Lumico Life Insurance Review (2023)
- Updated: January 6, 2023
- Rikin Shah | Licensed Life & Health Insurance Agent
- Fact-Checked (see our Editorial Guidelines)
- Lumico's Simplified Issue Final Exam plan requires no medical exam, making the application process straightforward.
- Lumico has flexible payment options. Unlike most competitors, credit cards are accepted to make monthly payments toward your premiums.
- All three plans offer two riders additional benefits. Accidental and Accelerated death benefit riders will provide additional financial protection for your family.
- While most modified and guarantee issue plans have 2-year waiting period, Lumico's modified plan has a 3-year waiting period. Likely not ideal for most seniors.
- Lumico's final expense plans offer lower coverage amounts compared to other competitors.
- Rates are significantly higher than other insurance companies.
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Who is Lumico Life?
Lumico, a Swiss RE-backed company, is best known for offering insurance products and services to families for over 150 years since its inception in 1865.
In the modern era, they have become a global financial services organization and Fortune 500 company, with an “A” rating from A.M. Best*.
Today, they have over $60 million in assets, and their industry-leading digital platform has allowed partners to quickly and efficiently market and distribute their products.
| Company 101 | Details |
|---|---|
| Founded | 1975 |
| Address | P.O. Box 83303 Lincoln, NE 68501-3303 |
| [email protected] | |
| Phone | 1-866-440-4047 |
| Website | https://lumico.com/ |
| BBB Rating | A+ |
| A.M. Best Rating | A |
Lumico offers three simplified issue life insurance plans:
Lumico Preferred Brochure
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Lumico Simplified Issue Final Expense Preferred Overview
Lumico Simplified Issue Final Expense Preferred is a whole life insurance policy specifically designed for those aged 40 to 80, that allows you to quickly and easily purchase coverage without the need for a medical exam.
The policy provides access to cash benefits in as little as 24 hours after a successful claim and has flexible coverage options to fit your individual needs.
State Eligibility
The policy is available in all states except Montana and New York. It’s important to note that this particular coverage will not be offered in those two states due to state-specific regulations.
Age Eligibility
Lumico Simplified Issue Final Expense Preferred is available to individuals between the ages of 40 and 80.
Coverage Amounts
Lumico’s Simplified Issue Final Expense Preferred policy offers coverage amounts of between $20,000 and $50,000, depending on the age of the insured.
For those aged 40 to 60, the maximum coverage amount is $50,000. Those aged 61 to 70 can obtain up to $40,000 in coverage; those aged 71 to 75 can get up to $30,000; and those aged 76 to 80 are eligible for as much as $20,000 in coverage. The policy lasts until the end of life.
| Age | Coverage Amount |
|---|---|
| 50-85 | $5,000 - $30,000 |
Death Benefit Terms
Lumico’s Simplified Issue Final Expense Preferred provides coverage for death benefits immediately upon policy issuance.
This means that the beneficiary will receive the full coverage in the event of death from any cause.
Cash Value
Lumico Simplified Issue Final Expense Life Insurance provides a death benefit and builds cash value over time. As policyholders make their premium payments, the coverage amount won’t decrease and will gradually increase in cash value.
When you die, Lumico will pay your beneficiaries cash equal to the face value of the policy.
The cash value that builds up in the policy is based on the current loan interest rate and is generally much higher than what you would receive from a savings account.
This means your money will be safe and secure and steadily increasing. You can also use this cash value to take out loans or make withdrawals on your policy if needed.
Available Riders
Lumico offers two riders to customize your policy.
| Rider | Cost | Description |
|---|---|---|
| The Accidental Death Rider | Additional Cost | It pays an additional lump sum amount if you die due to an accident while the policy is in force. It is available for an additional cost and has issue ages of 40-60 (or younger if the base policy restricts). The expiry age is 70, with the face amount equal to up to 100% of the base policy’s face amount or $50,000, whichever is less. |
| The Accelerated Death Benefit Rider | Included | This rider accelerates a portion of your death benefit if you are diagnosed with a terminal illness. The minimum amount that can be accelerated is 10% of your policy’s face amount or $10,000, whichever is greater. The maximum amount that can be accelerated depends on the policy’s face amount: if it is more than $20,001, then 50% of the policy's face amount can be accelerated; if it is less than $20,000 then 100% of the policy’s face amount or $10,000, whichever is less. |
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Lumico Simplified Issue Final Expense Standard Overview
The Lumico Simplified Issue Final Expense Standard Plan is a life insurance policy that provides basic coverage to individuals between 40 – 85 looking for an affordable way to help their loved ones pay for end-of-life expenses.
