Lumico Life Insurance: Ambest's Top-Rated Coverage Options

Lumico Life Insurance Company offers term and whole life policies, as well as insurance to cover final expenses. The company was founded in 1965 and has been increasing its market presence in recent years. It takes a modern approach to life insurance, focusing on a streamlined application process and affordable rates. Lumico is currently based in Lincoln, Nebraska, and is owned by Swiss Re, a large reinsurance company headquartered in Zurich, Switzerland. Lumico's term life insurance policies are available for 10, 15, 20, or 30 years, with death benefits of up to $1 million. Their whole life insurance policies also offer death benefits of up to $1 million, with a cash value component that grows each year. Lumico has received an A rating for financial strength from A.M. Best, indicating excellent financial stability. However, their customer service has received mixed reviews, with a higher-than-average complaint ratio and a 'B' rating from the Better Business Bureau.

Lumico's life insurance products

Lumico Life Insurance Company offers a range of life insurance products to meet multiple needs. The company was founded in 1965 and has been increasing its market presence in recent years. Here is an overview of Lumico's life insurance products:

Term Life Insurance

Term life insurance is a type of coverage that lasts for a specific period, known as the term. Lumico's term life insurance policies are available for 10, 15, 20, or 30 years, with fixed monthly premiums and coverage of up to $1 million. These policies are more economical than whole life insurance and are ideal for covering specific expenses such as mortgages, student loans, or education costs.

Whole Life Insurance

Whole life insurance provides coverage for an individual's entire lifetime. It is a straightforward option with level premiums that grow in cash value each year. Policyholders can access the cash value throughout their lives. Lumico offers whole life insurance with coverage of up to $1 million. The cash value accumulation results in significantly higher premiums. When the policyholder dies, the beneficiaries receive the benefit as tax-free federal income.

Final Expense Insurance

Final expense insurance is designed to cover funeral costs and other end-of-life expenses. It offers death benefits of up to $50,000 and does not typically require a medical examination, making it accessible and affordable for seniors or people with chronic health conditions. Lumico's final expense insurance comes in three forms: Preferred, Standard, and Modified, with varying age ranges and coverage amounts.

Medicare Supplement Insurance

Medicare supplement insurance is offered by Lumico for individuals aged 65 and older. It complements existing health coverage and allows policyholders to choose their providers. Lumico's Medigap insurance has a straightforward application process and does not require a medical examination. The plans are renewable annually, and Lumico works with policyholders to ensure the coverage fits their budget.

Life Insurance Riders

In addition to the core life insurance products, Lumico offers several riders that can enhance coverage:

• Accelerated death benefit: Allows policyholders to withdraw a portion of the policy's face value if diagnosed with a terminal illness.
• Accidental death: Pays additional money to beneficiaries if the insured passes away due to an accident.
• Waiver of premium: Eliminates monthly premium payments if the insured becomes totally and permanently disabled.
• Child rider: Provides limited life insurance coverage for children until they reach the age of 18.

Financial strength and ratings

Lumico Life Insurance Company is a provider of term and whole life policies, as well as insurance to cover final expenses. The company was founded in 1965 and has experienced steady growth since then. In 2018, Lumico Life had total assets of over $60 million, a net surplus of more than $43 million, and an asset-to-liability ratio of 4.26.

The renowned credit rating agency, A.M. Best, gave Lumico Life an "A" rating for financial strength, which is the third-highest possible score and is synonymous with "excellent". This indicates that policyholders can reasonably expect Lumico Life to meet its insurance obligations comfortably.

In May 2024, AM Best downgraded the Long-Term Issuer Credit Rating of Lumico Life Insurance Group (which includes Lumico Life Insurance Company) from "a+" to "a". However, it affirmed the Financial Strength Rating of A (Excellent). The ratings reflect Lumico Life Insurance Group's very strong balance sheet strength, marginal operating performance, limited business profile, and appropriate enterprise risk management.

Swiss Re, a large reinsurance company, provides steady financial backing for Lumico Life, further bolstering its financial health. Lumico Life's parent company, iptiQ Americas, Inc., is a part of the Global Fortune 500 reinsurer Swiss Re. This strong financial backing provides credibility to Lumico Life's economic strength.

While Lumico Life's financial strength is a positive aspect, the company has received a "B" rating from the Better Business Bureau (BBB). Additionally, Lumico Life's customer service has been reported to be less than perfect, with a higher-than-average complaint ratio.

Pros and cons of Lumico's life insurance policies

Lumico is a life insurance company that aims to simplify the process of buying life insurance. They offer a limited number of policies, including term life, whole life, and final expense insurance, as well as Medicare supplement insurance. Here is a detailed look at the pros and cons of Lumico's life insurance policies.

