Insuring Income

E*Trade clients will soon be able to go online to buy term life insurance, using an electronic signature to obtain "instant" coverage. Through a partnership with Inviva, the holding company for American Life Insurance Company of New York, E*Trade will be offering insurance coverage during the first quarter of 2002.

Term life is only the beginning. E*Trade plans to expand its offerings to include auto, homeowner, renter, mortgage, and credit insurance, as well as annuities, in order to provide a broader range of services to its client base. Premiums generated will enhance revenue even as they draw clients into a deeper relationship with E*Trade.

Customers will be able to buy "Instant Term Life Insurance" coverage in amounts ranging from $250,000 to $1 million online, through an electronic platform that will accept electronic signatures and issue a 90-day binding quote. Upon completion of underwriting and a medical exam, coverage will be extended for 10- or 20-year terms. Policies will also be accessible and maintainable online.