This plan includes an accelerated death benefit, accidental death, etc.
State Eligibility
The Lumico Simplified Issue Final Expense Standard Plan is available to individuals in all states except Montana and New York.
Age Eligibility
The Lumico Simplified Issue Final Expense Standard Plan is available to individuals between 40 and 85.
This makes it an excellent option for those seeking coverage but may not be eligible for traditional life insurance policies due to age or medical history.
Coverage Amounts
The Lumico Simplified Issue Final Expense Standard policy covers up to $30,000. This is a great option for those seeking protection against financial burden due to final expenses.
The coverage can be used toward funeral costs, hospital bills, outstanding debts, etc. With this policy in place, you can rest assured that your family will be cared for in the event of your death.
| Age | Coverage Amount |
|---|---|
| 50-85 | $5,000 - $30,000 |
Death Benefit Terms
As per the standard plan, death benefits to the policy beneficiary are provided if the insured passes away. The amount of coverage is stated on the Policy Schedule and is paid out in different percentages depending on when during the first three (3) policy years following the date of issue that the insured dies.
- If death occurs in the first policy year, 25% of the Coverage Amount is paid out.
- If death occurs in the second policy year, 50% of the Coverage Amount is paid out.
- If death occurs in the third policy year, 75% of the Coverage Amount is paid out.
Note that the waiting period for coverage is waived if death occurs due to an accident.
In this case, the full Coverage Amount is eligible for payment to the beneficiary at any time before the completion of policy year 3.
Cash Value
The cash value component allows policyholders to build savings and potentially borrow from the policy against their death benefit.
The cash value accumulates over time based on the premium payments and any additional deposits the policyholder makes. This money can be withdrawn or used to pay premiums if needed.
Available Riders
Like the preferred plan, Lumico offers two riders that provide additional protection.
They are the Accidental Death Rider and the Accelerated Death Benefit Rider.
Lumico Simplified Issue Final Expense Modified Overview
The modified plan is an excellent choice for those between 40 and 80. This type of life insurance allows individuals to purchase coverage quickly.
All in all, it’s an excellent option for those seeking a simplified process. With no medical exam required, the application is straightforward. With competitive premiums, the plan offers coverage for up to $15,000.
Regardless of how much or little you need in coverage, this life insurance plan has something that may fit your needs.
State Eligibility
It is available to individuals living in all states except Montana and New York.
Age Eligibility
Lumico’s modified plan is for those between 40 and 80. The application process is simple, allowing you to obtain coverage quickly.
Coverage Amounts
Lumico’s modified plan provides coverage of up to $15,000 with their simplified issue final expense life insurance policy.
This amount is considered a good maximum limit option for individuals looking for basic coverage and want to ensure a certain amount of money is available if they pass away.
| Age | Coverage Amount |
|---|---|
| 50-80 | $5,000 - $15,000 |
Death Benefit Terms
With Lumico’s modified plan, death benefits are designed to protect your loved ones. In the event of death, Lumico will pay out a percentage of the coverage amount, depending on when the policyholder dies.
Therefore, 10%, 25% and 50% of the face amount will be payable in years 1, 2 and 3 if death occurs within the first three policies, respectively.
Note: If death occurs due to an accident at any time before policy year 3, the full coverage amount will be payable.
Cash Value
Lumico Simplified Issue Final life insurance policies help build cash value. Cash value is a sum of money within the policy that increases over time and can be accessed for certain life events or used as an income stream during retirement.
The amount of cash value varies depending on your policy’s type and term length. It is important to note that policies with longer terms will accrue more cash value than those with shorter terms.
Furthermore, cash value accrues at a rate different from the death benefit payout; it may take more time to build up a larger sum of money in the policy, but this can be used as an investment for retirement or other goals.
Available Riders
As described in the Preferred and Standard plans, both riders are available for this plan.
Lumico Insurance Application Process
The application process for Lumico’s Simplified Issue Final Expense Life Insurance is easy. It takes only a few minutes to complete the process, and you don’t have to do a medical exam or provide any medical records.
The applicant must fill out an online questionnaire with their personal information, including their name, date of birth, address, occupational and contact information.
