Looking for a simple way to purchase term life insurance? Ethos offers life insurance with an easy online quote process. Best of all, many people can get a policy without having to pass a medical exam.
In this article, we’ll take a look at how the Ethos quote process works, the underlying financial strength of its carrier and more.
As part of the research for this piece, we shopped Ethos for a variety of term life policies. You can jump ahead to see how much we were quoted or read about the full life insurance shopping experience below.
Here’s What You Need to Know About Ethos Life Insurance
Ethos aims to simplify the process of shopping for term life insurance online. Through their 100% online application, you can get instant quotes. And there’s live support available if you need it during the shopping process.
Table of Contents
- What Ethos Offers
- No Medical Exam Policies
- A.M. Best Rating
- Getting a Quote Online
- Term Life Calculator
What Ethos Offers
Ethos specializes in term life insurance products. You can choose from any of the following terms:
- 10 year
- 15 year
- 20 year
- 30 year
Coverage amounts start at $100,000 and as go as high as $1.5 million. Any U.S. citizen between the ages of 20 and 65 can apply for a term life policy with Ethos.
Each policy sold by the company also offers an accelerated death benefit rider at no cost.
Simply put, this means if you become terminally ill while the policy is in force, you can get a portion of the death benefit while you’re still living. This money can be used to help with medical bills, among other things.
When you die, your beneficiaries will receive the face value of your policy minus whatever was already tapped if you chose the accelerated death benefit.
No Medical Exam Policies
If you’re looking to purchase term life insurance without having to take a medical exam, Ethos says it offers policies that use algorithms to replace the exam. Their system looks at your prior medical and prescription history, among other things, to assess your risk level.
But in some cases, their algorithms aren’t able to make a decision about you. Ethos says in this case, “a small number” of applicants will have to take a full-fledged medical exam.
In those cases, Ethos uses a Quest Diagnostics-affiliated company called ExamOne. The exam can be done at your workplace, at your home or at an ExamOne office. It typically includes the following:
- Physical measurements (height and weight)
- Blood pressure
- Blood draw
- Urine sample
A.M. Best Rating
All policies sold through Ethos are issued by Banner Life Insurance Company, a Legal & General America company, as carrier (not available in New York).
The A.M. Best Company gives Banner Life an A+ rating. That’s the second-highest possible mark from this credit rating company that focuses on the insurance industry. (A++ is the highest).
A.M. Best developed its proprietary ratings system because strength and financial stability are very important when you’re selecting an insurance company for the long haul. You want to be sure the company you’re getting a policy from today will be around in 20 years if your family needs to collect on a claim.
While no one can see into the future, A.M. Best’s scale is the closest thing we have to a crystal ball. By looking at an insurer’s balance sheet, financial strength rating, long-term issuer credit rating and other data points, A.M. Best is able to give the best educated guess in the industry about a particular company’s future claims-paying ability.
Getting a Quote Online
To get a quote through Ethos online, you need to enter five pieces of info:
- Do you currently use nicotine products?
- How is your health? (Average, great or excellent)
- What’s your home ZIP code?
- What’s your birthdate?
We pulled sample quotes for a few different potential customers, all of whom don’t use tobacco. Here’s what we found:
|Customer Profile||$500,000 Policy||$1 Million Policy|
|25 year old female in |
average health seeking a 30-year policy (New Jersey)
|35 year female in |
great health seeking a 30-year policy (California)
|45 year old male in|
excellent health seeking a 20-year policy (Georgia)
If you choose to purchase but later have buyer’s remorse for some reason, Ethos says it offers a refund period. The company will refund your first premium during the first 30 days that a policy is active for any reason.
Term Life Calculator
Shopping for life insurance is often complicated by the fact that a lot of people don’t know how much coverage to buy.
To address this dilemma, Ethos offers a coverage calculator when you get into the quote process.
Once the Ethos system has your age, birthdate, gender, tobacco use, general health assessment and ZIP code, you’ll answer four questions that the company says will help steer you in the right direction:
- How many kids do you have under the age of 18?
- What’s your yearly income?
- What’s your remaining mortgage balance?
- How much debt do you have?
The calculator will then suggest a recommended coverage amount for a certain term of years, along with an estimated monthly premium rate.
Money expert Clark Howard has long recommended purchasing an amount equal to 10 times your salary, before taxes. So, for example, let’s say you make $40,000 a year. Under Clark’s formula you would buy $400,000 of life insurance to replace your income for your beneficiaries in the event of your early death.
Term life isn’t a complicated insurance product. There’s no cash value to the policy like there is with whole life insurance. Term life just pays a straight-up death benefit if you die while the policy is in force.
If you have children or other financial beneficiaries to provide for, you need to have a life insurance policy in case you die prematurely.
And term life is the simplest and easiest policy you can get. Plus, it’s among the cheapest options. You pay one premium that never changes during the life of the policy.
But before making any purchase decisions, you’ll most likely want to read our guide on How to Buy Term Life Insurance.