Ethose Final Expense Review | Did You Read The Fine Print?
last updated on February 4, 2023Have you heard of Ethos final expense insurance? Are you considering purchasing a funeral expense plan to cover your end-of-life expenses? If so, this article is a must read.
While Ethos may initially sound like a good option, there are factors you need to know before you lock in your coverage.
Ethos seems affordable and their advertisements and sales copy sounds good. But there are hidden cost increases and limited coverage options. Many individuals have been taken by surprise when they go to claim their benefits.
Ethos is not actually an insurance company! Yeah, you read that right! So, how can Ethos sell you insurance coverage? Is the coverage reliable? And what fine print problems will you face when you buy a plan with Ethos? Read on to find the answer.
This article will answer the questions and concerns I just raised as well as: How can an insurance company automatically cancel your coverage? And what are the regular cost increases?
Read on to learn more.
NOTE: For a free burial insurance quote click the Get A Quote Button or call 888 626 0439 and one of our friendly life insurance specialists would be happy to provide you with answers and a free quote in less than five minutes.
Table Of Contents:
- Video Reviews
- How Do Ethos Products Work
- Is Ethos A Reliable Company?
- Ethos Pros
- Ethos Cons
- What Products Do They Have
- What Plans Should I Avoid?
- What Are The Fine Print Problems
- How Much Does It Cost
- Canceling Policies
- Ethos Customer Service
- Ethos Customer Reviews
- How Do I Make A Claim?
- When Are Benefits Paid?
- Ethos Company Background
- Should I Buy An Ethos Plan?
- Alternatives To Ethos
- Final Comments
- FAQs
Video Reviews
To get an overview of the issues and concerns when you buy a policy form a company like ethos, take a look at the videos below. After watching them I would suggest finishing this article too.
- This video discusses the issues with Term Insurance products and Guaranteed Insurance products. Click the link below.
- This video goes into more detail on the issues you will face when buying a plan with Ethos. Click the link below.
How Do Ethos Products Work
Final Expense insurance is a type of policy meant to cover your funeral and other end-of-life expenses. This policy protects your family and loved ones from debt and financial burden when you pass. It is a very good idea for anyone over 45/50 years of age to get a final expense plan.
If your family cannot cover your funeral they will have to go into debt or abandon your body to the local county or state to be buried in a pauper’s grave.
Ethos advertises two main products that can be applied to your funeral expenses, Term Insurance and Guaranteed Insurance.
These products offer coverage for individuals who qualify. However, they both have some very deceptive fine print!
Is Ethos A Reliable Company?
When choosing the insurance provider you will take out a plan with, it is important to research their reputation and customer satisfaction. In this aspect, Ethos partners have a lower complaint ratio than the national average.
Ethos also has a very good rating from Trustpilot, they carry a 4.6/5. Ethos is known to be fast and convenient. View the reviews here.
The only area of concern is the actual products themselves. Ethos has misleading advertisements and fine print clauses that have misled people. Many have bought insurance thinking they have coverage when they actually do not. Other individuals have gone to make a claim and the realized the insurance canceled years ago.
Those are issues I explain further in this article. Keep reading!
Ethos Pros
The main pros of Ethos are:
- Fast and convenient applications and quotes
- No medical exam
- Accelerated death benefit in all products
Fast and convenient applications and quotes
Ethos main focus is to provide fast and convenient insurance applications for customers. They have developed specific software to ensure their customers have a very fast quote and application process. However, many companies are focusing on providing convenient online services nowadays.
No medical exam
Ethos does not require their customers to visit a doctor and get a medical exam to apply. This saves you time when signing up for coverage.
Accelerated death benefit in all products
Ethos does provide accidental death coverage with their plans. This means if you die due to an accident (NOT natural causes) your family will receive a death benefit.
However, I would like to note that these pros are very common with many insurance carriers. None of them are unique to Ethos themselves. So while they are convenient, they shouldn’t be deciding factors.
