Lumico Life Insurance Review

Simple policy options for coverage under $1 million

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Lumico Life Insurance

Lumico Life Insurance 

Our Take

Lumico Life Insurance Company is a smaller carrier that operates in 49 states (excluding New Jersey). The company offers term life, whole life, and final expense coverage with limits as high as $1 million, though there are few coverage and rider options to choose from. Lumico life insurance policies are sold through partner companies across the country.

  • Pros & Cons
  • Key Takeaways
  • Company Overview
Pros & Cons
Pros
  • Available in most states

  • Online quotes offered

  • Three policy options to choose from

Cons
  • Cannot buy a policy online

  • Few riders to choose from

  • $1 million in maximum coverage

Key Takeaways
  • Lumico sells life insurance coverage through partner companies in all states except New Jersey.
  • You can purchase term life, whole life, or final expense coverage, with limits as high as $1 million.
  • Rider options are limited, but accelerated death benefits are included at no additional charge.
  • Lumico has an A financial strength rating from AM Best, though the company’s NAIC complaint index ratings are subpar.
Company Overview

Formerly named Generation Life Insurance company, Lumico was founded in 1965. It is owned by parent company, Swiss Re, which is headquartered in Zurich, Switzerland. Lumico offers a range of insurance products including term, whole, and final expense life insurance coverage in addition to Medicare supplement insurance and accidental death insurance.

Geographical Restrictions

Lumico Life Insurance Company operates in 48 states, excluding New York and New Jersey. Lumico Life Insurance Company of New York sells coverage in New York state, leaving New Jersey as the only state in which Lumico does not operate.

  • Year Founded 1965
  • Kinds of Plans Term life, whole life, final expense
  • Number of Plans 3
  • Payment Plan Options Monthly, quarterly, semi-annually, annually
  • Customer Service Phone (866-440-4047 from 8 a.m. to 6:30 p.m. CST, Monday through Friday, and 8 a.m. to 12 p.m. CST on Saturday) or email (customerservice@lumico.com)
  • 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.

Pros Explained

  • Available in most states: While you cannot buy a policy in New Jersey, Lumico coverage is offered in the other 49 states.
  • Online quotes offered: You are able to shop around for both term and whole life policies online through Lumico’s website.
  • Three policy options to choose from: Lumico offers term life, whole life, and final expense coverage to meet a variety of financial needs.

Cons Explained

  • Cannot buy a policy online: Even though you can price out coverage online through a web quote, you cannot buy your policy online. Instead, you’ll need to work with a local agent to purchase Lumico coverage.
  • Few riders to choose from: There are only four riders to choose from with Lumico, and not all of those riders are offered on all policies.
  • $1 million in maximum coverage: Depending on how much life insurance coverage you need, Lumico might not be able to adequately protect your loved ones. The carrier offers term and whole life policies that max out at just $1 million, sometimes lower, based on your age.

Available Plans

There are three types of life insurance coverage offered by Lumico. 

Term Life

With term life coverage, you can protect your loved ones with a level death benefit for a specific number of years. Policies are available in 10-, 15-, 20-, and 30-year term options and include a level premium payment. Term policies are offered for $30,000 up to $1 million in coverage for issue ages 18 through 70, depending on policy term. An accelerated death benefit rider is included with this policy at no additional charge.

Whole Life

Lumico’s whole life policy is offered to issue ages 18 through 80. It provides between $30,000 and $1 million in permanent life insurance protection, depending on age, with a level monthly premium. This policy also builds a cash value that you can access if needed and includes an accelerated death benefit rider at no additional cost.  

Simplified Issue Final Expense

Available to issue ages 50 through 85, Lumico offers simplified issue final expense coverage designed to provide your loved ones with financial support for things like medical bills, funeral expenses, and other final costs. This policy provides between $5,000 and $30,000 in permanent coverage, which doesn’t expire until age 121. 

Lumico’s final expense policy has a graded benefit for the first three years; if you pass away (and your death is caused by anything other than an accident), your beneficiaries will receive 25% of the coverage amount in the first year, 50% of the coverage amount in the second year, and 75% of the coverage amount in the third year. Optional riders include an accelerated death benefit and accidental death coverage.

Available Riders

Lumico allows policyholders to add a few different riders to their policies. These riders, which may come at an additional cost, provide added benefits that can be helpful to you and your beneficiaries.

Accelerated Death 

If you are diagnosed with a terminal illness and given 12 months or less to live, the accelerated death benefit (ADB) rider allows you to access a portion of your policy’s face value while you’re living. This rider is offered on Lumico policies at no additional cost and allows you to withdraw between 10% and 50% of your policy’s face value (or between $100,000 and $500,000, whichever is less).

Accidental Death

If you pass away as the result of an accident, this rider provides your loved ones with an additional benefit on top of your policy’s face value. The accidental death rider is available for issue ages 18 through 60 and expires at age 70. Its benefit is $250,000 or 100% of the policy’s face value, whichever is greater.

Waiver of Premium

If you were to become totally and permanently disabled, your life insurance coverage would continue as scheduled with the waiver of premium rider, but your policy premiums will be waived. 

Customer Service

If you have questions about Lumico’s products, want to make changes to your policy, or need to file a claim, their customer service department is available to help. You can contact Lumico by phone at 866-440-4047 from 8 a.m. to 6:30 p.m. CST, Monday through Friday, and 8 a.m. to 12 p.m. CST on Saturday. You can also reach Lumico by email at customerservice@lumico.com. 

