Lumico Life Insurance Company

Lumico Life Insurance

Lumico Life Insurance company was founded in 1965 under the name of “Generation Life Insurance Company”. During the recent years; Lumico was renamed as a part of its rebranding regime. Lumico headquarters are located in Lincoln, Nebraska.

Lumico offers three types of life insurance policies. It offers Term life, Whole life and Burial Insurance policies. Lumico has some features which are extremely different from regular life insurance agencies. It is an average firm; you shall remember that “Insure Guardian” does not include Lumico in one of its top recommendations.

Here are the reasons why it is an average life insurance agency:

  1. What are the benefits of Lumico?
  2. What are the let-downs of Lumico?
  3. What types of policies does Lumico offer?
  4. How much does Lumico Life Insurance Policy cost?

What are the benefits of Lumico?

There are many pros such as:

  • Many riders are available with Lumico’s life insurance policies:

Lumico offers a number of riders and add-ons to aid the buyers. It has long-term care insurance riders, terminal illness riders for free, accidental death riders, and accelerated death benefits riders.

  • No Medical Test

Most applicants do not have to undergo any medical test for qualifying with their life insurance application with Lumico. After answering some health questions, Lumico allows you to buy its life insurance policies quickly.

  • Availability in all states of US

Lumico offers a variety of its life insurance policies in all states except for New Jersey and Washington DC.

What are the let-downs of Lumico?

  • Term Life policies are not convertible

Lumico offers good term life policies which can be renewed with annual renewable term life policy after expiry. But it does not let you convert your term life into any permanent whole life policy.

  • Waiting period is of 3 years for Guaranteed Acceptance Burial Insurance

Lumico’s burial insurance comes with a 3 years’ waiting period instead of the normal 2 years waiting period. If the policyholder passes away in this time, he gets a refund of premiums and interest, not the death benefit.

  • A lot of Customer Complaints according to NAIC

According to the data of NAIC National Association of Insurance Commissioners; Lumico has a large number of client complaints. It does not offer customer satisfaction or a good experience generally.

  • Only One-Million-Dollar highest coverage

Lastly, Lumico does not offer term life or whole life policy which exceeds one-million-dollar coverage. This is not enough coverage for many people who have outstanding loans and college going kids.

However, Lumico enjoys a good rapport with the ratings companies due to its financial stability. It is AM Best A+ Ratings life insurance company. It can and does pay well to its policyholders’ life insurance claims, down the road. But the biggest turn off is the client complaints.

What types of policies does Lumico offer?

Lumico Life Insurance Company offers term life, whole life, and burial insurance. Lumico has an advantage of approving the applications instantly without a medical test. It offers a quick coverage and approval process with a few health related questions.

Term Life Insurance Policy

It offers term life for 10, 15, 20 or 30 years. Level premiums are offered. If the policyholder expires in his term, his beneficiaries receive a full death benefit payout after claim approval. The death benefit payout is tax-free lump-sum cash.

The turn off is that Lumico’s term life policies are not convertible to whole life or any other permanent life insurance policies. Only way to renew after your term expires, is to annually renew your policy with higher premiums every year.

Whole Life Insurance Policy

Whole life lasts a lifetime, offering full death benefit to beneficiaries’ after your death. Lumico’s whole life offers a cash value which gets accumulated with fixed 10% interest till the policyholder’s death. You can borrow or withdraw loans from cash value while you’re still alive.

Burial Insurance

You have to be older than 45 years old, without a medical exam you can buy both simplified issue or guaranteed acceptance burial insurance policies of Lumico. Lumico offers a 3 years’ waiting period on its guaranteed acceptance.

Coverage limit for its burial insurance is $30,000. The riders that Lumico offers for all its life insurance policies include: Child Term Rider, Waiver of Premium Rider, Accidental Death Benefit Rider, and a Terminal Illness Rider.

How much does Lumico Life Insurance Policy cost?

The rates depend upon the following:

  • Age of policyholder
  • Gender of policyholder
  • Lifestyle of policyholder
  • Medical history of policyholder
  • Tobacco usage history of policyholder
  • Medical history of the family of policyholder
  • Type of policy and its coverage chosen by the policyholder
  • Occupation of policyholder
  • Hobbies of policyholder

If you are an applicant who is under the classification of “preferred” or “preferred plus”; you’ll get lower rates and premiums, for Lumico Life Insurance Payment.

Bottom line

In a nutshell; Lumico Life Insurance Company is a legitimate life insurance company which has been around since 1965. The best-selling points include no-medical test for all policies, and quickest approval compared to competitors. The worst points are no-conversion term life policies, only one-million-dollar coverage limit, 3 years’ waiting period for burial insurance, and lots of clients’ complaints.

To find the right fit for your life insurance needs with Lumico Life Insurance Company, consult an independent insurance agent from NAPFA, National Association of Personal Financial Advisors; for seeking professional counsel! Click here to get a quote from Insure Guardian!