Final Expense Insurance

2022 Ethos final expense insurance review

Are you thinking of buying final expense insurance from Ethos?

Read this review first because appearances can be deceiving (and they are with Ethos).

Here is a taste of the deception we’re referring to:

Every applicant has a two-year waiting period before being insured. Furthermore, their website is egregiously misleading (and we’ll prove it).

This article will reveal how their coverage works, explain some obvious red flags, and teach you how to find better coverage from honest companies.

Topics covered in this article

 

How does Ethos final expense insurance work?

AAA Life Insurance Company underwrites ethos final expense coverage. It’s a guaranteed acceptance whole life insurance plan with no health questions, so it has a two-year waiting period. They will only refund 130% of the premiums for non-accidental death during the waiting period.

An ethos burial insurance plan will pay out the full death benefit if A) you live more than two years or B) you die from an accident (even during the first two years).

Since it’s a whole life policy, the policy details are straightforward. According to Ethos, here are all the policy features:

  1. Premiums won’t increase
  2. Coverage won’t decrease
  3. Coverage will never expire
  4. Guaranteed approval
  5. Ages 66-85 are eligible to apply
  6. Available everywhere but New York
  7. Two-year waiting period for non-accidental death
  8. 130% refund of premiums in the first 24 months
  9. Builds cash value

They allow people to apply on their website or by calling them.


How does Ethos final expense guaranteed acceptance whole life insurance compare to other providers?

Out of sheer principle, we encourage you not to give your money to such a dishonest company (we explain how they are dishonest below). But if you need a guaranteed acceptance policy, Ethos sells a very inexpensive product. They are just selling AAA’s burial insurance, which is honestly the best guaranteed issue life insurance policy on the market.


 

A big red flag you cannot ignore

We analyzed the following pages from the Ethos website:

  • https://www.ethoslife.com/life/whole-life-policies/
  • https://www.ethoslife.com/life-insurance/is-final-expense-insurance-right-for-you/

There are many apparent discrepancies.

The image below is a screenshot taken from their website that highlights their whole life insurance.

screenshot from ethos life insurance website

Please note the section circled in red where it says, “Coverage starts the moment you make your first payment.”

As noted on multiple pages of their website, Ethos final expense insurance is a guaranteed acceptance whole life plan.

The fine print at the bottom of their website says very clearly:

“This Guaranteed Issue Whole Life policy is referred to as graded benefit whole life insurance. If you suffer a non-accidental death within the first two years of coverage, your beneficiaries will get 100% of the level monthly premiums you paid, plus 30%.”

So they own up to the fact that there is a 24-month waiting period for natural deaths.

But here’s the big problem.

Their page is marketing guaranteed issue whole life insurance. On that type of page, when you print the words “Instant Coverage,” every consumer will assume they are insured right away and not subjected to a two-year waiting period.

It’s unbelievably deceiving.

At Choice Mutual, we have personally spoken to clients who dealt with Ethos. They were all under the impression it’s a life policy with no waiting period. And who can blame them, given their website?

Let’s be clear on one important issue.

All guaranteed issue life insurance plans (from every company) have a minimum of a two-year waiting period for non-accidental death. There are no exceptions to that rule.

Ethos likely chose those words on purpose. In their mind, they probably rationalized their misleading statements by claiming something along the lines of: “the accidental death coverage in the first two years is still coverage, and thus coverage beings when you make your first payment.”

But when you know how consumers will interpret something, you should act with honor and change your messaging so as not to confuse them.

They chose the dishonorable route and shame on them.

 

How much does Ethos burial insurance cost?

They make it harder to get a final expense insurance quote than virtually every other company.

First, their “quoting tool” starts by giving you a range of prices, but it does not mention a coverage amount. You’re left wondering how much coverage they just quoted you.

For example, we typed in a 66-year-old female who lives in Nevada and doesn’t smoke. Those parameters told us the estimated monthly rate was from $56-$129. Again, there is no mention of how much coverage $56-$129 would buy you.

What kind of insurance company quotes a price without telling you how much coverage you’re getting?

But it gets better.

If you click the “Get My Real Rate” button, it starts to ask you for more information. One of the pieces of personal information they ask for is your Social Security number. You must also agree to their HIPPA consent which allows them to access your medical records.

That is a big red flag.

You shouldn’t have to provide your SSN or grant a HIPPA release to get a quote from an insurance company.

That is preposterous.

Yes, you need to provide your SSN to an insurance company when you apply but not when you just need a quote.

Let’s recap what we learned about the cost of Ethos final expense insurance:

  • They provide a worthless price range estimate because there is no mention of how much coverage they are quoting.
  • No sample prices appear within their articles.
  • The quoting tool asks for your SSN for you to get an actual quote.

That all said, we can reasonably estimate what their prices are for their whole life insurance.

Remember, they are merely selling AAA’s guaranteed acceptance coverage. We have those prices, and they are in the table below. These are likely the same prices (or very close) that Ethos would offer if you called them.

Age BracketFemale $10,000
In Coverage
Male $10,000
In Coverage
Female $20,000
In Coverage
Male $20,000
In Coverage
45-63$47.00$59.00$78.00$105.00
64-68$56.00$74.00$106.00$138.00
69-74$77.00$98.00$144.00$180.00
75-79$103.00$116.00$187.00$126.00
80-85$119.00$165.00$222.00$308.00

 

Better options to consider

First, most people don’t need a guaranteed acceptance life insurance plan. Most people can qualify for a senior final expense policy that asks questions about health.

That will lead to a plan that has no waiting period. In addition, the cost will likely be lower compared to a guaranteed issue policy.

That said, if you want or need a guaranteed acceptance policy, don’t give your money to Ethos. Ethos doesn’t deserve it. Call AAA directly at (888) 523-1863.

But if you want to get an immediate benefit policy, call Choice Mutual. We’re an independent agency that represents over 15 highly rated burial insurance companies.

We’ll compare all the top insurance companies in your state to find which one (if any) will approve you for a no waiting period policy at the lowest price.

Check out what other happy customers have said about working with us.

You can reach us at 1-800-644-2926.

 

Ethos company background

Ethos is an insurance technology startup founded on the promise to make buying life insurance online faster and easier. They claim to leverage data to issue coverage so consumers don’t have to take a medical exam.

Ethos is not an insurer. They are an agency that sells insurance for various insurance companies. A complete list of their carrier partners can be found on their website.

Below is their contact information:

  • Corporate headquarters: 75 Hawthorne St, Suite 2000 San Francisco, CA 94105
  • Customer service phone number: (415) 322-2037
  • Website: https://www.ethoslife.com/