Assurance Life Insurance Review

An online marketplace for term, whole, and final expense life insurance policies

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Assurance

Assurance Life Insurance

Our Take

Assurance is an online marketplace where you can purchase a range of insurance products online or through its agents. Policies are typically simplified issue, meaning you don’t have to get a medical exam, making Assurance a good option for busy professionals who want to get coverage quickly. 

  • Pros and Cons
  • Key Takeaways
  • Company Overview
Pros and Cons
Pros
  • Some riders included

  • 30-day refund policy

  • Online quotes available

Cons
  • Limited information about available plans

  • Agents work solely on commission

  • High level of customer complaints

Key Takeaways
  • Assurance is an insurance marketplace, not a direct insurer
  • Life insurance policies are issued by Prudential or Lumico
  • It sells term, whole, and final expense policies
  • Policies can be purchased online or through independent sales agents
  • Assurance life insurance policies are available in all 50 states
Company Overview

Assurance IQ was launched in 2016 as an online marketplace for multiple insurance products, including life, auto, health, and Medicare supplement policies. It was acquired by Prudential in 2019 and is now a wholly owned subsidiary of Prudential Financial. 

Assurance IQ generally uses the name Assurance for marketing purposes. The company is based in Bellevue, Washington, and sells policies through its website and independent sales agents. 

Assurance doesn’t underwrite or issue policies. Instead, its life insurance policies are through Prudential and Lumico. It sells life insurance to residents of all 50 states. 

  • Year Founded 2016
  • Kinds of Plans Term, whole, final expense
  • Number of Plans 3
  • Payment Plan Options Monthly, quarterly, semi-annually, annually
  • Customer Service Phone, agent
  • Phone 844-563-0386
  • Official Website www.assurance.com

Pros Explained

  • Some riders included: With some policies purchased through Assurance, insurance riders may be included. For example, an accelerated death benefit rider is included on term life policies. 
  • 30-day refund policy: While most companies offer a 10-day free look period, Assurance gives customers more time. You have 30 days to review your policy documents. If you cancel within 30 days of your policy’s issue date, you’ll get a full refund. 
  • Online quotes available: You can get quotes for term life insurance and even start your application for coverage online. 

Cons Explained

  • Limited information about available plans: Assurance does not publicly post information about its available plans or riders. The only way to get more information is to request a quote or contact an agent. 
  • Agents work solely on commission: While you can consult with an agent about your policy options, agents work completely on commission; they have a financial incentive to sell you certain policies. 
  • High level of customer complaints: Lumico and Prudential—the companies that issue Assurance’s policies—have received more complaints than is typical for insurance companies of their size. 

Available Plans

Assurance is an online marketplace. For life insurance, it offers policies underwritten by Prudential and Lumico, but Lumico is the company most commonly mentioned on the Assurance site. Most policies don’t require medical exams unless you exceed the guaranteed coverage amount. 

There are three policy options available through Assurance: 

Term Life

Term life insurance is a simple, affordable option. It provides a death benefit if you die within your policy’s covered term. With Assurance, you can choose a term of 10, 20, or 30 years. Coverage amounts up to $500,000 are available through the site, though you may be eligible for higher coverage amounts if you’re willing to have a medical exam. 

Whole Life

Whole life insurance lasts for your lifetime rather than a covered term. Whole life policies can also build cash value that you can tap into in the form of loans or withdrawals over time. As a permanent form of life insurance, whole life plans are more expensive than term life insurance. 

Final Expense

If you’re between the ages of 50 and 85, you may be eligible for a final expense policy. Through Assurance, you can get up to $30,000 in coverage designed to cover burial and funeral expenses. 

Assurance final expense policies are not guaranteed issue, so you can be denied based on your medical history and prescription records. 

Available Riders

With most life insurance companies, you have the ability to add optional insurance riders to your policy to get additional coverage, access your death benefit early, or to purchase life insurance for your family members. 

Assurance life insurance policies are more limited, but there are some riders that are included with your coverage. Depending on the type of plan you buy, you may have one or more of the following riders included with your policy: 

Accelerated Death Benefit

If you are diagnosed with a terminal illness and have a life expectancy of 12 months or less, the accelerated death benefit rider allows you to access up to 50% of your policy’s death benefit or $500,000, whichever is less, to pay for your expenses while you’re living. 

Accidental Death Benefit 

If you die in an accident while your policy is in force, the accidental death benefit will pay your beneficiaries an additional lump sum. 

Customer Service

Assurance’s website is very basic compared to the sites of other insurance companies. There is no information about its policy options or rates unless you go through the quote process. To get more detailed information, you must contact an agent. 

Assurance’s agents are independent and work on commission. To speak with an agent, call 844-556-8992. You can also send customer service a secure message through the Assurance website. 

Complaint Index

When comparing insurance companies, pay attention to the insurers’ complaint ratios. Issued by the National Association of Insurance Commissioners (NAIC), complaint ratios reflect the number of complaints that consumers submitted about companies relative to the companies' market share. 

The industry standard is 1.0. An insurance company with a ratio above 1.0 received more complaints than expected, while a ratio below 1.0 indicates the company received fewer complaints than expected. 

Because Assurance’s life insurance policies are issued by Prudential and Lumico, we looked up the complaint ratios for those two companies. Both companies have received more complaints than is typical. 

Lumico’s complaint ratio for 2020 was 3.46, over three times the industry standard. Complaints were about policyholder service, underwriting processes, and sales and marketing tactics. 