Ethos Cons
The main cons of Ethos are:
- Limited product options
- No customizable riders
- Problematic coverage
- Low coverage limits
- Incomplete quotation tool
Limited product options
Ethos only offers two products. That’s it, Term Insurance and a Guaranteed Whole Life insurance. This is VERY limited. Many insurance providers offer multiple plans and customizable riders.
No customizable riders
Ethos only has one rider, the accidental death benefit rider. They offer no other riders to increase your coverage or protect yourself from other accidents and situations.
Problematic coverage
As you will see in the “Fine Print Problems” heading, Ethos has clauses associated with the whole life policy and term insurance that affect your coverage and the premiums rates.
Low coverage limits
Ethos coverage limits range from $10,000 to $25,000 for their whole life product and $20,000 to $1.5 million for their Term insurance. While that may sound like a lot, compared to other insurance companies’ coverage limits, it is restrictive.
Incomplete quotation tool
While Ethos quotation tool is fast and convenient, they do not provide you with all the information you need. When requesting a quote, you are given a range of prices. But you are not shown the coverage limits the quotes are for. So you would see $56 to $129 for a woman who is 66. But you wouldn’t be shown the actual coverage limits.
What Products Do They Have
Ethots sells two main insurance products. Term Insurance and Guaranteed Insurance.
Term Insurance
Term insurance is a type of insurance that terminates or ends after a certain period of time. This type of plan also has an age limit. Ethos offers this product to individuals who are between 20 to 65. The length of the term and the restrictions are as follows:
- 20-50 years of age, 30 year term length smokers and nonsmokers.
- 51-60 years of age, 20 year term for smokers and non smokers.
- 61-64 years of age, 15 year term for smokers and nonsmokers.
The term is the number of years you pay the policy and your coverage is active. When your term ends, so does your coverage. You can renew the term once up to the age of 64 and the insurance will end at 80. Premiums increase each year with every renewal.
Your options for coverage with Ethos term insurance is between $20,000 to $1.5 million. The benefits provided from Ethos are more restrictive than other companies, Haven Life for example whose cap is $3 million.
During the application process you answer questions about your weight, age, gender, and health. The application takes a few minutes and you will receive approval within minutes of completing the application.
You may come across two different levels of this Term Insurance. Simplified Issue and Fully Underwritten. What that means is your coverage level will be different. For a simplified issue, which has coverage under $1 million, you wont need a medical exam. With fully underwritten coverage over $1 million, you may need to get a medical exam.
So basically if you want coverage over $1 million, then you may need a medical exam. However, coverage under that amount simply requires you fill out a questionnaire.
Guaranteed Whole Life Insurance
Ethos also offers a whole life product that is guaranteed acceptance. This means anyone can apply when you are within the accepted age range and you will get coverage. This coverage is best for individuals with health problems, it’s like a backup form of insurance.
A whole life policy is a permanent insurance product. It doesn’t automatically cancel or expire at a certain age. As long as you make your payments, the coverage is active.
Because the insurance company will insure anyone who meets the age limits, the insurance provider is accepting more risk. So, the premiums are higher! And some insurance companies have a two year wait fine print on their guaranteed acceptance plans. (More on this later!)
Ethos offers coverage limits of $10,000 to $30,000 for this product. This plan also comes with an accidental death benefit. So if you were to pass due to an accident, your family would receive a payout. The plan also includes cash value accruals and an option for reduced paid-up insurance.
NOTE: This plan is not available in New York, but is available in all other states.
What Plans Should I Avoid?
Frankly, I would avoid both plans, or at least consult with an agent BEFORE you purchase either one. As we have touched on, there are fine print problems you need to understand before you buy either plan. There are rate increases, minimum coverage fine print, and an auto canceling clause.
- If you do not want your coverage to automatically end or increase every renewal then avoid Term Insurance.
- If you are a very healthy individual then you do not need to buy a Guaranteed Insurance plan.
- If you need a Guaranteed Issue plan, contact an agent who can give you other options. Ethos may not be the best option for you and I encourage you to shop around BEFORE you lock yourself in.
I would be happy to help, I can provide you with a list of your options in a matter of minutes. Give me a call at 888-626-0439.
Continue reading to learn why I say the fine print problems are a BIG issue with Ethos.
