Life insurance fintech startup Ethos raises $60 million

Source: Ethos

Ethos, the company making simple, ethical life insurance, today announced it raised a $60 million Series C financing led by GV (formerly Google Ventures).

This financing follows major revenue and customer growth, and supports Ethos’ mission to make life insurance coverage accessible for millions of families in the U.S. In addition to GV, Goldman Sachs is a new participant alongside existing investors Sequoia Capital and Accel, bringing the total funding to-date to more than $100 million.

The traditional life insurance application model hasn’t meaningfully evolved in 150 years. The historical application process is long, complex, and invasive - often requiring medical exams and weeks of paperwork. The ubiquitous practice of employing commissioned insurance agents can mean agents are incentivized to make a sale, not to find the policy that is right for the individual. Incentives are fundamentally misaligned. These outdated practices are one reason a massive coverage gap exists in the U.S. Seventy percent of Americans consider life insurance a necessity, yet 41 percent have no coverage at all.

Ethos was founded on the radical idea that everyone deserves access to ethically designed, easy-to-understand term life insurance policies tailored to fit people’s lives. Ethos is a pioneer in using predictive analytics and sophisticated data technologies to eliminate the traditional barriers keeping people from getting coverage. The result is an application process that takes minutes instead of weeks, no medical exams for most applicants, no commissioned agents, and a life insurance company that prioritizes people over profit.

“Since our original investment in Ethos last year, we’ve been consistently impressed by the company’s commitment to growth, customer traction, and execution to date,” said Tyson Clark, General Partner at GV. “With the company’s product differentiation and singular approach to modern life insurance, Ethos is well-positioned to disrupt a $100+ billion industry.”

This latest round of financing comes after significant company growth. Ethos has quadrupled revenue since October 2018 and announced several integral leadership hires, including Head of Finance David Zhang and VP of Insurance Phil Murphy. The company is also driving increased customer acquisition, insuring thousands of new families. The Series C funding will fuel continued momentum, supporting product refinement, technical team hires, and ultimately, the ability to protect more families.

“Getting life insurance is one of the most selfless financial choices someone can make. You shouldn’t have to endure what’s essentially a medical and financial strip search in order to protect your family,” said Peter Colis, Ethos CEO and Co-Founder. "What makes Ethos different from other providers is our core values are aligned with the expectations of American families: life insurance should be easy and ethical. We aren't motivated by capitalizing on individuals. Instead, we make choices like right-sizing policies for customers, so they have the best coverage for their families without ever paying more than they should.”

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