Meanwhile Life Insurance Pioneers Bitcoin Only Product
In an industry first, Meanwhile Life Insurance, led by CEO Zac Townsend, has rolled out its life insurance product using Bitcoin as the currency and unit of account. Premiums and claims for the life insurance product are both accepted and paid exclusively in Bitcoin. This groundbreaking move signifies a shift in industries traditional currency norms and positions Bitcoin at the centre of an increasingly digital economy.
The choice to use Bitcoin by the life insurance company may seem unconventional to some, however, According to Townsend, Bitcoin’s community culture makes it an attractive count for a long-term savings vehicle. He believes that, despite the cryptocurrency’s notorious volatility, the Bitcoin community has demonstrated a tendency to hold onto BTC. This attribute could potentially enhance the value proposition of Otherwise’s life insurance product.
The Bitcoin Life Insurance Model
In this unique approach, customers providing Meanwhile with a premium of 10 BTC can expect their beneficiaries to receive a double payout of 20 BTC upon their deaths. This potentially high-return scheme might appear risky, but it appeals to Bitcoin enthusiasts and long-term holders. However, the product comes with a steep minimum buy-in; customers are expected to put forth at least 5 BTC (approximately $183,000) for a five-year term.
Risks and Safeguards
While offering a promising high-return model, Meanwhile’s life insurance product somehow exposes the firm to a credit risk of approximately 3% more than what is required to cover death benefits. However, to mitigate this potential danger, Meanwhile offers its customers the option to borrow against their benefits tax-free over time, providing a safety net for customers and the company alike.
Running A Lean Operation
With only seven personnel on its core team and a high utilization of automated processes via artificial intelligence, Meanwhile operates with impressively low overhead. Townsend harbours confidence that the company can scale its operations while maintaining manageable expenses. This philosophy of lean operation has helped Meanwhile earn top-tier valuation despite its relatively small size. The company raised over $20 million in funding recently, positioning it favourably with a valuation of $100 million.
In a rapidly expanding and evolving crypto economy, Meanwhile’s novel use of Bitcoin as a unit of account for its life insurance product can potentially have wide-ranging implications for both the insurance and cryptocurrency sectors. While the success of this Bitcoin Life Insurance model is yet to be ascertained, one thing is clear – the lines between mainstream finance and cryptocurrencies are getting blurrier by the day.
With this audacious step, Meanwhile sends out a strong message to other traditional financial service providers. The company’s success will potentially serve as a blueprint for other insurers and financial institutions to investigate and potentially adopt digital currencies within their service provisions. It also underscores the increasing acceptance and integration of digital currencies in day-to-day commercial processes.
Meanwhile’s business model is, indeed, a bold leap toward a future where Bitcoin and other digital currencies are commonplace, significantly impacting the financial industry’s landscapes. As for the here and now, the world watches curiously to see how Meanwhile’s crypto-centric insurance plan transforms an industry still anchored in traditional norms.