What Are The Fine Print Problems
Ethos has three main fine print problems. They are
- Two year wait period
- Age limit cancels term insurance
- Regular rate increases
Two Year Wait
So, let’s start with the two year wait. This is a fine print issue you see with many guaranteed life insurance policies.
A two year wait means you do not have full coverage for the first two years you have your policy. If you die due to natural causes or disease your family will NOT get any benefits. They will only receive a return of premiums paid with a small amount of interest. So your beneficiary will get 100% of the premiums + 30%.
So if you see “instant coverage” on their website or advertisement that is misleading. It’s basically a lie. You do not have instant coverage at all.
During the two years, the only way you will get the death benefits payout is if you pass due to accidental circumstances. The chance of that is less than 6% according to a CDC study in the USA. So, it’s not exactly a high probability and definitely less likely than natural death.
Causes Of Death
While accident insurance can seem attractive, the CDC provides statistics that show accidental deaths account for 5.4% of overall deaths. Most deaths are due to disease or medical conditions. Read more about the percentages of deaths and what causes them here.
The leading cause of deaths for Americans 65 and older are: Heart Disease, Cancer, and Stroke.
For those 65 and older, the percentage of deaths caused by accidents goes down to 1.9%. So the likelihood of you passing due to an accident decreases the older you get. Read CDC this PDF report to learn more about the causes of death for seniors.
Age Limit Cancels Term Insurance
Term insurance is only a temporary time-limited plan. You can get a 5, 10, 15, or 20 year term insurance. It stays valid through that term and cancels at the end of the term.
However, there is also an age limit. If you buy term insurance and reach the age of 80, not only does your coverage cancel, but you cannot renew it. So you have outlived your plan and cannot get a renewal. You would have to get a completely different insurance plan. And now that you’re 80 the premiums could be even higher.
If you want coverage that protects you for your whole life, I would suggest you consider a Whole Life plan. We at Buy Life Insurance For Burial can provide you with a quote in a matter of minutes. Give us a call at 888-626-0439.
Regular Rate Increase
Lastly, I want to touch on the regular rate increase you will face when you buy a term life insurance plan. As you get older and with each renewal your premiums will go up. So your insurance essentially gets more expensive AND it will cancel when you reach 80.
So not only do you pay for a more expensive plan, but it is very likely you will outlive the plan and be left with nothing!!!
How Much Does It Cost
Take a look at the cost of coverage with an Ethos Guaranteed acceptance plan. The two charts below include different ages and coverage levels.
| Age | Female $10,000 | Male $10,000 |
| 45-63 | $47.00 | $59.00 |
| 64-68 | $56.00 | $74.00 |
| 69-74 | $77.00 | $98.00 |
| 75-79 | $103.00 | $116.00 |
| 80-85 | $119.00 | $165.00 |
| Age | Female $20,000 | Male $20,000 |
| 45-63 | $78.00 | $105.00 |
| 64-68 | $106.00 | $138.00 |
| 69-74 | $144.00 | $180.00 |
| 75-79 | $187.00 | $126.00 |
| 80-85 | $222.00 | $308.00 |
Canceling Policies
To cancel your policy you can contact Ethos at their customer service line. Call 415-322-2037. Ethos offers a 30-day money back guarantee or “Free Look” period.
Head to the FAQs at the bottom of this article to understand what the “Free Look” period is.
Ethos Customer Service
You can contact Ethos customer service over the phone at 415-322-2037. You can also text them at 415-702-1844 or email at Support@ethoslife.com
They are available Monday through Friday 8 a.m. to 6 p.m. CST.
Ethos Customer Reviews
Ethos is not an insurance provider. So they do not carry a rating with the National Association of Insurance Commissioners (NAIC). This is a company that collects data on the complaints an insurance company receives each year.
The company’s Ethos does work with to provide insurance, however, carry ratings with the NAIC.
AAA Life carries a 0.93 ratio, slightly below the national average. Ameritas Life Corp carries a 0.51 ratio which is well below the national average.
The NAIC has calculated the national average ratio of complaints to be 1.0, so Ethos complaints are well below that average ratio. This would indicate they receive less complaints than average.
