Should Life Insurance Agents Write Business With Ethos Life Insurance?

This is a question I’ve thought deeply about based on my own experiences and those of other agents I’ve coached and worked alongside.

Today, I’m sharing my firsthand perspective on what Ethos does, how their business model operates, their offer to life insurance agents and clients, and the challenges I’ve faced—and continue to see others face—when working with them.

Prince Donnell - Should Life Insurance Agents write business with Ethos Life Insurance?

What Ethos Life Does:

Ethos Life operates as a tech platform, not an insurance carrier. Their model connects life insurance agents with multiple carriers, like Banner Life for term policies, John Hancock, Ameritas (for IULs), and TruStage for whole life and final expense. The idea is to simplify the process of submitting applications by acting as a middleman between agents and carriers. Instead of logging into each carrier’s system individually, you can use the Ethos platform as a centralized hub to submit applications to all the carriers they’ve partnered with.

It sounds convenient, right?

When a client is approved for coverage, the commission doesn’t come directly from the insurance carrier. Instead, it’s routed to Ethos, which then pays you based on your contract. This setup creates a layer of complexity that I’ll dive into shortly because it’s where some major pain points arise.

Ethos markets itself as a solution for agents who want faster application processes and quicker commission payouts. For example, their “7-minute application” process was a major selling point for me when I first joined. The idea is that within seven minutes of submitting an application, you’ll get an instant decision about 60-70% of the time, based on their underwriting algorithm and access to prescription records.

Additionally, Ethos includes bonuses for clients, such as free wills and trusts. That was one of the things I really liked when I started. As someone who works with everyday people—many of whom are African American and often lack access to financial planning tools—offering a free will and trust felt like a meaningful way to make an impact.

The Reality: Challenges I’ve Experienced with Ethos Life

While Ethos has some appealing features, my personal experience as an agent, and the experiences of agents I’ve onboarded, have exposed significant flaws.

Here’s a breakdown of the major issues I’ve encountered.

1. The TrueStage Product Left My Agents in Debt

One of the biggest issues came from the TrueStage product. When it was first introduced, it was a third-party product, meaning agents couldn’t write applications directly. Instead, if a client got declined for a term policy, we had to send them a referral link to fill out the TrueStage application themselves. This created a terrible client experience.

Even worse, the product allowed clients to pay with debit or credit cards, which seemed convenient at first. However, Ethos later discovered that over 50% of these payments didn’t process due to insufficient funds. By the time they realized this—sometimes 60 to 90 days later—agents were already paid commissions on those policies. Ethos then issued massive chargebacks, leaving my agents thousands of dollars in debt.

Not only did this damage my agents’ finances, but it also eroded trust in Ethos. To this day, I haven’t seen Ethos take accountability for this issue.

2. No Clear Expectations Around Persistency

When I first joined Ethos, there were no clear guidelines around persistency—the percentage of policies that stay in force. Later, they introduced a persistency requirement of 85-90%, but it was too late for many agents who were blindsided by sudden changes to the goalposts. Persistency requirements make sense to a degree, but they also discourage agents from helping clients who might struggle to keep up with premium payments, even if those clients genuinely need coverage.

As agents, we’ve all experienced situations where clients miss payments due to financial hardship. I come from the inner city of Philadelphia, where helping everyday people—people like my mother—get life insurance coverage is my mission. Persistency requirements make it harder to serve those clients without risking our contracts.

3. Policies Flagged for Underwriting Become a Black Hole

If a policy gets flagged for underwriting, it can be an absolute nightmare. Ethos claims their underwriting process takes five to seven days, but in my experience, cases have been stuck for 14 to 21 days or longer. Worse, their process requires clients to fill out additional forms sent via email, and those forms often never arrive. This leaves agents scrambling to contact customer service, which is another weak point I’ll address below.

4. Next-Day Commission? Not Always

Ethos advertises next-day commission payouts for IULs and other products, but this promise isn’t always delivered. I’ve had numerous agents report delays in receiving their commissions, even after submitting all the required documentation. Having to chase down commissions is not only frustrating but also undermines the trust agents place in the platform.

5. Tech Issues Around Chargebacks

Ethos’ tech issues around chargebacks have caused significant problems for me and my agents. There were multiple instances where chargebacks appeared months after the fact due to lapses in Ethos’ tracking system. These delays made it nearly impossible for agents to save the policies or recover from the financial impact.

6. Poor Customer Service

Ethos’ customer service is another major pain point. Whether it’s resolving tech issues, following up on underwriting, or clarifying commission payouts, getting a timely response from their team has been a constant struggle. As agents, our reputation depends on delivering seamless experiences for our clients. When Ethos fails to provide adequate support, it reflects poorly on us.

7. Underwriting Guidelines Don’t Match Decisions

I’ve personally experienced situations where clients met all of Ethos’ underwriting guidelines but were still declined. These same clients were later approved by other carriers, sometimes with preferred ratings. This inconsistency wastes time and damages our credibility with clients.

8. Beneficiary Information Doesn’t Always Transfer

One of the most concerning issues I’ve seen is with beneficiary information on IUL policies. When Ethos sends the policy to the carrier (e.g., Ameritas), the beneficiary information doesn’t always transfer correctly. This can create a nightmare scenario if a client passes away and their intended beneficiaries are left out.

My Honest Recommendation:

As of today, based on my experience and the feedback I’ve gathered from hundreds of agents, I cannot recommend Ethos Life as a platform for building your insurance business. While they have a vision for faster processes and innovative tech, the execution falls short in critical areas like agent support, payment transparency, and operational reliability.

There are other platforms and carriers with established reputations for treating agents fairly, paying on time, and providing consistent support. Even if those platforms are slower or less tech-driven, they offer the reliability and trust that are essential for building a sustainable insurance business.

A Call to Action for the Industry:

I believe we, as life insurance agents, need to hold carriers and platforms accountable. We’re the ones on the ground, spending money on leads, doing the work, and building relationships with clients. Our contributions deserve respect, transparency, and fairness.

That’s why I’ve launched InsuranceAgentNews.com—a platform dedicated to keeping agents informed about the latest developments in the industry. Whether it’s reviewing carriers like Ethos, providing updates on IMOs, or sharing best practices for lead generation, my goal is to empower agents with the knowledge and tools they need to succeed.

If you found this review helpful, check out InsuranceAgentNews.com for more insights, reviews, and strategies to grow your business. Together, we can shape the future of this industry for the better.

Should Life Insurance Agents Write Business With Ethos Life Insurance?

About Prince Donnell: Prince Donnell is a 30-year-old entrepreneur specializing in lead generation marketing strategies for financial service products. Over the past 24 months, he has generated more than 250,000 life insurance and accounting leads, helping professionals in these industries grow exponentially. Donnell empowers life insurance agents and accountants to SCkALE their businesses through proven marketing and content strategies, making business growth accessible and achievable for service-based entrepreneurs.