This is a sponsored post in partnership with Ethos, a life insurance provider.
You guys already know I’m a huge proponent for proper insurance coverage. Besides health insurance, there are several other insurance policies I have in place. When I was 16, I started paying for auto insurance on my first car. I have rental insurance on the house I rent. Just a year ago, I decided to get disability insurance. I even have pet insurance for my dogs.
It only made sense to get life insurance as well. I put life insurance on the back burner for a while because I wasn’t sure if I needed it. I don’t plan on having kids and I don’t currently own a house. When I thought about it further, I realized I plan on buying a house one day and I may need to financially take care of loved ones in the future. And since I lock in the lowest rate the younger I sign up, I figured now’s the time.
Having proper insurance coverage is smart financial planning in case the unpredictable happens.
Getting life insurance can be overwhelming. I remember asking about life insurance to a local insurance agent and becoming instantly overwhelmed by the whole process. Not to mention that the insurance agent I talked to is sales-incentivized meaning they make commission, so the advice may not be genuine. Is signing up for life insurance really this hard?
Fortunately there’s this thing called the internet and I did some research on life insurance. Everything I read made me think the process for applying was difficult and expensive. So when Ethos reached out to me to see if I wanted to write a post reviewing their life insurance, I looked into their life insurance program further.
Benefits of life insurance
Knowing your family will be taken care if anything happens to you is the biggest benefit of life insurance. My partner and I plan on buying a house in the near future and having life insurance gives me peace of mind that he’ll be taken care of in case I pass.
What life insurance can cover
- Replace your salary for years
- Pay off home mortgage or cover portion of your rent
- Pay child’s college education
- Cover funeral costs
- Help pay for care for aging parents
- Pay off any outstanding debt like credit card debt or student loans
- Small business owners by providing extra aid to business
The cost of life insurance
Life insurance is probably a lot more affordable than you think.
The cost of Ethos life insurance depends on many things, including 1) age 2) amount of coverage and 3) length of term.
With Ethos, $1 million in coverage can start for as low as $1 a day.
How to save on life insurance
The easiest way to save on life insurance is by getting it now. The longer you wait to get life insurance, the more it costs.
Here’s a quick example.
Jacob is a 35 year old who may expect to pay $54/month for a $500k policy with a 30 year term if he bought today. If he waits just one more year to purchase life insurance, his premium would go up to $58/month. That’s an extra $1,440 more over the term and an extra year his family is not protected. If Jacob waited another 5 years, he’d spend $10,080 more on life insurance than if he purchased a life insurance policy now.
Who needs life insurance?
- Stay at home parents (if their spouse wouldn’t be able to cover the cost of childcare and other domestic roles)
- Equal income earners (couples who split rent and expenses)
- Someone with co-signed debt
- Retired people who want to leave money to heirs
- People who would like to leave a large sum of money to a charity
- Business partners who want their business to remain open
- Business owners who have an essential employee whose death could impact the business
- Retirees who want to spend the money they’ve earned and live money to grandkids
I plan on financially taking care of my mom so if anything happened to me, I want to make sure there’s money for her to retire and live comfortably.
How much coverage do you need?
This answer is different for everyone.
How much life insurance you will need depends on 1) annual income 2) expenses 3) additional costs you don’t want your surviving family members to pay.
To make things easier, you can calculate your final expenses like burial and funeral costs. You may also want to tally in any outstanding bills or debt, the cost of maintaining your household, which can be things like rent or mortgage, food, medical needs, etc.
If you need extra help, Ethos has a coverage calculator that makes it easy to determine the coverage amount for your particular situation.
For me personally, I chose a $400,000 policy over the course of 20 years. This money would cover any mortgage expenses and money if a parent needed care.
Your policy coverage will be completely unique to you and your situation.
Why sign up for Ethos?
What I love about Ethos is the opportunity to choose what policy fits me best – which is not the experience I received when I talked to an insurance agent in my hometown.
Thirty-eight percent of Americans think life insurance isn’t affordable and 26% even think it’s a scam. I get it because I’ve seen insurance agents try to oversell me on a policy I didn’t even need. Insurance agents are oftentimes sales-incentivized and it can be an invasive application process. Getting life insurance is one of the best decisions you can make for your family, yet most people avoid getting it because of the process of attaining a policy.
Ethos agents will not unnecessarily upset you, meaning they ensure your policy only fits your needs. They have a track record of ensuring their customers only pay what they need to for the coverage essential to their loved ones – over half of their customers have actually been told to purchase a smaller policy based on their unique circumstances.
This means they put people before profit, completely eliminating the hard-sell we often see with insurance agents. Instead, you get what’s right for your family.
How do I get started with Ethos?
I applied for life insurance with Ethos and the application took less than 10 minutes. The application is 100% free and does not impact your credit score at all.
Getting a quote is simple. You answer a few questions about yourself and press continue.
Now you can explore your options. You can choose the coverage amount you want by increments of $25,000 between $100,000 and $1,000,000. You can choose a term length of 10, 15, 20, or 30 years. Then you can click get my real rate. You’ll continue to answer a few simple questions about yourself.
Common questions about life insurance
What if I already have coverage through work?
My partner is getting life insurance even though he has life insurance through his work. We found out his current life insurance policy only pays out $20,000 – which is only enough to cover burial and funeral expenses. Experts recommend a policy worth 10X your salary.
On top of employer-provided coverage not being enough (most of the time), many people tend to lose their insurance coverage when they leave that employer to change jobs, are laid off, or when they retire.
Do I need term life or permanent life insurance?
This is a common question in the personal finance world that is often controversial. Typically, you probably only need a term life policy.
Term life insurance is typically the simple and affordable option. Term life provides coverage for a set period of time, usually 10-30 years.
Term Life insurance may be for you if:
- You want coverage that replaces your income over a fixed period of time
- You want affordable coverage for a set period of time
Permanent life insurance providers coverage your entire life. Personal finance experts typically do not recommend permanent life insurance because it’s much more expensive. Some may say permanent life insurance can be a good investment but that may not often be the case. Your money is better off investing into a 401(k) or IRA, in my personal opinion. You can learn more here about the differences between term life and permanent life insurance.
I have peace of mind now that I decided to sign up for life insurance. I’m covered with insurance in all other areas of my life so it feels great to be prepared in case anything ever happened to me, my loved ones would be protected.
Signing up with Ethos is a simple and easy process. If you want to learn more about Ethos and get a free quote, you can learn more here.
I can live my life without any worries now that I have a financial plan in place.
Do you have life insurance? What’s your experience been like?