Ethos Life Insurance

Ethos Life Insurance Review

Ethos operates under the umbrella of Ethos Technology, founded in 2016. The company is a direct-to-consumer life insurance provider that offers modern, ethical life insurance. The ethical part of the equation is salaried instead of commissioned insurance agents. However, you probably won’t have to work with an Ethos agent since the company does the bulk of its term life insurance sales via an online platform with a ten-minute application process.

Ethos policies are underwritten by Assurity Life Insurance Company, which has been in business since 1890, and RGA, a top insurer rated “Superior” by. A.M. Best.

Pros

• No medical exam for most policies
• Simplified application, fast approval and claims processing
• Salaried employees don’t rely on sales commissions

Cons

• Not for those who want to work extensively with an agent

How Ethos Life Insurance Works

Ethos sells term policies you pay for month-to-month to help cover expenses if you die. Ethos offers life insurance from $25,000 to $10 million, and monthly payments can be anywhere from $50 to several thousand dollars depending on the value of the policy you choose.

Ethos offers only term life insurance with coverage over a specific timeframe, like 10 or 15 years. You pay monthly premiums to keep coverage active, and if you die during that term, your beneficiaries receive the value of your policy. If you outlive that timeframe, you can apply for a new plan when the old one expires if you are under 75 years of age.

Who Can Apply for Ethos Life Insurance

Residents and green card holders from any state except New York are eligible to apply for Ethos life insurance. The company does not require medical exams in most cases.

Ethos policies range from 10- to 30-year terms. Adults up to age 55 qualify for any term, and those from 56 to 65 years of age can buy up to a 20-year term policy. From 66 to 70, the longest term is 15 years, and if you are in the 71 to 75 age range, you can buy a policy to cover you for 10 years.

Ethos Life Insurance Costs

Ethos life insurance policy costs vary depending on several factors. You will find an online quote calculator on the company’s website. Answer a few questions to get a quote, including:

1. Gender and age
2. Nicotine use
3. Health status
4. State of residence

To give you an idea of how much a life insurance policy purchased through Ethos might cost, we used the rate calculator for the scenarios in the chart below.

*Quotes calculated May 1, 2019 and are based on estimates for Assurity policies

How to Buy Ethos Life Insurance

Fill out the five-question form on the website to receive a quote. Select the policy, term length, and coverage level, and if the price is right, there are three steps to buying the life insurance policy:

1. Complete an online application with more detailed information, such as your medical history and beneficiaries.
2. You may be approved immediately, or your application will go to underwriting for review. In some cases, you may be asked for additional information, such as medical exam results.
3. Once you have approval, you will receive a final quote, which may be slightly more or less than the original number. Many reviews report a lower final quote. Accept the policy if you want it, and Ethos will send you a contract for your signature. Once the contract is in place, you’ll begin paying monthly premiums on your life insurance.

Ethos Life Insurance Complaints

Ethos Technology, the company behind the life insurance, is accredited with an A+ rating from the Better Business Bureau. No Ethos customers have lodged complaints with the BBB. ConsumersAdvocate gives Ethos 4 out of 5 stars, with high scores for company stability, reputation, policies, and coverage. The company gets an excellent 5-star rating from Trustpilot, where an overwhelming percentage of customers gave Ethos a 5-star review. ValuePenguin grades the company a 3.5 out of 5, partially because Ethos does not offer whole life insurance. However, whole and term life insurance are very different policies, and a company specializing in one or the other has the potential to provide better service compared to a company with agents who must be well-versed in both.

Assurity Life Insurance Company, which underwrites most of Ethos policies, has an A++ rating for financial strength from AM Best, which is the highest possible score. Assurity has a lower than average complaint score from the National Association of Insurance Commissioners, which means it receives fewer complaints than most insurance companies.

Ethos Life Insurance Q&A

• Can I get an Ethos life insurance policy if I have health problems?
  You can apply, then Ethos will decide on an individual basis if your health precludes your qualifying. As is the case with all life insurance companies, the better your health, the more likely you are to receive coverage, and the lower your premiums will be.

• Does Ethos offer a grace period if I miss a life insurance premium payment?
  The company offers a 31-day grace period, but if you don’t pay within that time, Ethos will cancel your life insurance.

• How would my beneficiary receive the death benefit from an Ethos life insurance policy?
  Your beneficiary must file a claim with Ethos when you die to start processing the payout from the policy. This can feel impersonal, but it does ensure your beneficiary receives the appropriate benefits. Let your heirs know either directly or in your will how to contact Ethos.

• How can I contact Ethos about buying life insurance?
  Customer service representatives at Ethos are available by phone, email, or text message from 7 a.m. to 8 p.m. Pacific time.

• Does Ethos offer riders for its life insurance?
  Yes, the company offers child benefits and critical illness riders to extend benefits on life insurance policies.

Conclusion

Ethos simplifies applying for life insurance and removes the commission incentive from policy sales, so agents can focus on providing you with the best service and price. If you are willing to exchange direct communication with an agent for fast life insurance approval and cost savings, consider working with Ethos.