April 18, 2019

Ethos Life Insurance Review

Read more about Life Insurance

Ethos offers term life insurance at prices lower than traditional agencies. It's done completely online in just minutes. But what's the catch? Read on for the review.

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Life insurance can be a very stressful topic. There are so many big decisions to make and fine print to study.

Ethos sets out to un-complicate this process. Its goal is for life insurance to not only be affordable, but also easy and pain-free for the modern person.

Instead of weeks of meeting with agents, paperwork, and exams, Ethos created a process that's done online in just minutes. Because this cuts out the middleman, the rates can be kept low.

Just how does Ethos Life Insurance stack up? Is it worth it or is it a scam? Keep reading to find out.

About Ethos

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Ethos uses technology to offer low rates and a hassle-free application process. Instead of sitting down with an agent, it's all done online. Most people don't even require a medical exam.

Ethos is a new company only founded in 2017. But it is partnered with some of the largest life insurance companies in the nation. Its life insurance policies are issued by Assurity, which has been in business for over 125 years and has an A- (Excellent) rating by A.M. Best. Other partners include RGAx, Munich RE, and Aon.

These partnerships offer valuable backing to the newness of Ethos as a company. This ensures that Ethos' policies are reliable and safe.

What Ethos Offers

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Life insurance can be very complicated. Ethos makes it easier by offering only one type - term life insurance.

Term life is the easiest type of life insurance to understand. You select the coverage amount and the term. If you die within that term, your beneficiary gets the payout. If you don't die, then the policy just lapses.

Here's a snapshot of what Ethos offers.

  • Terms of 10, 15, 20, or 30 years
  • Coverage from $25,000 to $10 million
  • Available to people ages 18 to 75
  • Can buy coverage for up to age 85
  • Available in all states except New York

Your biggest decision with Ethos is how much life insurance you want and the term you want. That's it.

Ethos Eligibility Requirements:

  • Be 18 to 75 years old
  • Be a U.S. citizen or green card holder
  • Have lived in the U.S. for at least 24 months
  • Reside in a state Ethos is operating in (currently not available in New York)

The Application Process

Ethos aims to keep the whole process simple and painless. It takes just about 10 minutes to complete their 100% online application.

Here's how it works:

  1. Preliminary Questions: The process starts with a screener. You answer some simple questions:

    • What's your gender?
    • Do you use nicotine?
    • How's your health?
    • What state do you live in?
    • When is your birthdate?

    And that's literally it. Click on "Check my price."

  2. Get Estimated Quotes: Based on your answers, Ethos presents you with "Recommended Plans" and some initial quotes.

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    Or you can choose your own coverage and term:

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    Since you haven't officially applied yet, this quote is just an estimate.

But will my real rate actually match this?
Ethos claims that 81% of applicants actually receive a premium equal to their quote, sometimes even less. Of course, your premium will depend on factors like your health and lifestyle.

  1. Application: Once you choose the coverage and term, click "apply now" and you'll start the process. You'll enter your name and a beneficiary. You'll then enter other basic information such as your address, height, weight, birthdate, and gender. You'll then answer questions about your lifestyle (again). Finally, you'll answer questions about various health issues.

  2. Underwriting: Each applicant is individually underwritten. The final premium depends on your individual factors, like health and lifestyle. During this time, Ethos may require you go through a medical exam or lab appointment, although this is not required in most cases.

Ethos Customer Service
You can reach a licensed agent through phone, email, text and live chat between the hours of 7 a.m. to 8 p.m. (PT).

Reasons We Like Ethos Life Insurance

May Not Require a Medical Exam
Just like any other life insurance policy, each applicant is underwritten based on their qualifications. According to Ethos, many applicants don't need a medical exam or even labs drawn. Ethos gives you the benefit of the doubt to keep your rates low.

If you do, Ethos even covers the cost and makes scheduling the appointments simple (if you want more than $1 million in coverage, you may need an exam).

No Fees
The whole application process is online, so you don't deal with an agent. Because the process is mainly automated, Ethos can eliminate the typical administrative fees and pass the savings along to its applicants.

No Upsell
When you apply for life insurance the traditional way, the agent often works on commission, and so is trying to upsell you to a more expensive and complicated plan. It's easy to get overwhelmed and choose a policy that you don't understand.

With Ethos, it's all done online so there is no upsell. You won't be forced to pick something out of your budget.

May Give Instant Approval
Each individual is different, but many applicants receive immediate approval because of the automated underwriting process. If there's nothing that sticks out as risky on your application, you may be approved within a matter of minutes.

Accepts Applicants Up to Age 75
While you will only be eligible for a shorter term (typically 10 years), you can still get coverage despite being past typical retirement age.

Pays Claims Within a Few Weeks
Losing a loved one is hard enough, but waiting months for the life insurance payment can make it even worse. Ethos pays claims quickly to help lessen the stress while you're grieving.

Guaranteed Premiums
Your premiums won't change for the entire duration of the policy. You don't have to worry about increasing premiums that become unaffordable as you age.

31-day Grace Period
If you can't pay your premium on its due date, Ethos offers a 31-day grace period. If you don't pay within the grace period, you will lose coverage. If you want to obtain it again, you'll have to go through the application process again.

Customize by Adding Riders
In addition to your term life insurance policy, you can include a Critical Illness Rider, Waiver of Premium Rider, Endowment Benefit Rider, and Child Protection Rider.

Downsides

The Fine Print May Cause Issues
If you receive a diagnosis of "invasive cancer" within 90 days of receiving the policy, the payable benefit is greatly reduced.

If the insured commits suicide within 2 years of the policy, the only benefit paid is a return of premiums paid thus far. The actual benefit does not get paid. But this is typical of any life insurance policy.

Coverage Not Guaranteed
If you have certain medical conditions or make certain lifestyle choices, you may not get approved. If there are health issues, they may require a medical exam and an underwriter will then decide if you can get a policy, but it's not guaranteed.

Not Available in New York
Sorry, New York residents.

To file a claim with Ethos, email them at concierge@getethos.com. A representative with walk you through the claims process and let you know what documents you need to provide.

How It Compares

How does Ethos compare with other online life insurance agencies? Here are some other popular companies:

Fabric
Fabric's process works a little differently. You start with Fabric Instant, which is an accidental death policy. You pay the premiums monthly and can cancel at any time (up to age 60). You can also upgrade to a 20-year term life insurance policy, which will then cancel your Instant policy. They don't offer any other terms. This is less flexibility than what Ethos offers.

Fabric offers more to help to secure your family's financial future. It offers free tools, such as creating a will and organizing your spouse's financial accounts.

Quotacy
Quotacy is more like a marketplace. You can compare quotes and plans from top life insurance companies. You can choose from term, whole life, final expense, and disability insurance. So this may be better for those who have more complicated needs than just term life insurance. Quotacy does the "shopping" for you, and also works as your advocate to help make sure you get the best-fitting policy.

Haven Life
Haven Life also only offers term life insurance. You complete the application process online and Haven Life offers tools to help you choose the appropriate amount of coverage. They do offer instant coverage in many cases, but if you don't qualify for it, you have 90 days to have the medical exam completed and for Haven Life to make an underwriting decision.

Bottom Line

Ethos Life Insurance trims the fat in order to help make the process of getting life insurance simple and affordable. Ethos is a good choice for those looking for a fast, simple term insurance to protect their loved ones.

Because each applicant is different, we recommend that you obtain quotes from several life insurance companies to make sure you get the policy that covers you the best at the best price.

More from CreditDonkey:


Term Life Insurance


Is Term Life Insurance Worth It?


30 Year Term Life Insurance

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May
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2019

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