Ethos Life Insurance Review
Ethos is a life insurer launched in 2016 by Peter Colis (CEO) and Lingke Wang (CTO) to make life insurance accessible and affordable. The company is headquartered in San Francisco, California, and it offers online term and life insurance policies to people aged between 20 to 65 years.
The policy provides a coverage amount ranging from $50,000 to $1.5 million. Ethos offers its term life insurance in all the states except New York. These policies are issued through strong financial rating companies like Banner Life Insurance, Ameritas Life Insurance, Legal & General America. Terms available for the policy are 10, 15, 20, and 30 years with certain restrictions.
Calculating eligibility and setting rates for your policy uses some data, including motor vehicle records, family medical history, and medicines prescriptions. Moreover, one can fill the application within 10 minutes on its online portal rather than wait for long hours.
Also, people who qualify for the coverage don’t need to get their medical tests done. But, if Ethos needs more information regarding your health to calculate the eligibility and rates, you might be required to take a medical test.
Which events of life are most likely to affect your Life Insurance?
Ethos also offers AAA Life and TruStage policies. The AAA Life insurance policy is available in all the states and Washington DC except New York, and it is offered to people aged 65 to 85 years. The coverage granted is ranging from $10,000 to $25,000. At the same time, TruStage policy comprises simplified issue terms and whole life. It also has guaranteed whole acceptance life.
Pros and Cons of Ethos life insurance policy
It is significant to consider other’s opinions regarding Ethos life insurance policy before buying one for yourself.
Ethos life insurance had been rated 4 stars out of 5 for its overall performance. The best advantage behind buying a policy from Ethos life insurance is that its whole process is online, which doesn’t consume much of your time. It is really simple to fill the application form.
Quick application process and approval is the biggest factor due to which a customer chooses this company. Life insurance agents serve 24/7 assistance if anyone has any queries regarding the policy.
Ethos is a good pick for those who want to get a life insurance policy without any hassle quickly. Some of its policies also include accelerated death benefits. This, in turn, can allow a person to take some part of their life insurance payout when they are diagnosed with any terminal illness.
Unlike other companies, which require you to talk to an insurance agent before getting a rate quote, Ethos has transparent pricing, and it also allows you to get quotes and apply online.
However, if a person needs a policy that can add benefit or amend an insurance policy term, then Ethos might not be your best pick. The main disadvantage of the Ethos life insurance policy is that it doesn’t offer any rider-for-term policies apart from the accelerated death benefits, and it only has limited coverage.
If you want permanent life insurance or universal life policy, then you might have to consider other companies as well.
Cancelation policy of Ethos life insurance policy
While most of the other insurance companies offer a 10-days free look period when you can review your policy or decide to cancel it and get a full refund, however, Ethos offers a 30-days time within which you can cancel your policy to get a full refund. If you cancel the policy after 30 days, you won’t be entitled to any cancelation fee.
Concerns of the Consumers
It is always good to look for a company complaint ratio before buying a life insurance policy. According to the National Association of Insurance Commissioners (NAIC) analysis, both the companies, that is, American Life Insurance and Banner Life Insurance which issues the Ethos policies, have drawn fewer complaints to the state regulators over three years. This was not expected for large companies as such.
Moreover, the complaints of AAA Life insurance company is closer to what was expected from the company of its size. The issued complaint ratio signifies the number of complaints received by a company relative to its market share.
How to pick a life insurance policy that fits your needs?
Guidance for buying your first life insurance policy
Once you’ve decided to buy a life insurance policy, there are few questions that you need to ask yourself.
- What type of life insurance policy do you want?
- What should be the term of your policy?
- What amount of life insurance do you need?
- Do you need any life insurance riders?
After answering all of the questions mentioned above, make sure that the insurer you’re considering buying your policy offers the coverage you need. Note that the term and coverage match your needs. You also need to check whether the medical requirements of the policy is suitable to you.
Finally, don’t forget to go through the reviews and consumer complaints of whichever company you consider buying your policy from. If there are more negative reviews, it could be a red flag for the quality of service.
To get the best and suitable life insurance policy for yourself, you should compare quotes from several insurance companies.