A valid driver’s license is also required for verification purposes. The last step is to sign an online consent form allowing Lumico to access your medical records from the Medical Information Bureau (MIB).
Once these steps are completed and accepted by Lumico, they will process the application within a few days.
If additional information is needed, Lumico will contact you to find out what it is and provide further details about their Simplified Issue Final Expense Life Insurance policy.
Once you receive approval for coverage, your policy can be issued immediately, and you’ll start receiving benefits soon after.
Lumico Simplified Issue Final Expense Application
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How Lumico Will Decide On Your Approval
Lumico will evaluate the underwriting requirements to come to a decision on each application which includes:
A review of the application disclosure, MIB, and prescription history. If any information is deemed incomplete or inconsistent with other data sources, the application will route to manual underwriting, where additional requirements may be requested.
Once all required information has been received, Lumico will decide on acceptance based on their guidelines.
If an application is denied based on the information provided, the rejection will be based solely on that information. It is important to note that Lumico does reserve the right to deny any application for any reason at its sole discretion.
Paying Your Premiums
Lumico offers two payment methods for customers to pay their premiums. Customers can use a credit card or enter their bank routing number to make payments on their policy.
The billing frequency can be set up on a monthly, quarterly, semi-annually and yearly basis.
Customers can also choose to pay their policy in full. Direct Express, EFT and debit cards are not accepted at this time.
If the customer chooses to pay the policy on a monthly basis, payments will be automatically withdrawn from their bank account or credit card on the same date every month.
If there is an issue with making a payment, the customer will be notified via mail.
Lumico Ratings & Customer Reviews
What Does The BBB Say About Lumico Life?
The Better Business Bureau (BBB) is an independent organization that provides ratings and reviews of businesses, non-profits, and charities in the United States. They give Lumico a rating of A+, indicating they are highly reliable and trustworthy. This reflects their commitment to providing excellent customer service.
Lumico Life A.M. Best Ratings
Lumico is rated by A.M. Best, a leading global credit rating agency that assigns financial strength ratings to insurance companies.
A.M. Best has assigned Lumico an “A” (Excellent) financial strength rating, which indicates that the company’s overall financial strength is excellent.
This rating indicates Lumico’s financial stability, meaning that customers can have confidence in investing in life insurance policies with the company.
With an A rating from A.M. Best, customers can have peace of mind knowing that their funds and investments are safe with Lumico.
Frequently Asked Questions
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Is Lumico a real insurance company?
Yes, Lumico is an insurance company with a long history of providing customers with competitive rates and quality coverage. They are backed by Swiss RE and have been in operation since 1865.
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How is Lumico insurance company rated?
Lumico is highly rated by both the A.M Best and Better Business Bureau (BBB). It has received an A+ rating from BBB, providing customers with strong assurance that their finances are in safe hands when dealing with Lumico.
The company also earned an A.M Rating of A, which signifies the insurer’s outstanding financial strength and ability to meet its obligations.
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Is Lumico final expense life insurance worth it?
Yes, Lumico’s final expense life insurance can be worthwhile, depending on your needs and circumstances.
As a simplified issue policy, it is designed to provide quick coverage with minimal paperwork and no medical exams required.
Its competitive rates, flexible policy options, and easy online application process make it attractive for many people looking for final expense coverage.
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How long has Lumico life insurance been in business?
Lumico has been providing life insurance solutions since 1865, over 150 years. It is one of America’s oldest and most established life insurance companies, with a heritage built on trust and reliability.
Lumico’s Simplified Issue Final Expense Life Insurance is designed to provide coverage for end-of-life expenses.
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Can I borrow money from my Lumico life insurance policy?
Yes, you can borrow money from your Lumico life policy. As you continue to pay premiums, cash value will accumulate in the policy’s savings component.
This cash value can be borrowed against and used for whatever purpose you desire, tax-free.
- Better Business Bureau. (n.d.). Business Profile Lumico Life Insurance Company
- Guide to Best's Financial Strength Ratings. (n.d.). AM Best
- Lumico Family of Insurance Companies. (n.d.). Final Expense Insurance
- Lumico Family of Insurance Companies. (n.d.). About Us
Rikin Shah
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Burial Insurance
15 companies competing for your business
97% of the time we beat Colonial Penn
30 days to get your money back, no questions asked
* Based on website quote requests, through 2/28/23.
(Check your rate to see their rates vs. ours)