How did HealthIQ determine who qualified for discounts?

HealthIQ used a combination of a health literacy quiz testing knowledge of nutrition, exercise science, and healthy behaviors, along with self-reported and verified fitness metrics (race times, gym memberships, dietary choices). People who demonstrated health engagement qualified for premium discounts of 4–41%.

Did COVID-19 directly cause HealthIQ's shutdown?

COVID-19 was the primary catalyst. It disrupted in-person underwriting screenings, reduced consumer appetite for life insurance planning, and — most critically — introduced a mortality risk factor (viral infection) that was not correlated with the fitness-based actuarial advantage HealthIQ had been pricing.

Was HealthIQ's core insight about healthy people and mortality correct?

Yes — statistically, people who exercise regularly and maintain healthy diets do live longer on average. COVID-19 was a specific disruption to that correlation for a new cause of death. For traditional mortality risk factors, HealthIQ's actuarial model was sound.

What did HealthIQ's founder do after the shutdown?

Munjal Shah co-founded Hippocratic AI, a company building AI systems for healthcare communication and patient support. The pivot from health insurance to healthcare AI reflected his continued interest in the intersection of health data and technology.

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// HALL OF FLAME · STARTUP AUTOPSY

Founded	2013
Closed	2021
Country	USA
Sector	Insurtech
Total raised	108
Collapse type	Silent Shutdown
Founder	Munjal Shah

HealthIQ

"Life insurance designed for health-conscious people — runners, cyclists, and vegans — who were underpriced by traditional actuarial tables. COVID-19 made the health-based risk model unstable."

$108M

RAISED

—

EMPLOYEES

MONTHS

market collapseSilent Shutdown

Quiet closure with no public announcement

// Fatal mistake: COVID-19 disrupted the core underwriting assumption that healthy lifestyle behaviors (exercise, diet) are predictive of mortality risk — pandemic mortality was orthogonal to fitness levels, invalidating the premium discount model.

Key Events Timeline

2013-01

FOUNDING

HealthIQ founded

2017-06

LAYOFF

Market downturn forces cuts

2021-06

SHUTDOWN

Silent Shutdown: HealthIQ ceases operations

🔥 Hall of Flame 28%🏆 Hall of Fame 31%

HealthIQ launched in 2013 with a compelling actuarial insight: people who exercise regularly, eat healthily, and maintain active lifestyles genuinely have lower mortality risk than demographic averages suggest.

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