A California based supplementary health insurance startup LifeRaft raised US$ 3.5 million seed funding on 22nd December 2020. With the seed funding co-led by XYZ Venture Capital and Costanoa Ventures they also started offering their first product.
The seed funding will be utilized in the development of products that includes discovering what and how of building coverage. The investment will also support various operations around insurance like policy generation, claims and the most important one, how to get the product to people.
The company was co-founded in 2020 March by the fintech and insurance tech veterans Nimish Shukla, Joyce Noah-Vanhoucke and Ian Blumendeld and is headquartered in Oakland, California. Even the best health insurance is not able to cover everything. LifeRaft aims at filling the gap between the insurance coverage plans.
The company put live its first product, the hospital supplement insurance in November. This offers cash benefits for the ICU or hospital stays in cases of covered accidents or sickness with affordable premium on monthly basis and direct cash benefits for the policy holders.
The digital platform provides end-to-end support from applying for insurance to policy generation and claims for hassle free purchase administrative and enrollment experience.
Ian Blumened said, “While researching the insurance coverage the same question was coming up if this is something serious, how we will handle it. It was coming back to the question of where are the related products for health that look alike Life insurance. If I am diagnosed with cancer which is an under writable risk, I would have to pay a premium for that. Then we can collect enough money together for dealing with the issue but in a situation where the health plan has all the control.”
Liferaft believes everyone to have a simple way to address surprise hospitalization coverage and the financial impact possible to buy them. By offering cash benefits directly or to the ones customers choose, their indemnity insurance solutions are prioritized by flexibility, simplicity and help the customers determine what caused them to cover and how to cover them. The company has also pledged to donate 1% of their revenue for abolishing medical dept. They are working in partnership with RIP Medical Debt where US$ 100 donation will and US$ 10,000 medical debt which will help for giving the catastrophic financial burden over several families across the country. Since there are early on demand signals for the insurance in the market, the data shows they are launching at the right time.
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