This Startup is Unlocking Life Insurance for a New Demographic | Wysh | FF News at Money20/20 USA

This startup is unlocking life insurance for a new demographic.

Aiming to make insurance more accessible and inclusive, Wysh offers automatic, no-fee coverage of up to 10% of a deposit account’s balance by partnering with banks and credit unions.

We spoke to co-founder and CEO Alex Matjanec at Money20/20 to find out how exactly they’re disrupting the life insurance space and learn about their initiative that supports financial wellness and literacy across communities.

The Life Benefit

At the core of their business offering is Life Benefit, an innovative new product that aims to fill a crucial gap in the life insurance market. In our interview, Alex Matjanec points out that traditional life insurance products often require complex underwriting processes, which can exclude many individuals from receiving coverage. Wysh’s Life Benefit, in contrast, is embedded within deposit accounts, providing automatic, no-cost life insurance that grows along with a customer’s account balance.

Life Benefit emerged from a desire to expand life insurance access and address the growing issue of underinsured individuals. As Alex describes, the goal was to collaborate with banks and credit unions to integrate life insurance directly into deposit accounts, positioning life insurance as part of an individual’s financial journey without needing them to “opt in” actively. This product, therefore, helps banks and credit unions differentiate their deposit strategies and attract more customers by offering an added layer of security, something that traditional deposit accounts rarely include.

The uniqueness of Life Benefit lies in its simplicity: there is no underwriting, no sign-up, and no fees. As long as a customer is deemed eligible to open an account by the institution’s KYC (Know Your Customer) standards, they automatically receive Life Benefit coverage, which can cover up to 10% of their account balance. This makes it one of the most inclusive forms of life insurance currently available, providing protection to those who may not qualify for traditional life insurance products.

Starting In a Complex Regulatory Environment

Wysh faced several significant challenges in developing Life Benefit, the foremost being regulatory. In the US, starting an insurance company is not easy. Matjanec points out that in order to bring this innovative solution to market, Wysh had to become a life insurance carrier itself and navigate a complex, state-by-state regulatory process.

Unlike other Insurtech companies that streamline the purchase process without altering the product itself, Wysh sought to fundamentally change how life insurance is integrated into financial products. This process required more than 18 months of development and lobbying with regulators to obtain approvals across different states.

The regulatory journey underlined the need for patience, perseverance, and a willingness to innovate from the ground up. Wysh’s approach stands as an example for other Insurtech companies on how deeply embedded insurance products can disrupt and add value within a traditional banking framework. Embedded insurance is a growing area in the insurance and financial services space.

Financial Inclusion and Empowering Customers

For Wysh, financial inclusion is not just a buzzword; it’s a mission. By making life insurance available automatically and without barriers, Life Benefit encourages customers to take financial risks that they might have otherwise avoided. As Matjanec puts it, when people feel protected, they’re more likely to push toward financial independence. Wysh’s focus on inclusion means that life insurance is no longer a product reserved for those who can navigate complex applications or pay high premiums, but rather a fundamental component embedded in everyday banking tools.

Life Benefit also fosters a stronger relationship between customers and financial institutions. Customers experience a sense of “surprise and delight” when they discover this added layer of protection—without having requested it directly. For many, it aligns with their broader financial goals, providing peace of mind as they work toward financial stability and independence.

Advancing Financial Literacy Through NAFLI

In the states, some estimates suggest financial literacy stands at around 50% and has actually dropped 2% in the last two years. Wysh want to do something to help this and founded the National Association for Financial Literacy and Inclusion (NAFLI), which aims to pair financial literacy with accessibility. For Wysh, Life Benefit is just one part of a broader strategy to promote financial wellness, but Matjanec argues that true financial health also requires literacy. By fostering financial education alongside inclusivity, Wysh hopes to empower underserved communities with the knowledge and tools to take control of their financial future.

There are also some thoughts on attending and presenting at Money20/20 USA for the first time and what opportunities they’ve gained from being there.

To check out more fascinating interviews from Money20/20 USA, check out our website.