Ethos carries a 3.⅕ rating on Investopedia. The cons mentioned are limited insurance product options, no customizable riders, and limited benefits/coverage amounts. Click here to read the review.
ValuePenguin gives Ethos a 3.⅘ mentioning lack of personal customer service as a con. It also mentions Ethos is bad for competitive pricing and permanent insurance. View the report here.
How Do I Make A Claim?
To make a claim as the beneficiary or relative of the deceased you will need to notify your insurance provider of the policy holder’s death. Each provider may have a specific way they want you to contact them.
To make a claim, call Ethos customer service at 415-702-1844. An agent can walk you through the process of filing a claim.
When Are Benefits Paid?
Usually benefits are paid out in 30 days or less. Some companies even pay out benefits within 10 days once you have submitted the forms and other documents. If there are any issues with your document this could delay the process.
Make sure you provide the correct documents and confirm the documents are in an acceptable form. For example some documents may need to be certified by a lawyer.
Ethos Company Background
Ethos is not actually an insurance company. They endorse insurance plans and advertise them to customers. But the plans are underwritten by another company.
Ethos is actually a startup with the goal of making purchasing life insurance faster and more convenient. As I said they are not an insurance provider, they just advertise other companies policies. Click here to see what companies they work with.
Ethos is basically a licensed third party. They have the right to share and advertise insurance for the companies they are partnered with. They have an A rating with A. M. Best rating service. Click here to see the rating.
Ethos focuses on marketing products to young, healthy individuals who want fast and convenient coverage, Ethos uses predictive software to speed up the process. Because the company uses software to find the high risk individuals, many do not qualify for full coverage when applying.
Ethos focuses mainly on selling a Term Life Insurance product, this product is not the best option for most individuals.
Basically, Ethos is a third party, marketing and software startup that advertises mediocre insurance to individuals.
Should I Buy An Ethos Plan?
Honestly, before you buy any insurance plan I suggest contacting an agent who works with multiple companies. This way you can make sure you are getting the best deal. Shopping around can save you money and can protect you from getting the wrong plan.
So, the answer, not yet! Contact us and make sure you are getting the best coverage for the best price. It will only take us a few minutes to match you with the best plans we have. Call us at 888 626 0439.
Alternatives To Ethos
There are MANY great alternatives to Ethos. However, the company that is best for YOU is specific to you only.
I have access to insurance providers that have better coverage, no wait periods, higher benefits, and competitive rates.
To find the best alternative to Ethos, give us a call at 888 626 0439. I can give you quotes from over 15 different insurance providers in a matter of minutes.
Final Comments
When buying insurance, you definitely get what you pay for. And there are multiple ways to pay. When buying insurance you need to invest the following:
- Time
- Effort
- Money
You start by investing your time. How? By reading this article, you have invested time and effort. You now have a better understanding of Ethos and the pros and cons they offer.
The next step could be reading more, researching a different company, calling that company, and getting a quote.
Or you could call me and I can save you a lot of time and effort. Within a few minutes I can provide you with information and quotes from multiple companies. This will save you DAYS! Researching insurance is not fun and it can become overwhelming.
We at Buy Life Insurance For Burial have been doing this for years. We can answer ANY questions you have and pull up quotes for you in minutes!
I encourage you to give us a call and take a few minutes to get a quote. Within a few minutes you can have the answers to important insurance questions and a few quotes to consider.
Go to buylifeinsuranceforburial.com –you’ll see all sorts of different information on how I can help you. You can submit a form to get more information.
I would be more than happy to talk to you, give you information on how things work under a no-obligation, no-pressure approach. If you like what I say, great. If not, that’s fine too. My job is just to give you the facts, and you decide for yourself if it’s a good deal for you and your family.
Why Work With Us
Captive agents work with one company. They do not have flexibility when providing you with quotes and options, they can only quote one company’s rates. They usually recommend plans that force you to deal with plans that have fine print issues. These agents simply CANNOT provide you with ALL your options.
