Sproutt life insurance: who issues it and how it works

Overview

Sproutt was an online life insurance brokerage founded in Israel in October 2017 by Yoav Shaham and Itai Brickner. Its U.S. business ran through a subsidiary, Aktibo, Inc., which did business as Sproutt. The company's pitch was that healthy habits should be rewarded: its "Quality of Life Index" scored applicants on sleep, movement, nutrition, emotional health and balance, and it used the results to match people with insurers and policies.

The company raised about $38 million and reached a valuation of about $200 million, according to Israeli business paper Calcalist. Backers named in press reports included Guardian Life, MS&AD and the Israeli insurers Harel and Menorah Mivtachim.

The consumer model did not bring in enough revenue to cover marketing costs. Sproutt went through several rounds of layoffs, and Calcalist reports it shifted from selling directly to consumers toward working with U.S. agents and agencies in 2022. In March 2023 it launched "SmartLife for Agencies," a quoting platform for agents, and bought The Reder Agency, a brokerage with more than 400 agents focused on traditional and senior markets. Coverager described it at that point as "officially a B2B company."

That did not save the business. In late April 2024 Sproutt asked the Tel Aviv District Court to open insolvency proceedings after it could not repay about $2.2 million owed to Bank Leumi, plus about $740,000 owed to suppliers and in unpaid salaries, Calcalist reported on May 1, 2024. Its estimated cumulative losses were about NIS 125 million (roughly $33 million). The sproutt.com domain no longer resolves as of October 24, 2026.

Who issues the policy

Sproutt was a broker, never an insurer. Its FAQ said it was "an independent broker," was not affiliated with any insurance company, and was paid commissions by the insurers whose policies it sold; it said its advisors received the same commission whichever insurer a customer chose.

That means every policy sold through Sproutt was issued by a separate, licensed life insurance company, and that insurer, not Sproutt, pays the death benefit. Sproutt's collapse does not cancel or change any policy. We could not find a carrier list from Sproutt that we could verify, so check the first page of your policy contract, your annual statement or your premium bill for the issuer's name.

How buying works

When it operated, Sproutt let customers get quotes and apply online, or talk to an advisor by phone. It noted that most insurers still required a phone interview after an online application. No-exam products used simplified underwriting (health questions and records checks) or guaranteed issue (no health questions), and traditional policies could require a medical exam. Sproutt no longer takes applications.

Products and limits

Sproutt's site listed term life, no-exam life, whole life, universal life, guaranteed issue life and critical illness insurance. Coverage amounts, ages and terms were set by the issuing insurers.

Reputation

Sproutt's failure was financial, not regulatory: we found no documented regulatory actions against Aktibo, Inc. in public sources. Calcalist attributed the collapse to costly strategic decisions and to rising interest rates in 2022 and 2023, which drew investment away from startups like it.

For the policies themselves, what matters is the financial strength of the issuing insurer. Look up that company's insurer profile for its current AM Best rating; our guide to online life insurance companies and agencies explained explains how platforms and issuers differ.

Who it suits

Sproutt no longer sells insurance. If you are shopping now, see buying life insurance online: how instant decisions work for current options.

If you bought a policy through Sproutt:

1. Keep paying premiums to the insurer as usual. Your coverage continues as long as the policy stays in force.
2. Contact the insurer directly for billing, beneficiary changes, conversions and claims. Its customer service number is on your policy and statements.
3. Ask the insurer who your agent of record is. After an agency closes, insurers often reassign the servicing agent or let you name a new one. You do not need an agent to keep your policy.
4. If you can't identify the insurer, your state insurance department can help, and beneficiaries can use the NAIC Life Insurance Policy Locator to search for a policy after a death.

Strengths (while it operated)

• Online quotes and applications with advisor support
• Independent broker with flat advisor pay across insurers

Weaknesses

• Business failed; filed for insolvency in April 2024
• Former customers must deal directly with their insurers

How to contact Sproutt

Sproutt has no working website or customer line that we could find. Contact the insurance company named on your policy. For help locating a policy or a complaint about service, contact your state insurance department.