SoFi, the online lender, is moving ahead with plans to roll out a life insurance product, reportedly acquiring licenses and inking a deal with Protective Life Insurance.
According to a report by The Wall Street Journal, which cited documents and people familiar with the situation, SoFi has been moving to expand into other products, first starting out with refinancing student loan debt. It now is in mortgages, personal loans, wealth management and, starting soon, insurance.
“We’re always looking at how to better help great people achieve success with their money, career and relationships, but we don’t have anything to announce at the moment,” a SoFi representative said in the report. SoFi’s plan is to be the insurance broker and more quickly get a return on the investment it makes to acquire new customers, reported WSJ.
The paper noted that, in September, SoFi received a license to sell life insurance in California through Protective Life Insurance. During the past two months, SoFi got licenses in more states, including Arkansas, Florida, Massachusetts, New York and South Dakota. The paper noted that, in New York, SoFi was approved as an agent just last week and doesn’t have an insurer that authorized it to sell on its behalf. As a result, it is inactive in New York.
In September, WSJ reported SoFi was looking to raise $500 million in equity to fund new growth initiatives among mass-market borrowers and international markets. SoFi, however, is daring to be different in its segment and is looking to grow past its roots in student lending to prime borrowers — what the firm refers to as “Henrys” (high earners not rich yet). SoFi is considering setting its sights a bit lower. A bit. These are still good credit borrowers — just not great credit borrowers. “With [Lending Club] and others lending less and moving rates higher, there is a tremendous opportunity to expand,” according to a SoFi corporate presentation from June.