There are a nearly endless number of life insurance companies in the market, many of which offer policies to men and women of all age groups.
But, what about life insurance for moms?
While mothers can buy their life insurance from any reputable company just like anyone else, it might be worth looking into companies that offer policies created specifically for moms.
Enter newer life insurance firm Ethos, a company that offers life insurance for moms and dads with the goal of protecting families against the financial consequences of the death of a parent.
This company offers policies you can apply for online, and many healthy people will receive instant approval without a drawn-out underwriting process.
If you’re angling to protect your family from financial hardship resulting from your death, you need to make sure you have an adequate amount of life insurance coverage today.
Is this the ideal company for your needs? Read my Ethos review below to find out.
What makes Ethos different?
We already mentioned how there are oodles of life insurance companies offering policies in the U.S. market.
Some companies operate out of brick-and-mortar offices and have dedicated agents while others market their products online only.
Others offer both traditional offices and online marketplaces so customers can choose where and how to buy their policies.
Ethos is a life insurance company that operates solely online. They offer quality life insurance policies in 49 states with the exception of New York. On the Ethos website, the company suggests that this is a much better way to market life insurance.
“Almost all life insurance is sold through commission agents,” says Ethos CEO Peter Colis. “An agent’s time is money, so they focus on selling expensive policies to wealthy people. Where does that leave the rest of our families?”
Ethos believes that your family comes first, which is why they offer low-cost term policies with rates as low as $1 per day.
“We put you above our profits,” Ethos's website promises. “No fees. No upselling. No shenanigans.”
By offering inexpensive term life insurance policies, Ethos says they are offering the most straightforward coverage money can buy.
If you pass away while you are covered by an Ethos policy, your family will receive your benefit with “no fancy investment features designed to get your money” like you may uncover with a whole life insurance policy.
How can you qualify for Ethos life insurance?
Before you apply for an Ethos policy, you can get an idea of how much your policy might cost based on your age, whether you smoke, and your overall health.
Simply enter basic details, and you can get a general idea of how much you’ll pay each month in life insurance premiums. Since this flavor of life insurance for moms is for a specific term, the plans may be more affordable than you think.
As you can see, a 40-year-old non-smoker in excellent health may be able to qualify for a term life insurance policy worth $373,000 in coverage for only $35 per month.
Policies with greater payouts cost more obviously, which is why you’ll want to decide how much life insurance you actually need before you apply.
Ethos also has a “Name Your Price” feature, which intends to show you how much life insurance you can buy based on the monthly payment you know you can afford.
If you know you only have $10 to spare at the end of each month, for example, you can enter that amount. In this case, Ethos says a 40-year-old non-smoker in great health could get $34,000 in life insurance coverage for $9 per month.
The best part about buying life insurance through Ethos is what happens after your initial research phase.
For example, Ethos says that you can actually apply for a life insurance policy in less than 10 minutes.
You can complete the process entirely online, and many healthy people qualify for instant approval.
If you do qualify for instant coverage, you won’t have to deal with medical exams or blood tests. You can begin paying your premiums and move on with your life.
If you don’t qualify for instant approval, you’ll have to take a few basic steps to get your policy going.
You may need a medical exam or blood test in some cases, which Ethos will help you to set up. Once you have proven that you are in good or decent health via a medical exam and blood tests, your policy period will begin.
On the flip side, Ethos also claims that most of their payouts are delivered to families within ten days.
This expedited delivery is referred to as “white glove service” on their website, and it is intended to help families recover financially after a death without a lengthy waiting period.
Many life insurance companies take months to pay on policies upon death, so this is a big difference that should be noted.
Benefits of Ethos life insurance for moms
- Sign up online and from the comfort of your home
- Get approval in 10 minutes or less
- Receive instant approval if you’re in excellent health, and skip the medical exam and blood test
- Ethos policies are guaranteed by Assurity, a life insurance firm that has been in business for 127 years and is rated A- by A.M. Best
- $1 per day in premiums can qualify you for up to $1 million in life insurance coverage
How to qualify for an Ethos life insurance policy
To qualify for a life insurance policy with Ethos, you have to meet a few basic requirements. For starters, you have to live in any state other than New York.
Other requirements include:
- You must be ages 18-75 to apply for life insurance with Ethos
- You must be a U.S. citizen or green card holder who has lived in the United States for at least 24 months
While moms with excellent health may receive instant approval for their policies, not everyone will qualify.
Ethos says that their policies are individually underwritten and priced on many factors including medical history, health, age, and gender. If you have moderate health issues, you may qualify for coverage with Ethos regardless.
However, some people with chronic or life-threatening health issues will inevitably be denied coverage.