Prudential’s complaint ratio was 4.09. Complaints were mainly concerning policyholder service, claim handling, underwriting, and marketing. 

Lawsuits

In July 2021, a class-action lawsuit was filed against Assurance IQ and Lumico. The suit alleged that Lumico, through Assurance, placed thousands of robocalls and texts to customers without their consent. 

Third-Party Ratings

Both Prudential and Lumico have strong reputations within the insurance industry. AM Best, the credit rating agency that evaluates insurance companies, affirmed Lumico’s A (Excellent) rating in December 2020. In 2020, AM Best also affirmed the A+ (Superior) rating for Prudential. 

While Lumico was not included in the J.D. Power 2020 U.S. Individual Life Insurance Study, Prudential was part of the study. Prudential was ranked 11th out of 23 life insurance companies after being evaluated for its plans, pricing, and customer communications. 

Cancellation Policy

Most insurance companies follow 10-day "free look" period, giving customers 10 days to review their policy documents and cancel for a full refund. Assurance takes it a step further; customers have 30 days after their policies are issued to cancel their coverage and get a full refund. 

After that, customers can cancel at any time, but you will not get a refund of any premiums you’ve paid if you have term coverage. With whole life policies, you may get the surrender value of their policy if you’ve accumulated enough of a balance. 

To cancel your policy, contact Assurance at 844-556-8992. 

Price

Because Assurance’s policies are mostly simplified issue and sold online, they may be more expensive than the industry average. For $250,000 of term life coverage for a healthy 25-year-old male, Assurance quotes $37 per month—more than double the industry average. 

However, Assurance’s policies can be conveniently purchased online or over the phone, and they don’t require medical exams, so some people may decide the added cost is worth it for the convenience.  

25-Year-Old Male  10 Years  20 Years  30 Years 
Monthly Premium on $250,000 Term $37  $43  $57 

You can get quotes online, but for detailed policy and rate information, you’ll have to contact an agent. 

As with other life insurance companies, Assurance requires you to select either “male” or “female” when you get a quote or apply for insurance. Being nonbinary doesn’t disqualify you from getting life insurance. However, you should be aware that most insurance companies haven’t updated their underwriting processes to reflect a current awareness of gender issues. 

Competition

While Assurance offers a convenient way to purchase life insurance, it has limited information about its policies, and it may be more expensive than other companies. If you’re looking for a more affordable option with a better track record of customer service, consider Mutual of Omaha, one of our top life insurance picks. 

Mutual of Omaha sells 11 different life insurance policies, giving you more options than Assurance. You can purchase term, whole, and universal life policies. Some of its policies are available without medical exams, and Mutual of Omaha has many optional riders you can add to your policy to customize your coverage. 

Where Mutual of Omaha really surpasses Assurance is in customer service. Its complaint ratio was 1.22—just above the industry standard—but it was ranked fifth out of 23 companies in the J.D. Power 2020 U.S. Individual Life Insurance study.

  Assurance (Issued by Prudential and Lumico) Mutual of Omaha 
Market Share Prudential: fifth-largest in the U.S., 4.6%

Lumico: N/A
17th-largest in the U.S., 1.4%
Number of Plans  3 11 
Dividends for 2020  N/A  N/A 
Wellness Program Discounts/Quit Smoking Incentives  N/A  N/A
Service Method  Online, Agents  Online, Agents 
AM Best Rating  Prudential: A+

Lumico: A 
A+ 
NAIC Complaint Index  Prudential: 4.09

Lumico: 3.46 
1.22
Final Verdict

If your priority is on a convenient application process, Assurance could be a good match. You can get quotes for coverage from multiple insurers and apply for some policies online. However, its information is very limited, and its policies are likely more expensive than you can find elsewhere. For most people, you’d be better off purchasing coverage directly from another company.

Methodology

Our reviews of life insurance companies are based on a quantitative methodology that analyzes each insurer on their stability and reliability, customer service, claims experience, diversity of product lines, and cost. We compare the terms of each type of policy offered—including available coverage amounts, optional riders, and premium payment options—with those of other major life insurance companies. Lastly, we look at how the company is rated by third-party organizations to determine its reliability and overall reputation.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. Prudential. "Assurance IQ." Accessed August 8, 2021. 

  2. Prudential. "Prudential Financial to Acquire Assurance IQ, Inc., a Leading Consumer Solutions Platform for Health and Financial Wellness Needs, for $2.35 Billion." Accessed August 8, 2021. 

  3. NAIC. "Lumico Life Insurance Company." Accessed August 8, 2021. 

  4. NAIC. "Complaint Code - Lumico Life Insurance Company." Accessed August 8, 2021.

  5. NAIC. "Complaint Index - Prudential Insurance Company of America." Accessed August 9, 2021. 

  6. NAIC. "Complaint Code - Prudential Insurance Company of America." Accessed August 9, 2021. 

  7. ClassAction.org. "Lumico, Assurance IQ Hit With Class Action Over Alleged Robocalls, Texts." Accessed August 8, 2021. 

  8. AM Best. "AM Best Affirms Credit Ratings of Lumico Life Insurance Company and its Affiliates." Accessed August 8, 2021. 

  9. Businesswire. "AM Best Affirms Credit Ratings of Prudential Financial, Inc. and Its Subsidiaries." Accessed August 9, 2021. 

  10. J.D. Power. "Life Insurance Customer Satisfaction Flatlines Despite Pandemic Fears, J.D. Power Finds." Accessed August 9, 2021. 

  11. LIMRA. "Facts About Life 2020." Accessed August 8, 2021.