Life Insurance Basics
What kind of life insurance do I need?

There are two main types of life insurance: term life insurance, and permanent life insurance.

Term life insurance is the most simple and affordable option. It provides coverage for a set period of time or “term,” typically 10–30 years, and is designed to protect your dependents. If you pass away during the term period, your beneficiaries will receive a lump-sum payment of the policy proceeds.

Permanent life insurance can be more complex and costly (sometimes 10-15 times more expensive than term life insurance). It can provide coverage for a fixed or variable amount, typically for your entire life. Some permanent life insurance policies let you access cash value with a policy loan, a withdrawal, or a partial surrender from the policy. Withdrawals, partial surrenders, and outstanding loans, will usually reduce the amount paid to beneficiaries.

At Ethos, our goal is to insure and protect as many families as possible. Offering term life insurance lets us do so in a way that is simple and affordable, protecting families during a time when they need it most. Term life insurance might be right for you, particularly if:

  • You need coverage to replace your income over a fixed period of time (like when you’re raising children or paying off a mortgage)
  • You want the most affordable coverage which provides insurance for a specific period of time (like while you are working and saving for retirement)
  • You want a streamlined and straightforward process to quickly provide your family with protection when they need it most (like while you are a wage earner, covering household expenses)