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Ethos Life Insurance was founded in 2016 by Peter Colis and Lingke Wang, who met at Stanford Business School. After being sold life insurance he felt was too big and expensive for his needs, Lingke knew there had to be a better way. Colis and Wang's goal is simple: Allow people to protect their families with simple and cheap life insurance.
Although it is relatively new to the life insurance industry, Ethos sells insurance policies from long-standing companies such as Legal & General America, Ameritas Life Insurance Corp., and TruStage®. With Ethos' easy-to-use online application process and these reputable companies' coverage, it can provide a life insurance experience online in a matter of minutes.
Ethos Life Insurance Plans
Ethos Life Insurance offers two main types of life insurance: whole life and term life insurance. Its whole life insurance policy is only available for seniors ages 66 to 85. Buyers within that age range qualify for guaranteed approval for $10,000 to $30,000.
The exact number varies based on medical records, age, and other factors. However, buyers are not required to undergo a life insurance medical exam. Ethos's guaranteed acceptance policy best suits seniors looking for funeral coverage.
Ethos also offers term life insurance from $20,000 to $2 million in coverage for buyers between 20 and 65 years old. Terms include 10, 15, 20, and 30 years. Quotes for the coverage you need are available on its website, with a specific price given once the entire application is filled out.
You must complete the application, including providing your beneficiaries' information, before you can see your final quote. The application is entirely online and, depending on the person and coverage limit, doesn't require a medical exam.
Importantly, life insurance companies can pull medical records. So be honest about your health and other personal information. Then, if Ethos can approve your application, you can decide if you want to undergo a medical exam based on premiums and available policy value.
Some policies are not available in Alaska, Louisiana, or New York.
Additional coverage options from Ethos
The Ethos term life policy has two extra features:
- Guaranteed renewable: Your insurer can not drop the insured if they pay scheduled premiums. This rider does not guarantee premiums or a set coverage limit.
- Guaranteed level premiums: A term policy's premium will stay the same throughout the policy. This rider wouldn't apply if the buyer renewed the policy.
Ethos policyholders also get free will services to help them pass on assets, choose guardians for their children, and protect their families. Non-policyholders can purchase wills for $149. It's free to change your will if the Ethos life insurance policy is active.
For non-policyholders, it is free to make changes for the first two years after the policy is active. After two years, it costs $19 per year to make changes to the legal will and $39 per year to make changes to the estate plan.
There is also the option to purchase an estate planning bundle, which includes tools to create a will, trust, and power of attorney, for $449.
Residents of Washington and South Dakota and TruStage® customers don't qualify for its complimentary will services.
How much does life insurance from Ethos cost?
Ethos makes it easy to get quotes for the cost of life insurance on its website, but a more accurate quote requires a complete application.
Quotes for a $1 million 20-year term policy are as follows:
Buyer | Health | Nicotine user | Cost |
40 yo male | Average | No | $70-$133 |
30 yo female | Great | No | $27-$56 |
20 yo male | Excellent | No | $33-$69 |
40 yo male | Average | Yes | $133-$473 |
30 yo female | Great | Yes | $56-$165 |
20 yo male | Excellent | Yes | $69-$196 |
Nicotine users will pay considerably more, sometimes at least twice as much, for the same coverage as their non-nicotine counterparts.
Find more about how much an Ethos policy may cost here.
How do I file a claim with Ethos?
Because Ethos is not the actual insurer of the life insurance policies to file a claim, a beneficiary must contact the issuing company of the policy:
Legal & General America
Those with a Legal & General America policy can call 1-800-638-8428 ext. 6974 or fill out its online claims form.
Ameritas Life Insurance Corp
Those with an Ameritas Life Insurance policy can contact 1-800-745-1112 or fill out an online claims form.
TruStage®
Those with a TruStage® policy can contact 1-800-779-5433 from 7:00 a.m. - 5:00 p.m. CT Monday-Friday or visit its claims website.
