Leading financial firms are teaming up with Wysh, a fintech startup, to seamlessly integrate life insurance into their offerings. This trend, known as embedded life insurance, is rapidly expanding while traditional banks struggle to keep pace with the innovation driven by digital advancements in the financial sector.
The family savings app UNest was one of the first to recognize the potential of this approach to life insurance. “By embedding life insurance as an included benefit, we’re providing a more comprehensive protection solution for our customers,” says Ksenia Yudina, CEO and Founder of UNest. Through its collaboration with Wysh, UNest has empowered over 300,000 families with financial safeguards, pushing the boundaries of excellence in the industry.
But UNest is far from alone in this venture. Peoples Bank and Trust, a community bank with a century-long history, has also come on board. “Wysh has allowed us to provide the most inclusive form of life insurance protection to the people of Eastern Kentucky – we’re very proud of that,” said Jeff Smith, CEO of Peoples Bank and Trust Company.
Michigan State University Federal Credit Union (MSUFCU), a prominent university-based credit union, was among the first organizations to implement the specified innovation. “It’s not just about offering life insurance but providing our members with peace of mind,” says Chief Innovation Officer of Michigan State University Federal Credit Union, Benjamin Maxim.
Even newer fintech players are recognizing the value of this approach. DreamFi, a digital banking platform, and Beem, a personal finance app, have both integrated Wysh’s Life Benefit into their offerings. Amidst the surging popularity of embedded life insurance, financial institutions are feeling a surge of pressure to embrace it. As banks and fintech companies adopt this innovative approach, their competitors are sensing a need to act quickly to maintain their market share.
“We’re witnessing a paradigm shift in how financial protection is offered,” says Alex Matjanec, Founder and CEO of Wysh. Financial institutions are recognizing embedded life insurance not as an optional feature but as a necessity to stay competitive in the market.
Embedded life insurance like Wysh’s Life Benefit makes getting coverage easy and straightforward. Your savings account automatically comes with a death benefit, up to 20% of the account balance. This is included without any additional work or expenses from you. You don’t need to complete paperwork or have medical checkups to qualify.
Younger generations have often been overlooked by the life insurance industry. This strategy aims to address that issue and appeal to them specifically. We’re seeing a huge response from millennials and Gen Z,” Matjanec explains. “They appreciate the frictionless nature of the product and the peace of mind it provides.”
As embedded life insurance expands, industry experts expect it to become a key offering in banking. Banks that adapt to this shift will stay competitive, while those hesitate may risk falling behind in an increasingly competitive market.
Embedded life insurance marks an early step in the broader evolution of financial services, where protection becomes more seamlessly integrated into everyday financial activities. The future of banking is about providing holistic financial solutions,” Matjanec concludes.
Financial institutions yet to adopt embedded life insurance have a valuable opportunity to embrace its growing role in the industry. It is crucial to take immediate action to avoid falling behind competitors. Those who act swiftly will secure a significant edge in the market. The question is no longer whether banks will offer embedded life insurance—but when.
