If you’re looking for term or whole life insurance without a medical plan, Lumico Life insurance offers diverse options. Term life insurance comes in 10-, 15-, 20- and 30-year options. With term policies, you get fixed premiums for the policy’s duration. Lumico’s term policies also offer a guaranteed death benefit if you die during the term. However, you cannot convert term policies into whole-life policies.
With Lumico’s whole-life coverage, you’ll pay a flat premium on coverage up to $1 million, which might be too low for some clients. However, Lumico offers excellent financial strength and fair policy pricing.
The stain on Lumico’s otherwise excellent offerings is extensive customer complaints. As you’re relying on an insurance provider’s goodwill during difficult life transitions, so many customer complaints aren’t a good sign.
Instead of a medical exam, Lumico Life looks at factors such as:
- Age
- Gender
- Health status
- Health history
- Family health history
- Tobacco use
- Occupation
- Hobbies
- Three insurance options plus multiple riders
- Free terminal illness rider
- No medical exam policies
- Apply with a simple health questionnaire
- Available in all states except Washington, D.C. and New Jersey
- Not all policies are available in all states
- Maximum coverage amount of $1 million
- Term policies aren't convertible to whole life insurance
- Major customer complaints are a red flag
Lumico Life Insurance Ratings at a Glance
Lumico Life Insurance offers whole life, term and final expense insurance. With diverse medical riders and no medical exam, Lumico is available in most states. While Lumico was originally established as an insurance provider, it also offers several Medicare supplements, or Medigap, plans.
As the Lumico Life insurance review below reveals, it is a great company for no-medical exam insurance options. However, its customer complaints are high.
Lumico Life Insurance Review
As the financial strength of an insurance provider is essential to ensure it will be able to pay out, let’s look at that first. A.M. Best is a credit rating agency that provides letter grades for companies’ financial stability. Lumico has received an A rating (Excellent) from A.M. Best, indicating excellent financial strength. This rating demonstrates Lumico’s strong ability to meet policyholder obligations and pay full life insurance claims.
Regarding customer reviews, Lumico is near the bottom of the pack. It's a poor showing with 3.3 out of 5 stars on Google ratings and only 11 reviews. Likewise, while not rated by the Better Business Bureau, customers rated Lumico with 2.65 out of 5 stars on 54 reviews.
Data from the National Association of Insurance Commissioners (NAIC) Complaint Index rated Lumico poorly. According to the NAIC rating system, a score of 1.0 represents average complaints for company size. A lower score indicates exceptionally low complaints, while a higher score indicates more complaints. Lumico received a score of 12.537, higher than most insurance providers.
You can reach Lumico customer service between 8 a.m. to 6:30 p.m. Central Standard Time from Monday through Friday or from 8 a.m. to 12 p.m. on Saturdays.
- General contact: 800-589-0087
- Lumico customer service phone: 866-440-4047 (press 4)
- Email: support@lumico.com
Lumico offers term and whole life insurance as well as final expense insurance. Each policy has pros and cons. Here are how each of these stack up.
Term Life Insurance
Term life insurance from Lumico Life has coverage options ranging up to $1 million. You can choose a policy of 10, 15, 20 or 30 years. With Lumico Life term insurance, you'll pay set premiums and get a guaranteed death benefit. Beneficiaries receive the death benefit tax-free if you die during the term. When the term ends, you'll have the option to renew the policy on an annual basis, with increasing premiums. You cannot convert Lumico Life term insurance to whole life insurance policies.
You’ll need to answer questions about your health as part of the application process. Lumico Life uses your responses and third-party data to determine premiums.
Whole Life Insurance
Lumico Life's whole life insurance is a type of permanent life insurance that remains in effect until you die. With whole life insurance, you'll have fixed premiums. The policy will accumulate cash value that can be withdrawn or borrowed during your lifetime. Whole life insurance offers guaranteed death benefits as long as you continue to pay premiums.
Final Expense Insurance
Final expense or burial insurance offers coverage to pay for end-of-life expenses, like a funeral. This type of insurance doesn't require a medical exam. Instead, you'll be asked to fill out a health questionnaire.
Within final expense insurance, Lumico offers three plans: preferred, standard and modified, with differences in maximum coverage and payout waiting period. The maximum from Lumico final expense insurance is $30,000.