Who are the ideal customers for Ethos?
Ethos is an easy option for seniors looking for an easy and guaranteed funeral costs plan. However, those looking for more coverage or younger buyers with preexisting conditions may want to check out other insurers to see where they can get the best price.
Ethos offers affordable options, but customers get what they pay for. Ethos' low prices guarantee only low coverage. Ethos also lacks many increasingly popular riders that allow buyers to customize policies to meet their needs. Its pricing is also highly uncompetitive for nicotine users.
Ethos Life Insurance vs. State Farm Life Insurance
Ethos only offers term life and whole life to seniors. Alternatively, State Farm Life Insurance provides term, universal, and whole life policies. At State Farm, you can only obtain a quote by contacting a registered agent, unlike Ethos, where the entire process is online. In addition, State Farm offers more riders than Ethos, including a children's term rider.
In short, State Farm offers more options, including more comprehensive whole life policies if you're willing to undergo a medical exam. Ethos only offers more generous limits on term policies, which will eventually expire. State Farm's policies are also highly affordable when accounting for the death benefit size.
Neither company offers retirement and wealth-building policies, as you'd expect with companies like New York Life. However, both remain accessible to buyers on a tiger budget.
At this time, Ethos is not rated on the latest JD Power life insurance study. However, State Farm has the highest ranking for customer satisfaction, with a score of 839.
Ethos Life vs. Haven Life
Like Ethos, Haven Life Insurance allows individuals to obtain life insurance coverage 100% online. It does not offer a whole life insurance option. However, Haven does offer one complimentary add-on, the accelerated death benefit. It also provides policies up to $3 million, while Ethos' term policies can only go up to $2 million in coverage.
In both these instances, low prices on term coverage have a certain appeal. However, these policies will eventually expire. Online providers like this often downplay the lack of conversion options and/or the increased cost of converting to a permanent option later.
Why does this matter? According to a life insurance study from Penn State University, 99% of term policies purchased never pay out. In other words, 99% of term buyers outlive their policy, let it lapse due to non-payment, or otherwise never enjoy a return on investment.
A $2 million term policy has a certain appeal if you compare it with a $50,000 whole life policy. But the 1% odds of collecting $2 million compared to the 100% odds on a whole life policy if you keep up with payments is more sobering.
Ethos Life vs. Bestow Life
Ethos and Bestow Life Insurance are digital life insurance agencies quoting coverage 100% online. Unlike Ethos, Bestow offers no riders and only term life insurance coverage. Coverage at Bestow starts at $50,000, compared to Ethos' $20,000 minimum. The maximum coverage at Bestow is $1.5 million, compared to Ethos' $2 million maximum.
Neither company truly offers comparable conversion options. So if your term policy lapses with either Ethos or Bestow, you would be uninsured. If you wanted to switch to a whole life policy, you'd have to buy a separate one elsewhere.
Methodology
We look at what matters to customers to determine which life insurance companies perform. Companies like Ethos, Bestow, and Haven Life appeal to customers with low prices. Companies like State Farm promise stability, especially for customers who also have State Farm auto, home, and other insurance products. All of these are only single puzzle pieces.
Our insurance rating methodology factors in many things to provide an objective rating. Then we do more research to generate accurate reviews, ultimately to help consumers find the product that suits their needs.
Ethos Life Insurance FAQs
If you are approved and ready to activate your policy, you can email protection@Ethoslife.com. If you need help with your payment, you can email payments@Ethoslife.com. If you have other questions, you can email support@Ethoslife.com or call (415) 697-3331.
You have a free 30-day look period to review your policy documents and decide if it's right for you. If you cancel within 30 days, you get your money back. If you decide later to cancel, you can do so without any fees.
If you miss a premium payment, you have a grace period of 31 days to make it. After that, your policy will lapse.
Your coverage is active as soon as your policy application is approved and you pay your first month's premium.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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