In 2025, a record number of Americans are canceling their traditional life insurance policies, drawn to a new wave of digital apps promising faster, cheaper coverage. According to a July 2025 report from Saving Advice, policy cancellations have surged across term and whole life products, driven by economic pressures and distrust in legacy insurers. Enter Ethos, a fintech app rated by Business Insider as the best for guaranteed coverage, offering no-medical-exam policies with same-day approval. Posts on X highlight its appeal, with users praising instant quotes and premiums as low as $13 monthly for $250,000 in term coverage.
Economic uncertainty plays a big role. With inflation squeezing budgets, families are cutting premiums that can reach hundreds monthly, especially for older policyholders. The 2024 Insurance Barometer Study by LIMRA notes 42% of adults 102 million Americans feel underinsured, yet many overestimate life insurance costs by threefold, pushing them toward apps like Ethos that simplify the process. Younger generations, particularly Gen Z and millennials, are leading the shift, with 50% of millennials intending to buy coverage in 2025, per LIMRA.
Ethos and similar apps leverage AI to streamline underwriting, offering:
- Instant Approvals: Policies issued in minutes, no medical exams needed.
- Affordable Rates: Term coverage starting at $10–$20 monthly for young, healthy applicants.
- Flexibility: Options to adjust or cancel without hefty fees, unlike traditional policies.
However, experts warn of risks. Canceling old policies can lead to higher premiums later due to age or health changes, per NerdWallet. Troy Brodie of Western & Southern Financial Group told CNBC, “Life insurance isn’t just for later it’s about financial security now.” As Americans embrace these apps, the trade-off between convenience and long-term protection remains a critical debate.
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Marcus Hale is a finance professional turned content creator who specializes in personal finance, stock market analysis, crypto trends, and smart investing strategies. Known for simplifying complex financial concepts, Marcus helps readers make confident money decisions. Whether you’re budgeting, investing, or tracking global markets, Marcus delivers timely advice with clarity and authority.