Lumico is not one of our top-rated life insurance companies. You can check out our list of the best life insurance companies for what we think are better options.
The benefits explained
- Several riders available: Lumico offers a few optional life insurance riders for additional coverage. Plus, every life insurance policy includes a free terminal illness rider.
- Policies without medical examination: With Lumico, you can purchase a term or whole life insurance policy without a medical exam. Your eligibility is based on your answers to a health questionnaire.
- Available in most states: Currently, Lumico sells life insurance in all states except New Jersey and does not provide coverage in Washington DC. However, not all life insurance products are available in all states.
Disadvantages Explained
- Only offers up to $1 million in coverage: The maximum amount of coverage you can get from Lumico is $1 million, so it’s not suitable for people who need more protection.
- Term policies are not convertible: Lumico term life insurance policies are not convertible. Your coverage ends at the end of the term and you must purchase another policy if you wish to continue your coverage.
Index of complaints
When it comes to customer experience, Lumico doesn’t fare well. The company has an extremely high number of complaints, according to data from the Complaints Index of the National Association of Insurance Commissioners (NAIC).
The NAIC Complaints Index measures the number of complaints an insurance company receives, relative to its size. If a company has an expected number of complaints for its size, it has an index of 1.0. Companies with more complaints than expected score above 1.0 and companies with fewer complaints than expected score below 1.0.
When evaluating Lumico’s customer experience, we averaged its annual Complaint Index scores over a three-year period. We found that Lumico’s complaint index is 12.537. This score indicates that Lumico has many more complaints than expected for a company of its size.
For comparison, of the 91 life insurance companies we looked at, most have complaint indices below 1.0, and only two have a higher complaint index than Lumico.
Third-party reviews
Lumico has an A (Excellent) rating from AM Best, indicating that it has excellent financial strength. Credit rating agency AM Best provides ratings to companies based on their financial stability, which takes into account factors such as balance sheet performance and debt. Lumico’s AM Best rating shows the company can meet policyholder obligations and pay life insurance claims.
Policies available
Lumico offers three types of life insurance: term, whole and final expense. After answering a few health questions, qualified applicants can get same-day coverage without taking a medical exam. However, keep in mind that you need to call an agent to get a quote, submit a request, and complete the buying process.
Term life insurance
Term life insurance is a term life insurance policy. It provides coverage for a fixed period of time, usually between 10 and 30 years. Term life insurance has fixed premiums that remain stable for the duration of the term, as well as a guaranteed death benefit. If you die during the term, your beneficiary receives the death benefit, which is tax-free money that can be used for any purpose.
Lumico offers term life coverage in periods of 10, 15, 20 or 30 years. At the end of the term, you have the option of renewing your policy on an annual basis, but the premiums will increase each year. Additionally, Lumico does not currently offer conversion on any of its products.
Whole life insurance
Whole life insurance is a type of permanent life insurance that lasts until your death. Whole life policies have level premiums and a guaranteed death benefit, as long as you continue to pay the premiums. Whole life insurance also accumulates cash value, which can be withdrawn or borrowed during your lifetime.
End-of-stay expense insurance
End-of-life or funeral expense insurance provides small coverage typically used to pay for end-of-life expenses, such as funerals. Final expense policies do not require a medical exam, but may have some health questions, depending on the type of underwriting used. Guaranteed issue life insurance is a type of final expense coverage that guarantees approval as long as you meet the age criteria.
Some of Lumico’s final expense insurance policies have a graduated death benefit. If you die within the first three years of your policy, your beneficiary will not be entitled to the full death benefit.
Runners available
Lumico offers several life insurance riders, which are riders that provide coverage in specific circumstances. Some runners are free, and others cost more and will increase your bounty. Lumico offers a free rider and several optional riders.
Children’s Term Insurance Rider
A children’s term insurance rider provides a small amount of life insurance for your dependent children. With Lumico, you can add this rider for your eligible children aged 15 days to 22 years. Coverage is available from $2,000 to $10,000, or up to the face value of the term policy (whichever is lower). Cover expires when the child turns 25. You can add this rider to a term life insurance policy for an additional fee.
Premium waiver
With a waiver of premium rider, your life insurance premiums will be waived if you become totally disabled for at least six months. However, you must meet certain conditions in order to use this endorsement. Lumico’s Premium Waiver Rider can be added to a term life insurance policy for an additional fee if you are between 18 and 55 years old. The rider expires at age 65 or when the policy expires, whichever comes first.
Accidental Death Benefit
The Accidental Death Benefit Rider will pay an additional death benefit to your beneficiary if you die and your death is caused by a qualifying accident. This rider can be added to term life or whole life insurance for an additional fee. You can add the rider to your policy until age 60, but it will expire at age 70. The amount of coverage available can be up to 100% of the face value of your base policy or $250,000, whichever is lower.
Terminal Illness Rider
Lumico’s Term Life, Whole Life and Final Expense policies include a free Terminal Illness Rider. If you are diagnosed with a terminal illness and have a life expectancy of 12 months or less, this rider allows you to withdraw money from your death benefit to use for any purpose. The maximum amount you can withdraw is 50% of the face value of your policy, or $500,000, whichever is less.
Customer service
To reach a representative at Lumico, you can call the company at (866) 440-4047 or email customerservice@lumico.com. Lumico’s hours of operation are Monday through Friday 8 a.m. to 6:30 p.m. CST and Saturday 8 a.m. to 12 p.m. CST.
Our Methodology: How We Review Life Insurance Companies
We have designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank over 90 insurers in five general categories: financial stability, customer satisfaction, variety of products and features, experience of overall purchase and cost.
To do this, we collected over 5,000 data points and scored each company based on 55 metrics. We’ve grouped the metrics by category to see insurers’ performance in each; we then weighted the category scores to determine overall business performance.
To learn more, read our Comprehensive Life Insurance Methodology.