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Lumico Life Insurance is a decent provider, offering no-medical-exam term life, whole life, and final expense life insurance, along with a few crucial riders to boot. But Lumico has many more complaints than most of the life insurance companies we reviewed, which is a strong indication that it doesn’t provide a good experience for many customers and beneficiaries.
- Pros & Cons
- Company Overview
Several riders available
Available in most states
Only offers up to $1 million in coverage
Term policies aren’t convertible
High number of complaints for a company of its size
Lumico Life Insurance was founded in 1965 as Generation Life Insurance Company and is headquartered in Lincoln, Nebraska. The company recently changed its name to Lumico as part of a rebranding. The company’s life insurance products, which are sold through select agents, are available in every state, except New Jersey and Washington, D.C.
- Year Founded 1965
- Kinds of Policies Term life, whole life, final expense
- Payment Options ACH transfer, check
- Customer Service Phone: (866) 440-4047. Email: firstname.lastname@example.org
- Official Website www.lumico.com
Lumico is not one of our top-rated life insurance companies. You can review our list of the best life insurance companies for what we think are better options.
- Several riders available: Lumico offers a few optional life insurance riders for additional coverage. In addition, every life insurance policy includes a free terminal illness rider.
- No-medical-exam policies: Through Lumico, you can purchase a term or whole life insurance policy without taking 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 offer coverage in Washington D.C. However, not all life insurance products are available in all states.
- 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 aren’t convertible: Term life insurance policies from Lumico are not convertible. Your coverage ends when the term ends, and you must buy another policy if you want to continue your coverage.
When it comes to customer experience, Lumico doesn’t fare well. The company has an extremely high number of complaints, based on data from the National Association of Insurance Commissioners (NAIC) Complaint Index.
The NAIC Complaint Index measures the number of complaints an insurance company receives, in relation to its size. If a company has a number of complaints expected for its size, it has an index of 1.0. Companies with more complaints than expected have a score above 1.0 and companies with fewer complaints than expected have a score below 1.0.
In assessing 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 significantly more complaints than expected for a company of its size.
For comparison, out of the 91 life insurance companies we reviewed, most have complaint indexes below 1.0, and only two have a higher complaint index than Lumico.
Lumico has an A rating (Excellent) from AM Best, which indicates that it has excellent financial strength. The credit ratings agency AM Best provides letter grade scores to companies based on their financial stability, which accounts for things like balance sheet performance and debt. Lumico’s AM Best rating shows that the company can meet policyholder obligations and pay life insurance claims.
Lumico offers three types of life insurance: term, whole and final expense. After answering just a few health questions, qualified applicants can obtain same-day coverage without taking a medical exam. However, keep in mind that you have to call an agent to get a quote, submit an application, and complete the purchase process.
Term Life Insurance
Term life insurance is a temporary life insurance policy. It provides coverage over a fixed period of time, usually between 10 and 30 years. Term life insurance has fixed premiums that remain level over the duration of the term, as well as a guaranteed death benefit. If you pass away 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. When the term ends, you have the option to renew your policy on an annual basis, but the premiums will increase every year. Also, 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 stays in effect until you pass away. Whole life policies have level premiums and a guaranteed death benefit, as long as you continue paying the premiums. Whole life insurance also accumulates cash value, which can be withdrawn or borrowed while you are still alive.
Final Expense Insurance
Final expense or burial insurance provides a small amount of coverage typically used to pay for end-of-life expenses, like a funeral. Final expense policies do not require a medical exam, but may ask a few 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 fall within the age criteria.
Some of Lumico’s final expense insurance policies have a graded death benefit. If you pass away within the first three years of your policy, your beneficiary will not be entitled to the full death benefit.
Lumico offers several life insurance riders, which are endorsements that provide coverage for specific circumstances. Some riders are free, and others cost extra and will raise your premium. Lumico offers one free rider and several optional riders.
Child Term Rider
A child term rider provides a small amount of life insurance for your dependent children. With Lumico, you can add this rider for your eligible children between the ages of 15 days and 22 years old. Coverage is available from $2,000 to $10,000, or up to the face value of the term policy (whichever is less). The coverage expires when the child turns 25. You can add this rider to a term life policy for an added fee.
Waiver of Premium
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 have to meet certain requirements in order to use this rider. Lumico’s waiver of premium rider can be added to a term life policy for an added fee if you are between the ages of 18 and 55. The rider expires at age 65 or whenever the policy expires, whichever is sooner.
Accidental Death Benefit
The accidental death benefit rider will pay out an additional death benefit to your beneficiary if you pass away and your death is caused by a qualifying accident. This rider can be added to a term life or whole life policy for an extra cost. You can add the rider to your policy until age 60 but it will expire at age 70. The amount of coverage available is up to 100% of your base policy's face value or $250,000, whichever is less.
Terminal Illness Rider
Lumico’s term life, whole life, and final expense life insurance policies include a free terminal illness rider. If you get diagnosed with a terminal illness and are given a life expectancy of 12 months or less, this rider allows you to pull money out of your death benefit to use for any purpose. The maximum amount of money you can withdraw is 50% of your policy's face value, or $500,000, whichever is less.
To reach a representative at Lumico, you can call the company at (866) 440-4047 or send an email to email@example.com. Lumico’s business hours are Monday through Friday from 8 a.m. to 6:30 p.m. CST and Saturday from 8 a.m. to 12 p.m. CST.
Our Methodology: How We Review Life Insurance Carriers
We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost.
In order to do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each; we then weighted category scores to determine how companies performed overall.
To learn more, read our full Life Insurance Methodology.