An Austin, Texas, life insurance startup has adventurers in mind, emphasizing short-term policies.
Life By Spot recently announced it had raised nearly $6 million in a seed funding round led by Silverton Partners. The Austin American-Statesman reports that the life insurance company will use the money for strategic growth and product development. According to the newspaper:
Spot is a short-term life insurance platform that offers policies ranging from 1-day to 30-day terms that start at $7. Policies are issued by Fidelity Life Association and re-insured by Hannover Life Reassurance Company of America, according to the company.
Matt Randall, an Austin entrepreneur, and former New York Life executive Maria Miller founded Spot in 2017. Randall, who is CEO of Spot, was previously chairman and co-founder of Twyla, an Austin-based startup that sells works of art.
“For the first time in the U.S., customers can quickly and easily obtain a short-term life insurance policy to give them peace of mind…” Randall said in a written statement.
According to Silicon Hills, the company is aimed at providing life insurance for people about to undertake adventures, among others. Silicon Hills reports:
“Life by Spot encourages people to live life to the fullest,” Randall said.
“Obtaining life insurance is a complicated and time-consuming process, and Spot aims to change that,” Miller, COO and Co-Founder of Life by Spot, said in a news release. “We’re not only expanding the market but also creating an entirely new distribution channel for life coverage; we’re reaching a target demographic that traditionally has been untouchable by traditional life insurers, and we’re just scratching the surface of what is possible.”
“Life by Spot is redefining the traditional insurance market with a truly innovative suite of products,” Kip McClanahan, general partner at Silverton, said in a news release. “We believe the time is right for a new take on insurance and Matt and Maria’s vision for Spot is incredibly exciting.”