How Optimizing Modern Insurtech For A New Generation Is Building Generational Wealth

Insurtech is pivotal in reshaping financial opportunities for all communities who have contended with inadequate access to insurance services vital for wealth transfer. This intersection of insurance and technology has prompted Jay Maska, founder of Nonstop Financial and agency owner of Family First Life, to empower entrepreneurs in the insurtech space with the information needed to build multi-million dollar businesses. With 52% of the total U.S. population owning life insurance, there is a burgeoning opportunity for insurtech to democratize financial inclusion and secure generational wealth.

The Breakdown You Need To Know:

Insuretech is about agents leveraging unique perspectives to serve clients better while ensuring everyone has the opportunity to benefit from the financial security and peace of mind life insurance provides. They are making a tangible difference in people’s lives and helping entrepreneurs tap into the vast opportunities within the Life Insurance & Annuities industry that is projected to reach $994.4 billion in 2025, according to research firm IBIS World.

“We operate in the life insurance, annuities, and financial planning sector, focusing on removing traditional barriers to financial security. Our approach leverages technology-driven sales systems, a seamless client experience, and a focus on financial literacy to empower both policyholders and agents in a rapidly evolving market,” said Maska to CultureBanx.

Building generational wealth through life insurance policies is a simple process and companies like Nonstop Financial continue to modernize the process. The cost stays nowhere near what you pay for homeowners or car insurance, yet the death benefits range from $5,000 to millions of dollars.

Beyond Traditional Assets:

In the pursuit of financial inclusion, insurtech is not just a business opportunity, it’s a societal imperative. Modern policy management systems support multiple business lines on a single platform. The systems enable straight-through processing throughout the policy lifecycle and have cut administrative expenses by 20% to 30%, according to McKinsey.

Many people misunderstand the role of life insurance in wealth-building. Maska said that “at Nonstop Financial, we work to break down these barriers by providing education, transparency, and modern tools that help individuals see life insurance as an essential component of generational wealth.”

Currently, Black families have the highest rate of life insurance ownership among all racial groups at 56%, compared to 52% for the total U.S. adult population. It’s important for people who want to use insurtech to grow their wealth, that they continue to work with entrepreneurs who are from their communities and can relate to their core values.

Starting young can also be quite helpful, which is why Maska stated his company employs hundreds of agents under the age of 25. Young adults are increasingly applying for term life insurance instead. Term life insurance is growing in popularity, with the total premiums paid for term coverage expected to reach $3 billion by the end of 2024, LIMRA, an insurance industry association, found is a new record for the product.

Optimizing Value:

This aligns perfectly with Maska’s entrepreneurial mentorship approach as he attempts to redesign the way the world operates, away from the scarcity mindset to one of abundance. Through his own entrepreneurial success, Maska has been able to play a pivotal role in inspiring other entrepreneurs who work under him, and are writing nearly $5 million in policies every month, he stated. Also, he has guided his team to creating their own levels of success in the industry, which has so far garnered more than 4,000 policies monthly.

LIMRA found that whole life policies make up about 38% of the life insurance market. However, whole life insurance tends to be expensive; the average monthly premium for a $500,000 whole life policy is about $440, according to Policygenius.

Situational Awareness:

Insurtech plays a significant role in wealth transfer for all communities. Tailored financial and entrepreneurial guidance is crucial and Maska’s approach extends beyond just providing life insurance; it’s about reshaping the ecosystem. Ensuring financial security for communities and fostering self-sustaining entrepreneurs are not just business strategies; they are a commitment to bridging gaps and creating a more equitable wealth building society.