Ethos Life Insurance Company Review

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Why should you buy life insurance from Ethos? You have better things to do than to study life insurance, read fine prints, getting medical records or the big one, schedule an exam.

Yes, Ethos offers no-exam life insurance up to one million dollars without taking the exam—for those who qualify.

Ethos Life capitalizes on the notion that life insurance agents are irritating creatures who will upsell you coverage for no reason. They are commission-driven individuals who upsell you expensive plans and will call your phone nonstop until you change your number.

According to their site, they offer modern and ethical life insurance from a salaried team to work with you. In this review, I will dig a little deeper into their products, company, and rates to find out if they are the right choice when buying life insurance.

About Ethos Life

First things first. Ethos isn’t an insurance company. They are a licensed agent who offers term life insurance from Assurity Life Insurance Co. It was launched in June 2018 with a few celebrity investors such as Robert Downey, Jr., Kevin Durant, and Will Smith.

They are financially backed by Roc Nation entertainment company, Stanford, Sequoia, Accel, and GV (formerly Google Ventures).

About Assurity

Based in Lincoln, Nebraska, Assurity’s mission has been to help people through challenging times since 1890. They are a mutual company, which means they have no shareholders or publicly-traded stock. Instead, they are owned by their policyholders.

They operate the business with the policyholder’s interest in mind. A.M. Best Company, a benchmark in insurance industry ratings, has rated Assurity Life A- (Excellent) with stable outlook.

Related: Assurity Life complete review

Products Offered by Ethos Life Insurance

Ethos only offers Assurity’s term insurance even though Assurity offers all types of coverage such as universal, whole life, and even disability income. In the quest of making life insurance as simple as possible to the visitors, they had to choose the simplest product (term life insurance) since other permanent policies require illustrations and are more complex.

Level Term Life Insurance

As the name implies, term life protects for a specified period, typically 10–30 years. It’s a favored solution for young and healthy individuals because it offers the best bang for your buck as opposed to whole life, where the premiums can be ten times or more for the same amount in insurance.

Simply put, term life is meant to protect your loved ones during the prime of your life. “Level term” means that your premiums and death benefit remain fixed throughout your initial term period (the policy length you chose).

After that period has ended, you may convert your policy, before the age of 70, to permanent coverage without proving insurability or undergoing an exam, or you can keep it and pay annually until the age of 95.

Plan Highlights

  • Issue ages: 18–75
  • Term periods: 10-, 15-, 20- and 30-year terms
    • A 10-year plan for ages 18–75
    • A 15-year plan for ages 18–70
    • A 20-year plan for ages 18–65
    • A 30-year plan for ages 18–55
      • Non-tobacco, 18–55
      • Tobacco, 18–50
  • Face amount: $25,000–$10,000,000
    • Up to 1,000,000 in no-exam
  • Renewable to age 95
  • Policy conversion period: before the age of 70 years old
  • Licensed in all states except NY

Riders

  • Accelerated death benefit at no extra charge
  • Accident-only disability income
  • Children’s term
  • Critical illness benefit
  • Disability waiver of premium

Related: What are life insurance riders?

Do You Need to Take an Exam?

At Ethos, you can get up to $1,000,000 term life insurance without taking the exam. However, this isn’t up to them. It’s up to the insurance carrier, Assurity, and the overall risk you pose. In other words, NOT everyone will qualify for underwriting without the exam option.

Digging Deep into Ethos Life Insurance

At Ethos, they pledge to get rid of the middleman (agent or broker) and offer you a streamlined application process through which you can get approved for under 10 minutes, all by skipping the exam and the pushy salespeople.

If you go to their “About” page, you’ll find a team of graduates of prestigious schools, such as Harvard and Stanford, teamed with celebrity investors and backed by major corporations.

You may be asking yourself what’s not to like?

Keep reading and find out that they created predictive analytics, an algorithm to predict one’s risk to the carrier based on overall risk, type of debts, and to treat each individual as a person, not a risk (I thought all carriers do that?? They call this underwriting!).

They claim that you have better things to do than study life insurance, so by building this technology, they can make life insurance uncomplicated and also come with Affordable Rates.

I get it! You can get a ride from Uber, use an app for dating, order food on your smartphone, and even get your prescription filled by texting a physician on an app. What’s wrong with buying life insurance online without these annoying salespeople? Who talks on the phone anyway?

Ethos Pros

  1. No-exam up to $1,000,000: This is an advantage for those who can qualify for this plan. Truth be told, we at Effortless Insurance also sell Assurity, but they only allow us to sell up to $500,000 with no exam. Kudos to Ethos for getting this number to a million.
  2. Online process: Yes, most policies involve calling and filling out an application. Doing everything online may offer extra convenience for those who crave online interaction. With a simple, fast, and slick website, I must say I’m impressed. They made it easy to run quotes, apply for coverage, all in a modernized process that is hard to resist.
  3. If you are young, under 30 and in good health, Assurity’s no-exam term life offers competitive prices.
  4. Referral program: Ethos offers a $15 Amazon gift card if you refer your friends and family. This isn’t available in all states.