Since Lumico does not sell policies directly, you’ll need to purchase coverage through a local partner company in their network. If you’ve already purchased a policy, you can contact your partner agent with any questions you have or changes you need to make to your coverage.

Complaint Index

Each year, the National Association of Insurance Commissioners (NAIC) issues insurance carriers a complaint index. This rating measures the number of consumer complaints that the carrier received that year, adjusted for the carrier’s total market share and how many complaints they were expected to receive. 

The average number of consumer complaints expected is represented by a complaint index of 1.0. If a company’s complaint index is below 1.0, they received fewer complaints than expected that year; if the complaint index is greater than 1.0, they received more than the expected number of complaints. For example, a complaint index of 2.0 means that a carrier had twice the expected number of consumer complaints.

For 2020, Lumico received an overall company complaint index of 3.73, which represents 14 total complaints. Of those, 10 complaints were related to individual life insurance coverage, giving the carrier an individual life insurance complaint index of 8.12. 

In 2019, Lumico’s individual life complaint index was 11.60 (12 complaints) while in 2018, it was 17.77 (8 complaints). While these numbers are notably high—due, in part, to the company’s size and market share—there is a downward trend in recent years, showing that Lumico is continuing to improve. 

Third-Party Ratings

A carrier’s financial stability rating is a good indicator of the company’s solvency and the likelihood that they will be there for your loved ones if and when a claim ever needs to be filed. The most trusted third-party rating for financial stability comes from AM Best. 

According to AM Best, Lumico has a financial strength rating of A (Excellent). This is the third-highest rating possible.

Another important third-party rating comes from J.D. Power, a globally recognized leader in consumer satisfaction and industry insights. Each year, J.D. Power releases a study on the top life insurance carriers in terms of customer satisfaction and how each company compares to the industry average. Lumico was not included in the J.D. Power 2020 U.S. Life Insurance Study; while we are not told why this carrier was not listed, it could possibly be due to the company’s size or low consumer satisfaction ratings. 

Cancellation Policy

If you decide to cancel your life insurance coverage, you can generally do so at any time and for any reason. However, it’s important to note that there may be financial implications depending on the policy you own.

When it comes to term life insurance, you can either contact your agent or Lumico customer service to cancel your policy. Your coverage will also lapse if you fail to make premium payments as scheduled. Since term life insurance does not build up a cash value, you will not receive anything back when you cancel your policy.

With permanent life insurance, things are more involved. Since these policies also build up a cash value over time, you can usually expect to get some of that back if you cancel, once any applicable surrender fees are deducted.

Price

The cost of life insurance coverage depends on a few personal factors. For starters, the type of policy you buy matters—generally, term life is more affordable than permanent coverage—as does the value of death benefit you choose. Your life insurance premiums will also be impacted by any riders or coverage options you add to your policy.

Additionally, your personal factors will affect how much you pay for life insurance. Things like your age, location, medical and health history, tobacco use, occupation, hobbies, and even gender will play into your premiums. 

What You Need to Know

Being non-binary or transgender does not prevent you from buying life insurance coverage, but it can make the process a bit confusing. Although many life insurance carriers will use applicants’ birth gender to underwrite policies, Lumico does ask which gender you identify with in order to calculate premiums.

Competition

Now you know all about Lumico, but how does this carrier compare to some of the best life insurance companies around? To help answer this question, we put Lumico up against Transamerica, one of the 10 biggest carriers in America and a trusted name since 1904.

Though Transamerica is a notably larger company than Lumico, both carriers have earned A (Excellent) financial strength ratings from AM Best. Neither company offers dividends on permanent policies, and both require you to work with an agent or partner company to purchase coverage rather than buying online or direct.

Transamerica, however, operates in all 50 states and offers eight plan options to Lumico’s three. And, while Transamerica’s complaint index is higher than average, it is considerably lower than Lumico’s NAIC rating from 2020. Both carriers have term and whole life coverage, but Lumico offers final expense, and Transamerica offers a number of universal life policies.

If you’re looking for trusted coverage from a top-10 carrier and want more plan options to choose from, Transamerica may be the better option.

  Lumico Transamerica
Market Share Unranked, 0.49% U.S. market share Eighth-largest in the U.S., 3.4%
Number of Plans 
Dividends for 2020  Not applicable  Not applicable 
Service Method  Partner companies and agents  Agents 
AM Best Rating  A (Excellent)  A (Excellent) 
Price Rank  Not available  Fair 
Complaints Trend  8.12 Very poor  1.31 Below average 
Final Verdict

Lumico offers simple life insurance plans (term life, whole life, and final expense) with coverage up to $1 million. While this carrier doesn’t have many policy riders or extra features, it does offer coverage in 49 states and includes accelerated death benefits at no additional charge.

Our Methodology: How We Review Life Insurance Carriers

At Investopedia, we implement a comprehensive methodology to help us ensure that we are providing readers with the most accurate and helpful life insurance carrier reviews. This includes analyzing each company’s products, plan availability, customer service options, and pricing. We also consider important factors like third-party ratings, consumer satisfaction, and industry rankings when making our determinations.

Article Sources

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  1. NAIC. "Lumico Life Ins Co National Complaint Index Report." Accessed May 17, 2021.

  2. J.D. Power. "2020 U.S. Life Insurance Study." Accessed May 18, 20201.