Do you really need life insurance?
If you have children, a partner, or parents that depend on you, you absolutely need life insurance to protect them financially in the event of your death. Even if you don’t have kids or dependents yet, you may prefer to buy life insurance to pay for your final expenses.
One of the main benefits of Ethos is that they sell and recommend the most affordable life insurance coverage money can buy — term life insurance.
Term life insurance is offered for a term of your choosing, usually 10 – 30 years. If you pass during that period, your beneficiaries will receive a cash payment you agree upon upfront.
If you buy a thirty-year term policy for $500,000 and you pass away in a few years, for example, your beneficiaries would receive $500,000 upon your death regardless of how much you paid into your policy. And remember, death benefits are not taxed under normal circumstances, meaning they’ll receive all the cash they qualify for.
If you think your family will be fine financially if you died, you might want to think again. Consider how much money you earn at your job and how your family might miss your income or struggle without it.
Also, consider the costs of college and future expenses your dependents might need to cover as they age.
And, what about debt? Many people buy life insurance to make sure their mortgage, car loan, and other debts are paid off in the worst-case scenario. Without life insurance, you could leave your family drowning in debt and other bills without your income to help.
Another reason for parents to buy life insurance is for peace of mind. It’s possible your family would rebound quickly and be able to cover bills if you passed away, but you may not want to spend your life wondering “what if?” By purchasing term life insurance coverage now, you can forget about what could happen and rest assured your family would be taken care of.
How much life insurance do you need?
While there is no hard and fast rule that says how much life insurance you need to buy, many experts suggest buying 5-10 times your annual income in term coverage.
However, others say that’s not enough, and that you should buy enough coverage to replace the entire income, you will earn during the full length of your time in the workforce.
At the end of the day, only you can decide how much term life insurance is reasonable for your needs. Some factors to consider include:
- Your current annual earnings
- Your projected earnings after pay raises over the next five, ten, and twenty years
- How many dependents you have
- Your debts, including mortgage debt, car loans, credit cards, and other bills
- Whether you want to help pay for college
- How much you can afford to pay for life insurance every month
- Your final expenses
- Whether you want to leave a legacy or inheritance
Once you decide you’re ready to buy life insurance online, the best thing to do is to fill out your basic information with Ethos to see how much coverage you can qualify for.
It’s possible that term coverage costs less than you think, which could mean you could buy more coverage than you realize.
How to afford life insurance
It’s probably pretty obvious by now that you need life insurance, but that doesn’t mean you should buy coverage at any cost. Ideally, you’ll want to buy the right amount of coverage without jeopardizing your other financial goals.
Steps you can take to make sure your life insurance is affordable include:
- Choose the right amount of coverage. While you may be inclined to buy all the term life insurance money can buy, bigger policies are more expensive. Figure out how much money you want your family to receive to cover bills and replace your income in the event of your death, then buy that amount in coverage. There’s no sense in overpaying for coverage you don’t need.
- Consider what you could give up. Term life insurance is so inexpensive that almost anyone can afford it, but that doesn’t mean everyone has extra cash at the end of the month. Still, you should be able to fit term coverage in your budget, particularly when policies can cost as little as $10 per month. Look for expenses you can cut out to afford it, such as a weekly lunch out or your monthly trip to the nail salon.
- Focus on the term. How long you need your life insurance to last can depend on an array of factors such as how long you have to retirement and how long you have until your children graduate college. Remember that you don’t have to buy a thirty-year policy, and that a less expensive (and shorter) policy may be fine depending on your situation.
- Shop around. If you want to make sure you’re not overpaying for life insurance, you should also shop around. Consider getting a quote from Ethos and a few other online life insurance companies to make sure you’re getting the most coverage money can buy for the lowest monthly price.
Ethos Review: The bottom line
If you don’t have life insurance already, the time to start shopping is now. It’s easy to put this purchase off, but there are plenty of reasons you shouldn’t delay any longer.
For example, waiting to purchase coverage means that premiums will get higher as you age. If you wind up being diagnosed with a chronic or life-threatening disease, on the other hand, you may no longer be able to buy coverage.
If you know you need life insurance, waiting will only work against you. Buy coverage from Ethos or another company, but make sure you buy life insurance sooner rather than later — and before it’s too late.
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Holly Johnson is a financial expert, award-winning writer, and Indiana mother of two who is obsessed with frugality, budgeting and travel. Her personal finance articles have been published in the U. S. News, Wall Street Journal, Fox Business, and Life Hacker. Holly is founder of of the family finance resource, ClubThrifty.com, and is the co-author of Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love. Learn more about Holly here.