People who work out and eat healthily shouldn't have to pay as much for life insurance.
That's the concept behind Health IQ, a startup that's been making headways in the "insureTech" category.
Venture capitalists have been betting that insurance is ready for change and Health IQ has convinced investors to put another $34.6 million in the startup for its Series C. Andreessen Horowitz is leading the round with participation from Charles River Ventures, First Round Capital, Foundation Capital and others.
Munjal Shah, co-founder and CEO of Health IQ, said that said he was inspired to start the business after encountering a health issue, right after he sold his last startup, Riya, to Google.
It started out as an online health quiz and after a million people took the test, Shah believed that he had "accidentally built the largest new mortality table in 100 years of life insurance."
Now that quiz, which has questions about diet and exercise, is used to determine whether someone should get a discount on their policy.
Health IQ provides life insurance with a 4% discount for people who pass the quiz. Users are eligible for another 4% discount if they meet certain thresholds like running an eight-minute mile.
And he says that because it's based on healthy lifestyle instead of family history, for some people it could save them another 25% to what they would be paying elsewhere.
"Those who have taken responsibility should get a special rate," said Shah.
Health IQ is paid a commission by insurance carriers every time it sells someone a policy.
Shah said he would like to move beyond life insurance and expand to health insurance, but he laments that the current U.S. system doesn't allow for healthy people to pay a lower rate.
He hopes that will change someday and that he can execute on a concept that he believes promotes "meritocracy."
Health IQ has raised $81 million since it was founded in 2014.
- This article originally appeared on TechCrunch.