Term life insurance features the most straightforward and affordable life insurance option by covering you for a set "term" (typically 10 to 30 years). If you pass away during the term period, your beneficiaries receive a cash payment.
Term life insurance with Ethos might be right for you if:
- Your loved ones would need to replace lost income while raising children or paying a mortgage
- You have short-term financial responsibilities such as loans, a new business, or credit card debt
- You want the most affordable life insurance coverage
- You appreciate the straightforward nature of term life insurance
The answer lies in the names. Term life insurance uses premiums to cover you for the determined "term" of the policy, expiring if not claimed within that timeframe. Whole life insurance can last your entire life if premiums remain current. Whole life policies also have the potential to accrue cash value, depending on the policy. Still, premiums typically cost between five and 15 times more than a term life policy for the same benefit amount.
Term life may provide a good match for someone seeking affordable coverage to replace lost income over a critical period, such as while raising children or paying off a mortgage. Whole life insurance offers options for those with complex financial situations or someone desiring the security of lifetime coverage.
Our policies are backed by established life insurance companies like Legal & General America, Ameritas Life Insurance Corp., Senior Life, and TruStage®. By combining Ethos' streamlined application with their coverage, we've shortened the application process to minutes, compared to weeks with traditional applications. With Ethos, you get the dependability of major insurers and the convenience of modern technology.
Most of our term policies are simplified issue, meaning the application process and underwriting decision come instantly based solely on third-party data and the applicant's responses to health questions within the application. No medical exam is necessary.
Simplified issue underwriting may be right for you if:
- You need life insurance, but you aren’t sure you’d qualify for a traditionally underwritten policy
- You want a simple process without medical exams or lab tests
- You thought you couldn’t get life insurance because of your age or health
We also offer fully underwritten term policies, a more traditional method that historically includes a complete application and medical exam. Ethos modernizes the process and doesn't require a medical exam but does include health questions within the application to help determine premium levels.
Fully underwritten policies may be right for you if:
- You’re in good health
- You’re looking for life insurance with a higher death benefit
- You don’t mind a longer application process
It's ultimately up to your beneficiaries to decide how to use the cash payout. People often choose to help cover things like:
- Home mortgages or rent
- Lost income
- Loans and debt
- Children’s education
- Living expenses
- Funeral costs
It's typically simple for your beneficiaries to file a claim and receive a cash payout. If you pass away while your coverage is in force, your beneficiary files a claim with your insurance carrier (as identified on your policy documents), and the carrier will issue the death benefit payout. Barring unusual complications, your beneficiary will receive an untaxed, lump-sum payment for the value of the policy's death benefit. For example, if you purchase $1 million in coverage, your beneficiary will receive a tax-free $1 million lump-sum payout.
A claim may not be paid if underwriting finds that parts of the application were answered untruthfully or if the claim is the result of death by suicide within the first two years of the policy being in force.
If you do not pass away during your term, you have options when your term ends:
- You can apply to extend your term to ensure you always have coverage.
- You can apply for a new policy with a fresh term length and coverage amounts
- You can decide to bypass extensions or not purchase a new policy
Find the answers on the Ethos FAQ page.