SoFi is solidifying its plans to launch a life-insurance product by acquiring state licenses in CA, AR, NY, FL, MA and SD and setting up a deal with carrier Protective Life Insurance Co.
SoFi is planning to act as an insurance broker. Brokers typically are compensated by receiving about 1.3 times the first year’s premiums on each policy sold. By selling additional products to existing customers, SoFi can more quickly return the investment it makes in acquiring them. In September, SoFi obtained a license in California to sell life insurance on behalf of Protective Life Insurance, according to state records. Protective Life representatives declined to comment. Protective Life, which was founded more than a hundred years ago and acquired by Japan based Dai-ichi Life last year, had issued $767 billion of life insurance as of the end of 2015.