Riders
Lumico also offers a child term rider, waiver of premium, accidental death benefit and terminal illness rider. These riders offer greater flexibility to increase coverage or withdraw the policy's face value sooner.
| Age and gender/coverage amount for term life insurance | $250,000 | $500,000 | $750,000 | $1 million | $2 million |
| Male, 20 | $18 | $29 | $40 | $47 | $86 |
| Female, 20 | $15 | $22 | $30 | $35 | $64 |
| Male, 30 | $18 | $29 | $40 | $47 | $89 |
| Female, 30 | $15 | $23 | $31 | $37 | $69 |
| Male, 35 | $19 | $31 | $44 | $52 | $99 |
| Female, 35 | $17 | $26 | $36 | $43 | $79 |
Factors to Consider
Whether you’re considering term life insurance, whole life insurance or final expense benefits, these plans can protect your loved ones and offer peace of mind. When choosing the best life insurance policies for your needs, weigh coverage amounts, costs, customer service and possible alternatives based on age. Factors to consider include:
Coverage
Lumico Life term life insurance allows you to select policies from $250,000 to $1 million. For whole life insurance, the maximum coverage is $35,000. However, whole life policies may have a delayed benefit. Double-check applicable coverage and compare coverage and costs to similar plans to find the best fit for your family.
Costs
Costs vary widely with both term and whole life insurance. A plan that includes a medical exam can be more cost-effective for healthy people without pre-existing conditions. However, guaranteed life insurance can offer simplicity.
For younger adults, term life insurance is protection in case the worst happens. Weigh monthly insurance costs against additional options such as savings accounts and investment accounts, especially for whole life insurance or final expense insurance policies, as there may be better ways to save funds for your family.
Customer Service
When you choose life insurance, you rely on the dedication, financial stability and goodwill of the company offering the insurance. A company with exceptional customer service means you know your family will be protected. Read reviews and check Better Business Bureau ratings to select a reliable company with good customer service.
Alternatives
Term life insurance can offer protection and peace of mind, especially for adults supporting their families. Whether whole life insurance is cost-effective depends on your financial situation and goals. Consider if you can claim life insurance as a business expense.
Other alternatives for whole life insurance include investment accounts or savings accounts. If you put $150 per month in a savings account from age 65 to age 85, you’d have $46,000 in savings deposits before accounting for interest — more than the maximum final expense insurance policy offered by Lumico Life Insurance.
How Much Does Term Life Insurance Usually Cost?
Term life insurance costs vary by your age you take out the policy, policy duration, coverage amount, and health and lifestyle factors. The average 20-year term policy with $500,000 of coverage for a 40-year-old costs about $26 per month. This is comparable to Lumico Life insurance, although Lumico rates may vary.
Why You Should Trust Benzinga
Benzinga aims to offer you the most thoroughly researched and fair financial information on the market. As part of the review on Lumico Life Insurance, Benzinga took into account insurance policies available, coverage amounts, financial performance and customer reviews to provide you with unbiased information.
Is Lumico Life Insurance Legit?
Yes, Lumico life insurance is not only legit but reliable. Whether Lumico insurance is the right choice for your family's needs will depend on your financial situation, lifestyle, health and goals. If you're young and healthy, a 30-year term life insurance policy can be an inexpensive option to protect your family.
For those with little savings or a pre-existing condition, whole life or final expense insurance can offer peace of mind. Remember to carefully research options, read the fine print and speak with a Lumico representative to understand its offerings for you. Consider also the best credit life insurance and the best life insurance policies for couples.
Frequently Asked Questions
What is the rating for Lumico life insurance?
The financial strength rating for Lumico life insurance is an A, meaning it has excellent financial strength and reliability.
What is the waiting period for Lumico life insurance?
Waiting periods for Lumico life insurance vary by plan. For some policies, Lumico life insurance has a three-year waiting period. For the final expense benefit, the waiting period varies from zero waiting to a waiting period with graded benefits.
Can I borrow money from my Lumico life insurance policy?
Yes, with a whole life Lumico insurance policy, you can borrow against the cash value, tax-free, as long as you continue to pay premiums.
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Methodology
Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.
About Alison Plaut
Alison Plaut is a personal finance, business, and insurance writer with a sustainable MBA, passionate about helping people understand insurance choices and financial options to create financial freedom. She has more than 17 years of writing experience, focused on insurance, real estate, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she is a regular contributor for Benzinga.