Lumico Life Insurance Review

In this article...
  • Explore Lumico life insurance policies and get insight into the pros and cons of buying from the company, so you can decide if it's the right fit for you.

Lumico is on a mission to simplify life insurance and make it easy to choose a policy that's right for your needs. Exploring its product lineup and the pros and cons of buying from the company can help you determine if Lumico life insurance is right for you.

About Lumico Life Insurance

Lumico opened in 1965 as Generation Life Insurance Company. The company is now owned by Swiss Re, a large reinsurance company headquartered in Zurich, Switzerland. Its corporate headquarters is in Lincoln, Nebraska.

When it rebranded under its new name, Lumico shifted gears, simplifying its product lineup to make buying life insurance more straightforward. As a part of its vision, Lumico focuses heavily on educating customers about life insurance and avoids jargon and buzzwords in its marketing.

What Life Insurance Products Does Lumico Offer?

In keeping with its mission to streamline buying insurance, Lumico offers a limited number of policies. In addition to life insurance, the company sells Medicare supplement (Medigap) insurance and accidental death insurance through its health insurance division. Life insurance shoppers can choose from three products: term, whole life and final expense.

Lumico Term Life Insurance

Term life through Lumico is a coverage that lasts only for a specific period known as the term. Key features of the policy include:

  • Available terms of 10, 15, 20 or 30 years
  • Fixed monthly premiums
  • Provides up to $1 million in coverage
  • Requires completion of a medical questionnaire
  • No medical exam
  • More economical than whole life

Lumico Whole Life Insurance

With Lumico whole life insurance, you get coverage that lasts throughout your life. A portion of your monthly payment is placed in a cash account that increases in value over time. You can borrow against the account or make withdrawals to cover expenses before you die. Some key features of the policy are:

  • Fixed monthly premiums
  • Provides up to $1 million in coverage
  • Requires completion of a medical questionnaire
  • No medical exam
  • Most expensive option

Final Expense Life Insurance

Final expense life insurance through Lumico is an alternative to whole life intended to provide funds for your loved ones to settle your expenses after you die. Here are some key features of the policy:

  • Permanent lifetime coverage
  • Fixed monthly premiums
  • Provides up to $30,000 of coverage
  • Graded benefits, with beneficiaries receiving 25% of face value in the first year, 50% of face value in the second year, 75% of face value in the third year and 100% after that
  • Requires completion of a medical questionnaire
  • No medical exam
  • More economical than whole life

Lumico Life Insurance Riders

With the term and whole life insurance products offered through Lumico, you can add the following riders to enhance your coverage.

  • Accelerated death benefit: This lets you withdraw 10% to 50% of the face value of your policy if you are diagnosed with a terminal illness with a life expectancy of 12 months or less. In most cases, this rider is available free of charge.
  • Accidental death: This pays your beneficiaries additional money if you pass away due to an accident. The rider carries an additional fee and is only available for people aged 18 to 60. At age 70, the accidental death rider is eliminated from the policy. The benefit pays $250,000 or 100% of the policy's face value if it is worth more than $250,000.
  • Waiver of premium: This eliminates your monthly premium payments if you become totally and permanently disabled. You'll need to pay an additional fee to get this benefit.
  • Child rider: This provides limited life insurance coverage for your child until they reach the age of 18. This rider increases the cost of your monthly premium.

The Pros and Cons of Lumico Life Insurance

Many of the benefits of Lumico life insurance relate to the company's simplistic approach to coverage. Pros of buying from Lumico include:

  • Easy decision-making.With just three basic insurance products to choose from, you can choose one with greater ease.
  • No medical exam.Underwriting is based on a health questionnaire.
  • Simple application. Lumico's application is short and straightforward, cutting down on the risk of errors that can delay claims in the future.
  • Financially sound. The backing of Swiss Re provides peace of mind when buying from Lumico. As of 2021, AM Best gave the company a Financial Strength Rating of A, indicating excellent financial strength.
  • Widely available.Lumico is licensed to sell life insurance in the majority of U.S. states.
  • Online quote option. You can obtain an instant online quote to compare to other companies.

Although Lumico offers many advantages for customers, there are some downsides to buying from it. Some cons of Lumico life insurance are:

  • Limited choice. Selecting a policy is simple, but the limited number of products means you may not be able to find a policy that is the perfect fit for your needs.
  • No online buying.You can only purchase Lumico insurance through a local agent, and finding one you can contact directly is difficult. To purchase the insurance, you'll need to complete the free quote request and wait for someone to contact you.

Lumico Reviews: What People Are Saying

Online reviews indicate that Lumico's approach to life insurance delivers real benefits for customers. Customers frequently comment on how easy it was to choose a policy and describe agents as helpful and knowledgeable. In addition, reviewers point out that agents are easy to contact and that Lumico's in-house customer service team is simple to get in touch with by phone. Some reviews do indicate that Lumico's rates were higher than other companies. Others express frustration finding an agent to talk to about buying a policy.

Is a Lumico Life Insurance Policy Right for You?

Lumico life insurance may be the right fit for your needs if you:

  • Have never bought life insurance before and want things to be as easy as possible
  • Prefer to work with a local agent for buying and customer service
  • Want to avoid the hassles of medical exams
  • Wish to purchase a small final expense policy to pay for your burial
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