Life insurance is a necessity for any young family. Have you ever wondered what would happen to your family if you weren’t there to provide an income? Their life would change completely. The current style of living they know would vanish in an instant.
Term life insurance can ensure that doesn’t happen to your family. You might be thinking term life insurance is another expense you can’t afford. However, you’ll be surprised at the cost of life insurance offered by Ethos Life Insurance (hint: it's a great deal).
In this article, we’re going to review Ethos Life Insurance. They’re what’s called an insurtech (not to be confused with fintechs). This means Ethos makes heavy use of technology to process life insurance applications and keep costs down. Their close competitor, Haven Life, also plays in this space.
Quick Summary
- Low cost online term life insurance
- Online application process is very easy to use
- No medical checks required and instant approval in some cases
Determining Your Insurance Need
Ethos can be found at getethos.com. The first thing you’ll see on their homepage is a section to get a quick quote. Ethos has made the process of receiving a quote extremely simple with only four fields (as of this writing).
Their quote will give you a fairly accurate number of how much insurance will cost you. But the question remains: How much insurance should you get?
In general, you want 10X your income. If you are making $50,000/yr, you’ll want $500,000. This provides for an additional ten years of income for your family. It also assumes you are the bread winner and have children.
For most applicants, they’ll likely find the monthly cost to be well below $100. The more life insurance you need and the older you are, the more costly it will be.
Ethos Offers Only Online Term Life Insurance
Ethos offers only one type of insurance - term life insurance. This means fixed monthly rates for the term of the insurance.
Because they are focused on one type of insurance, it also means no upsells to other insurance products. If you’ve ever gone through a traditional insurance company, you know what we mean here.
One of their favorite upsells is whole life insurance, which is a completely different product.
This leads to the question: Why no other products? Ethos has such a streamlined process because it focuses on a single, simple product. If it tried to sell whole life, which is a very complex, commission driven product, Ethos wouldn’t be able to provide the same level of service and pricing.
The Application Process
Etho’s outlines their application process like this:
Ethos’ application process is entirely online, unlike Haven Life who also offers an 800 number, chat, and even a clearly displayed email address to send inquiries to.
After getting your quote, you’ll start moving through the application process. There is an outline on the left side of the application page showing the section of the application you are in and how much has been completed. The application sections include:
- Basic info
- Your lifestyle
- Your health
- Payment info
- Confirmation
Get A Free Quote
Check out this tool and get a free quote from Ethos right now:
Is Ethos Reliable?
Like Haven Life, Ethos has high-quality backing by some of the largest insurance companies, including Munich Reinsurance America, Aon, Assurity, and RGA.
Policies are issued and guaranteed by Assurity, which is rated A (excellent) by A.M. Best.
In the event you need to file a claim, you can send an email to concierge@getethos.com. Once again, this is unlike Haven Life’s contact options. You’ll need to be comfortable with the lack of opportunities to speak with any one on the phone.
Additional Questions And Considerations
Q.) Will I be approved?
While the Ethos application process is simple and fast, it doesn’t necessarily mean you will be approved. In some instances, a medical exam may be required. Even if you have health issues, Ethos encourages everyone to apply.
This is the starting point for your application regardless.
Q.) When are payments due?
Ethos will let you know when payment is due each month. There is a 30 day grace period. But you don’t want to go past the 30th day because it will result in your policy being canceled.
You can also cancel your policy anytime, but you’ll need to email concierge@getethos.com to do so.
Q.) Is Ethos available in my state?
Ethos is available nationwide except in New York. Hopefully that changes soon and they are available everywhere.
However, from talking to their team, it sounds like Ethos should be available everywhere very soon!
Final Thoughts
Ethos isn’t a traditional insurance agency, and it shows. By focusing on a single, simple product, they’ve been able to cut cost and offer extremely competitive pricing to customers.
While there isn’t a front facing phone number or chat, you can contact them through email. You’ll just need to be comfortable with the lack of contact options. This doesn’t mean you should avoid Ethos because you think they are a fly-by-night company. That isn’t the case at all.
But if phone and chat are contact options you need, you might want to try Haven Life. It only takes minutes to compare.
Do you have term life insurance yet or could your current policy be better?
Ethos Life Insurance Review
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Pricing - 95
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Ease of Use - 90
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Products and Services - 75
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Customer Service - 80
Summary
Ethos Life Insurance offers term life insurance quickly online.
Heather Lekins says
Sounds like a great option to protect my family!
Linda says
What happens if the insured doesn’t pass during the term? Does ethos renew at same cost or do you need to reapply at a higher cost?
Robert Farrington says
The policy expires and you would need to get a new policy. I’m not aware if Ethos policies offer a renewal.
john deleon says
i bought ethos insurance and people were great to deal with every thing was explained well and i and very happy with my choosing this company
Iva says
Does this work if I want to go the hospital? Or dentist?
Robert Farrington says
No, this is life insurance, not health insurance.
Fred says
I’m 66 and Haven doesn’t insure anyone over 64 so that is out.
How reliable is Ethos? When filing a claim, it seems that a phone number to contact someone would be necessary. I don’t mind the lack of phone number but it seems odd that there is no way to contact them except by email.
Which is the best and most cost effective term insurance in your opinion? 66, good health, never smoked, non drinker. etc.
Robert Farrington says
Ethos is backed by major AAA rated insurance companies, so they are safe and reliable. However, the cater to millennials – so that’s why their website and service is how it is.
For you, based on your age, I would first ask if you even need life insurance. If that’s still a yes, then an agent is your best bet to find you the best rates and terms.
Roger says
Will the premium rate be locked or will it change every year?
Robert Farrington says
It’s level term insurance – so your premium is locked for the duration of the term.
Melody fletcher says
How can I find out if the policy can be renewed and if the cost goes up or stays the same
Robert Farrington says
These are level term policies only. As for renewal at the end of the term, I don’t believe so – if you get a 20 or 30 year policy, the goal is to never have to renew, because at that time of your life, you should have your mortgage paid off and have sizable assets (since you’re probably getting close to retirement).
Nick says
tl:dr; don’t give a company your credit card upfront. I was dumb and they went ahead and starting billing me for a policy I never signed. Shop around. Awful company.
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My advice, don’t make my mistake. Ethos asks for a credit card as part of the application process and I was dumb enough to give it to them. Even though I never ultimately signed the policy I was “approved” for (I found a much cheaper one after I got quoted from them), they went ahead and started billing me. I never signed a contract or recieved a formal policy, I only noticed this as I was checking my credit card bill last month.
Basically Ethos is a slick website (masking as some innovative startup so it appeals to millenials) that sells insurance for Assurity – a giant underwriter that has been selling policies on main street for decades to your parents.
(btw @Robert Farrington, they are rated A-, not bad, but not AAA – it’s super easy to google things ¯\_(ツ)_/¯ ).
ps. Pro tip for people reading this. Term life insurance is a commodity so shop around. For example, if you’re looking for a 20-year policy and you find a cheaper rate (say 30% which I finally did), calculate how much money you will save over the life of the policy- it adds up to a lot (especially when you take that same money and invest it).
There is no reason to pay a premium for the same level of coverage, as at it’s core, term life insurance is a very simple product. You outlive the policy (which is good) and they keep the money; tragedy strikes, and they pay out to your family. It’s a simple, if macabre, math problem.