We at Buy Life Insurance For Burial have access to over 15 different carriers. We pay attention to the fine print, coverage limit, premium rates, and your specific needs. We do the research and shopping around for you. We can answer any questions you have and make sure you get a plan that will actually cover your needs.
To contact us or get a quote, click the Get A Quote Button or call 888 626 0439 and one of our friendly life insurance specialists would be happy to provide you with answers and a free quote in less than five minutes.
FAQs
What Is The Free Look Period?
This is a time frame where you can buy your insurance and hold your plan. During this period if you decide you don’t want the coverage you can cancel the plan and get your money back. Usually this period is between 10 to 30 days. Each state may also have different laws and guidelines on their free look periods.
If you decide you do not want the policy WITHIN the free look period you can cancel the policy and get a refund of any premiums paid.
What Is Guaranteed Acceptance/Guaranteed Issue?
Guaranteed Acceptance is a specific type of plan where anyone is guaranteed coverage as long as you fall into the accepted age limit.
No medical history questions are asked on the application and as soon as your application you will be accepted. Not every provider offers guaranteed acceptance. Guaranteed Issue is a good plan for any individual who has serious health issues or may be rejected by other providers.
What Is A Two Year Waiting Period?
This is a common fine print term. This means when you first purchase the plan, you do not have full coverage for two years. You wait two years to have your complete policy coverage. You will not actually be covered for the first two years of owning the policy.
This clause is misunderstood or overlooked by MANY people, and unfortunately I know of cases where people passed within the 24 month wait period. Do not assume you would not pass within two years. Insurance companies calculate this wait time for a reason.
Unfortunately we cannot know for certain when we will pass. Buying a policy with this clause is a huge risk for ANY individual, especially for those over 50.
What Is The Best Life Insurance Company?
This is not a one size fits all answer. The best life insurance company is different for each individual. A better question is: What is the best insurance company for me? And to answer that, I need to get to know you a bit better.
If you want the answer to that question, give me a call at 888 626 0439 and within a few minutes I can have a few of your options ready!
The best life insurance company will have very good customer reviews, provide flexible coverage amounts, have a convenient and fast application process, and provide competitive premiums.
I do have a video review of the best life insurance companies for seniors 65 and older. Take a look at this 30 minute video to learn more. Best Life Insurance For Seniors 65 And Older [Rates & Carriers Revealed]
References:
- Take a look at this detailed review from NerdWallet on ethos life insurance plans and their pros and cons. Click the link below. Ethos Life Insurance Review 2022: Pros and Cons – NerdWallet
- Go over information regarding Ethos fine print problems and the Clauses that you will have to deal with if you purchase a plan for Ethos. Click the link below. The Truth About Ethos Burial Insurance [2022 Review]
- Take a look at some of the pros that ethos offers when you purchase a plan with them. However, note the cons that are involved with each of their products. Click the link below. Ethos Life Insurance Review: Fast Approval with Few Riders – ValuePenguin
- Take a look at this insurance review of Ethos. Click the link below. Ethos Final Expense Insurance Review
- Take a look at a detailed review of ethos life insurance in the products they offer. Click the link below .Ethos Life Insurance [2022 Review]
- Take a look at a final expense coverage Ethos Insurance review. Click the link below. 2022 Ethos final expense insurance review
- Find the answer to this question, click the link below. Is Final Insurance Right For You, Should Your Purchase A Policy Today?
- Take a look at Ethos’ website. Click the link below. Ethos Life
- Take a look at this 20 minute video which goes over the worst burial insurance policies you could choose. Click the link below to watch the video. BEWARE These Burial Insurance Companies!
- Take a look at this video to review the worst burial insurance policies. Click the link below to watch the video. Avoid These 4 WORST Burial Insurance Policies! [2021]
- Take a look at a detailed review from Investopedia on Ethos products. Click the link below. Ethos Life Review
- Take a look at some information on Ethos’ website about their products and offerings. Click the link below. Our Life Insurance Carriers | Ethos Life
- Take a look at a rating of one of the company’s Ethos has partnered with to provide insurance policies. Click the link below. AAA Life Insurance Company – Company Profile – Best’s Credit Rating Center