Pros:

• Easy decision-making: Lumico offers a small selection of simple and easy-to-understand policies, making it easier for customers to choose the right option for their needs.
• No medical exam: Lumico does not require a physical or medical examination for approval. Instead, underwriting is based on a health questionnaire and other records.
• Simple application: Lumico's application process is short and straightforward, reducing the risk of errors that could delay future claims.
• Financial soundness: Lumico is financially stable and has an "A" rating for financial strength from A.M. Best, indicating that they can comfortably meet their insurance obligations.
• Widely available: Lumico is licensed to sell life insurance in most U.S. states, except California, Montana, North Dakota, South Dakota, Florida, Delaware, New York, and Maine.
• Online quote option: Lumico provides an instant online quote option, making it convenient for customers to compare their rates with other companies.

Cons:

• Limited choice: While Lumico's limited selection of policies makes decision-making easier, it may not offer a policy that perfectly fits the unique needs of every customer.
• No online buying: Lumico insurance can only be purchased through a local agent, and finding one to contact directly can be challenging. Customers need to complete a free quote request and wait to be contacted.
• Customer service: Lumico has a higher-than-average complaint ratio, indicating that they receive more complaints per policy than comparable companies. Their 'B' rating from the Better Business Bureau (BBB) suggests that they may not provide the best customer service experience.
• Pricing: Lumico does not offer much public pricing information on their website, making it difficult to compare pricing with other companies. While they advertise their products as affordable, their prices are often reported to be higher than average.

Lumico's customer service

Lumico Life Insurance offers a range of insurance products, including term life, whole life, final expense, and Medicare supplement insurance. The company aims to simplify the process of buying life insurance, providing straightforward solutions with a focus on affordability.

Customer Service

The company has a higher-than-average complaint ratio, indicating that they receive more complaints per policy than comparable life insurance companies. They also have a 'B' rating from the Better Business Bureau (BBB). This suggests that Lumico's customer service may not be the best in the market.

Pros and Cons

Pros

• Simple and accessible policies, with a limited number of products to choose from, making decision-making easier.
• No medical exam required for some policies, making it a good option for those who might struggle to find affordable insurance.
• Financially stable, with an 'A' rating from AM Best, indicating excellent financial strength.
• Widely available, licensed to sell insurance in most US states.
• Online quote option available.

Cons

• Less than perfect customer reviews, with a higher number of complaints than average.
• Limited product range, which may not offer the perfect fit for everyone's needs.
• No easy way to request a quote through the website.
• Pricing is reported to be higher than average, and Lumico does not provide much public pricing information, making comparisons difficult.

Lumico's pricing

Lumico offers a range of insurance products, including term life, whole life, and final expense insurance, as well as Medicare Supplement (Medigap) plans. While the company does not disclose its pricing on its website, I was able to gather some information on the factors that influence the cost of their policies.

Term Life Insurance:

Lumico's term life insurance policies can provide coverage of up to $1 million, with terms ranging from 10 to 30 years. The premiums for these policies are level, which means they remain the same throughout the duration of the policy. This provides stability and peace of mind, as policyholders don't have to worry about inflation or unexpected spikes in price.

Final Expense Insurance:

Lumico offers three types of final expense insurance: Preferred, Standard, and Modified. The Preferred option has a face value between $5,000 and $30,000 and is available for individuals aged 50 to 85. One advantage of this plan is the immediate payout. The Standard option offers similar coverage but with an incremental payout, where beneficiaries receive approximately 25% of the benefit over four years. The Modified plan is available to individuals aged 50 to 70 and provides coverage ranging from $5,000 to $15,000, with a staggered payout system similar to the Standard plan. The cost of final expense insurance depends on factors such as age, health, and sex.

Whole Life Insurance:

Whole life insurance, also known as permanent insurance, offers lifetime coverage with level premiums and increasing cash value. Policyholders can access the cash value during their lifetime, and beneficiaries receive the benefit as tax-free federal income upon the policyholder's death. Lumico provides up to $1 million in coverage for whole life insurance policies. The accumulation of cash value results in significantly higher premiums compared to term life insurance.

Medicare Supplement Insurance:

Lumico's Medicare Supplement Insurance, also known as Medigap, is available for individuals aged 65 and older. It complements existing health coverage and allows policyholders to choose their preferred providers. Lumico's Medigap plans have a straightforward application process and do not require a medical examination. The plans are renewable annually, and Lumico works with policyholders to ensure the coverage fits within their budget.

While Lumico does not disclose specific pricing information, their focus on providing straightforward solutions and affordable prices suggests that their rates may be competitive within the industry. It is always recommended to contact the company directly or request a quote to obtain accurate and personalized pricing information for their insurance products.

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