Ethos Cons

  1. Ethos sells only term life insurance. Yes, to keep things easy and straightforward, they don’t offer permanent coverage. If you seek universal or whole life insurance, Ethos isn’t for you.
  2. No phone support. Before you think this is an advantage, try to imagine that you need to speak to a live human, but all you can do is to send an email.
  3. They only offer Assurity. While Assurity is an outstanding company, dozens of other A-rated carriers have much better pricing than Assurity. The problem is you wouldn’t know because Ethos offers only Assurity. You pay for a sleek web application and the stories about agents who will upsell you at any chance they get to make a quick buck, so you’d rather deal directly—but you’re not. They still make money selling you one plan without comparing to other companies to see which one has the best rate.
  4. You don’t know enough about life insurance to make an informed decision (Sorry for being brutally honest). Life insurance was never meant to be purchased as instantly as buying your protein shake from Amazon. Life insurance is too nuanced and requires a more diverse approach than reading an ingredient list on a can. Your overall health and financial needs, along with your income, play a critical role in choosing the right coverage amount and type.
  5. If you aren’t in good health or older, you’d better shop somewhere else. Assurity’s prices aren’t competitive for individuals over the age of 50. Moreover, if you have pre-existing conditions, other companies would be a better fit based on your situation, but you wouldn’t know that because they only offer one company from which to choose.

Ethos Life vs. Other Carriers’ Sample Monthly Rates

Male 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $13.05 $19.01 $40.44 $110.28
 Protective $13.05 $17.80 $41.26 $110.61
 AIG $13.17 $19.37 $42.24 $118.76
 Pacific Life $13.18 $18.79 $41.44 $110.29
 Lincoln$13.28 $18.16 $41.15 $109.77
 Mutual of Omaha $13.55 $20.64 $45.80 $134.59
 Principal $14.00 $18.55 $41.19 $109.81
 North American $14.30 $20.02 $43.56 $115.06
 SBLI $14.59 $20.76 $49.60 $147.70
 Ethos Life (No-Exam) $18.00 $31.00 $70.00 $186.00

Female 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $11.61 $15.39 $32.21 $78.83
 Protective $11.76 $15.44 $31.65 $77.17
 AIG $11.67 $16.59 $33.90 $87.98
 Pacific Life $11.71 $16.00 $31.83 $77.91
 Lincoln$11.82 $15.67 $31.57 $82.47
 Mutual of Omaha $12.26 $17.63 $35.69 $101.91
 Principal $12.54 $16.19 $32.07 $77.18
 North American $12.76 $16.94 $34.10 $81.84
 SBLI $13.06 $17.72 $34.71 $90.37
 Ethos Life (No-Exam) $14.00 $25.00 $55.00 $130.00

Male 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $20.00 $32.68 $73.52 $204.89
 Protective $20.01 $28.75 $75.24 $207.86
 AIG $20.01 $30.27 $76.86 $218.79
 Pacific Life $20.19 $30.26 $75.22 $207.36
 Lincoln$20.39 $30.50 $74.99 $213.02
 Mutual of Omaha $21.29 $32.90 $82.78 $249.19
 SBLI $21.32 $34.97 $87.00 $286.85
 Principal $21.43 $30.54 $75.82 $213.06
 North American $22.44 $33.44 $79.20 $218.68
 Ethos Life (No-Exam) $30.00 $55.00 $123.00 $330.00

Female 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $17.37 $25.20 $58.35 $150.93
 AIG $17.44 $26.85 $58.05 $161.51
 Pacific Life $17.51 $25.69 $56.10 $144.97
 Protective $17.53 $25.11 $54.88 $138.51
 Lincoln$17.68 $25.64 $55.31 $144.95
 SBLI $18.18 $27.33 $63.08 $173.03
 Mutual of Omaha $18.28 $28.17 $61.71 $172.65
 Principal $18.52 $25.81 $57.58 $147.79
 North American $19.36 $28.16 $61.60 $154.88
 Ethos Life (No-Exam) $23.00 $45.00 $95.00 $229.00

Male 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 AIG $32.83 $53.35 $141.42 $415.02
 Lincoln$32.91 $53.12 $142.11 $409.07
 Protective $33.78 $51.67 $141.51 $393.73
 SBLI $34.34 $55.91 $147.73 $457.62
 Pacific Life $34.72 $54.10 $141.44 $406.55
 Principal $36.21 $54.51 $145.08 $418.34
 Banner $36.33 $54.74 $141.41 $411.08
 Mutual of Omaha $36.34 $59.56 $157.60 $470.64
 North American $39.61 $60.28 $150.92 $427.24
 Ethos Life (No-Exam) $55.00 $104.00 $234.00 $636.00

Female 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $25.98 $46.96 $110.42 $294.55
 Protective $28.50 $43.52 $101.32 $265.48
 AIG $25.99 $44.80 $109.78 $311.56
 Pacific Life $28.73 $44.50 $103.19 $274.04
 Lincoln$27.48 $43.41 $102.73 $282.01
 Mutual of Omaha $30.32 $48.38 $112.88 $327.88
 Principal $30.35 $44.89 $105.26 $283.06
 North American $32.12 $48.84 $113.08 $283.80
 SBLI $29.04 $43.67 $103.07 $270.11
 Ethos Life (No-Exam) $38.00 $82.00 $182.00 $441.00

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Jan 2019 and are subject to underwriting approval.*

**Source: Ethos sample rates**

Bottom Line

There are a few other companies, such as Sagicor and Haven Life, who follow suit with Ethos—online application with no-exam and no agents. They all build upon this perception that agents are the enemy and will rob you in broad daylight any chance they get.

My advice to you is this: If you want to get the best life insurance prices, you will need to comparison shop before making a selection, the more, the merrier.

Instead of trying to find the “best deals”, find a broker that you can trust. He/she will run quotes from dozens of companies and place you with the best one for your situation.

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May 13, 2019 | Categories: Company Reviews | 0 comments

About the Author: Ron Attias

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