Updated March 7th, 2019
Ethos Life Insurance Review
In the article you will find our Ethos Life Insurance Review, let’s start by looking at Ethos the company.
Ethos is based in San Francisco California and were founded in 2017. Ethos launched with the help of several backers: Sequoia Capital, Stanford University. Entertainment and Celebrities such as: Arrive, a subsidiary of entertainment company Roc Nation. Actor Robert Downey Jr.’s Downey Ventures. Basketball player Kevin Durant’s Durant Company. Actor Will Smith’s Smith Family Circle. With the help of these many investment partners the company’s focuses on providing term life insurance to consumers through a completely online experience.
Ethos is one a the very few companies in the industry taking a leap of faith projecting that the future of life insurance sales will be a complete online experience. As you can see below this is what Ethos promises its visitors on their website when researching life insurance.
Ethos is not the only company who is trying to make it big in the online life insurance space. A major competitor in this space is MassMutual Financial Group this company owns subsidiaries who are called Haven Life and Coverpath. Both of these subsidiary companies offer an online experience however they have MassMutual a $160 Billion dollar company backing them.
It seems that a large enough consumer group is searching for an online solution for life insurance. This makes sense and I think we all can agree that there is an expectation for most companies to provide an online experience in todays age.
In this Ethos review we will cover the following topics:
So let’s get started.
Complete Online Experience
Ethos is very unique in that they offer a complete online experience to their customers. The experience is marketed as quick and easy.
No Medical Exams
Thats right! Most life insurance companies require that you fill out an extensive life insurance application and then complete a medical exam to get coverage. This exam requires you have blood drawn and a urine specimen collected to be approved.
This is a very annoying step for many people and can actually stop someone from acquiring coverage. Well great news you will not be required to take a medical text/exam to get life insurance with Ethos!
Special note: If you are applying for $1,000,000 or more then Ethos may require a medical exam to be approved.
Remember Ethos is really just a marketing company. They are not the ones actually providing the life insurance protection. So the financial of Ethos doesn’t actually matter.
Ethos provides access to policies issued by Assurity Life Insurance Co., a Nebraska-headquartered company founded in 1890. Assurity Life Insurance Company has over 120 years of experience. The company enjoys an A- rating from A.M. Best. This indicates an excellent outlook in the future in terms of creditworthiness and claims paying ability.
No Permanent Life Insurance
Unfortunately Ethos only offers temporary life insurance. They do not offer any coverage types that would provide lifetime coverage such as whole life insurance ,universal life insurance, index universal, variable life insurance.
In addition the term insurance products are not convertible to any permanent products in the future. Learn more as to why you may want a convertible term insurance policy.
Ethos is again a 100% online experience so you will not be speaking to an advisor or insurance expert. For some this may be looked at as a positive but there is also a huge negative to this as well. There is a saying “you don’t know what you don’t know”.
When s comes to life insurance planning there can be several cases where not speaking to an advisor or professional can lead to improper purchasing of life insurance.
Ratings are established by third party companies determine how strong a company is.
- A.M. Best Rating (Financial Strength): A-
- Weiss Rating (Safety Rating): B+
As you can see this makes Ethos has partnered with a very strong insurance provider for their clients.
To recap Ethos only offers term insurance policies. The term policies they offer are very standard for the industry.
The products are offered to people from ages 18 to 75.
They offer term lengths of: 10 years, 15 years, 20 years, 25 years, and 30 years.
Coverages range from as low as $25K all the way to $10 Million.
In addition to the basic term insurance coverage Ethos provides additional riders to consumers so they can customize their life insurance policy to fit their exact needs.
Critical Illness Rider
The Critical Illness rider pays out a lump sum if you are diagnosed with invasive cancer or carcinoma.
Child Protection Rider
The Child Protection rider covers children up to the age of 25.
Endowment Benefit rider
This rider returns a portion of your premiums after a certain time.
Waiver of Premium rider
This Rider means you are not obligated to pay premiums if you become totally disabled.
Remember Ethos is a marking company however they are on the cutting edge of the insurance industry. This is where insurance providers are headed in the future…100% online experience. The company has made a baby step and they are only focusing on the simplest of products (Term Insurance).
If you are comfortable with doing your own research to figure out how much or little you need for coverage. Plus you are comfortable with the lack of contact with an advisor. Then Ethos may be just right for you to lock in coverage for you and your family.