Ethos & North American Launch No-Exam IUL, Blurring Lines in Insurance

AUSTIN, TX & DES MOINES, IA – January 07, 2026 – In a move that signals a significant acceleration of the life insurance industry's digital transformation, insurtech leader Ethos and legacy carrier North American Company for Life and Health Insurance® today announced a landmark partnership. The collaboration introduces a proprietary Accumulation Indexed Universal Life (IUL) product to Ethos' digital platform, making a sophisticated wealth-building tool accessible with unprecedented speed and simplicity.

This new offering allows eligible consumers to apply for and secure up to $2 million in life insurance coverage, potentially in minutes, through an entirely digital process that sidesteps the traditional medical exam. The partnership marries the technological agility of a Silicon Valley disruptor with the financial strength and product depth of a 140-year-old insurance institution, aiming to redefine how Americans access and utilize complex financial instruments.

A New Era of Accessibility for Complex Finance

The core innovation of the Ethos and North American Accumulation IUL lies in its delivery. For decades, purchasing products like IULs—which combine a death benefit with a cash value component that can grow based on the performance of a stock market index—has been a lengthy, paper-intensive process often requiring weeks of underwriting and mandatory medical exams.

By integrating this product into its technology platform, Ethos promises an "instant-decision" for qualified applicants based on a few health and lifestyle questions. This streamlined process removes major friction points that have historically deterred consumers, particularly younger, tech-savvy generations, from securing this type of coverage. Once approved, a policy can be in force within minutes, a stark contrast to the industry's traditional timelines.

"At North American, we are committed to innovation, expanding access to financial protection and cash value accumulation,” said Jerry Blair, President of North American, in the announcement. “By combining our trusted products with Ethos’ cutting-edge technology, we are making accumulation-focused life insurance more accessible, faster, and easier than ever.”

The product itself is designed to be competitive, offering features such as net-zero cost loans, interest and loan bonuses, and a choice of nine different index options for its cash value component. It also includes broad living benefits and access to Ethos' digital estate-planning tools, creating a more holistic financial safety net for families.

"We’re proud to partner with industry leader North American to bring Accumulation IUL to market,” stated Peter Colis, Co-Founder and CEO of Ethos. “With this collaboration, we’re not just delivering another life insurance product—we’re empowering agents to grow their business faster and helping families protect their futures with speed, simplicity, and confidence.”

Tapping into a Growing Market for Wealth Accumulation

The launch is strategically timed to capitalize on a burgeoning demand for flexible financial products. Indexed Universal Life has become a powerhouse in the insurance market, accounting for nearly a quarter of all U.S. life insurance premiums sold. Industry data from LIMRA shows IUL sales reached record highs in recent years, with projections for continued growth as consumers seek products that offer both a death benefit and a hedge against market volatility.

IUL policies are attractive because they offer the potential for tax-deferred cash value growth tied to indices like the S&P 500, but with a crucial feature: a 0% or 1% floor that protects the principal from market downturns. This unique combination of upside potential and downside protection has resonated with a wide demographic, from middle-income families looking to build a financial buffer to high-net-worth individuals using it for estate planning and tax diversification.

This partnership directly targets the significant untapped market of approximately 50 million middle-income American adults who are uninsured or underinsured. By simplifying the application and underwriting process for a product historically seen as complex and exclusive, Ethos and North American are betting they can attract a new wave of customers who value both digital convenience and robust financial features.

The Strategic Alliance: Insurtech Agility Meets Incumbent Scale

This collaboration exemplifies a critical trend shaping the future of finance: the convergence of insurtech startups and established carriers. For North American, a member of the financially robust Sammons® Financial Group, partnering with Ethos provides an immediate and powerful entry into the world of digital-first distribution. It allows the legacy insurer to modernize its customer experience, reach new demographics, and deploy its products with a speed that would be difficult to achieve through internal development alone.

The pandemic served as a powerful catalyst, forcing the historically slow-moving insurance sector to accelerate its digitization efforts. This partnership is a direct result of that evolution, moving beyond simple term life products into the more complex realm of permanent, cash-value insurance.

For Ethos, the alliance is equally strategic. It adds a sophisticated, accumulation-focused product to its digital shelf, expanding its appeal beyond pure protection to wealth-building. Furthermore, the backing of a top-rated carrier like North American lends immense credibility and financial stability to its offerings, reassuring consumers and agents alike. North American joins a prestigious roster of Ethos partners, including Banner Life, TruStage™, and Protective, underscoring the success of its platform-based model.

Under the Hood: Technology and Regulatory Scrutiny

Delivering an "instant decision" on a $2 million IUL policy is a feat of data science. Ethos' platform leverages sophisticated algorithms and machine learning to analyze vast datasets—including public records, prescription history, and other sources—in real-time. This allows its underwriting engine to assess risk with a high degree of accuracy without requiring the applicant to undergo a physical exam or submit bodily fluids.

However, this speed and convenience come with significant regulatory responsibilities. The insurance industry is regulated on a state-by-state basis, and digital underwriting models face intense scrutiny to ensure they are fair, accurate, and free of discriminatory bias. Insurers must demonstrate to regulators that their algorithms do not unfairly penalize certain populations.

Furthermore, the complexity of IUL products themselves has drawn regulatory attention. The National Association of Insurance Commissioners (NAIC) has implemented guidelines like AG 49-B to standardize how IUL illustrations project future returns, aiming to prevent misleading sales practices. Any digital platform selling these products must ensure its marketing and disclosures are transparent, compliant, and help consumers understand both the benefits and the risks, such as the impact of policy fees and interest rate caps on performance.

By embedding a complex, regulated product into a seamless digital journey, Ethos and North American are not just launching a new product; they are testing the future framework for how insurance is sold and managed. Their success could set a new benchmark for the industry, pushing competitors to accelerate their own digital strategies and further blurring the lines between technology and traditional finance.