

“Most people have at least one aspect of their lifestyle that is healthier than they think – whether it be how they sleep, how much they move, or what they eat. At Sproutt, we are leveraging the QLI we’ve developed to discover the hidden healthy behaviors that exist in each person and reward them with the best possible life insurance to reflect their lifestyle,” said Yoav Shaham, CEO & Co-Founder of Sproutt. “This investment is a huge vote of confidence in Sproutt from investors that see how the market is changing and believe in our vision to redefine what life insurance can do for those who prioritize healthy living.”

In addition to its direct-to-consumer sales model, the company recently launched a dedicated Agent Platform, enabling US licensed insurance sellers to offer Sproutt’s tailored life insurance policies to their customers quickly and easily. “The pandemic threw a wrench into the process of face-to-face sales for insurance sellers, widening the ‘needs gap’ of 41 million Americans needing but lacking life insurance,” said Assaf Henkin, Co-Founder & President & Co-Founder of Sproutt. “When brokers started approaching us requesting access to our tailored life-insurance policies, we knew we could fill this gap and help a large segment of the population gain access to quality policies.”

“We see a huge opportunity to revolutionize the way life insurance is priced and delivered to customers through data analytics, real-time policy issuance, cheaper coverage, and long-term user engagement”, said Sam Bernstein, Partner at MoreTech Ventures. “Unlike auto and home, life insurance is a largely paper-driven and slow-moving process in which large parts of society find themselves uninsured, underinsured, or paying expensive premiums. We are excited to be supporting Sproutt as it accelerates its unique offering directly to consumers and agencies.”

Founded in 2018 by Assaf Henkin, Itai Brickner, and Yoav Shaham, Sproutt protects people that take care of their lives by using data and AI to reward people who live healthy life. Sproutt sells its policies direct-to-consumers as well as through agents and brokers via its Agent Portal. Backed by State of Mind Ventures, Moneta VC, FinTLV, Guardian Life, MS&AD Ventures, MoreTech Ventures, Harel Group, Menora Mivtachim, Raptor Group, and Falcon Edge Capital, Sproutt’s business operations are based in New York with an R&D center in Tel Aviv.