Lemonade Life Insurance Review 2024 (2024)

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Lemonade is a relatively new insurance provider that began operating in 2015. It offers homeowners, renters, auto, pet and term life insurance products with an emphasis on providing a streamlined digital experience. The company largely handles customer communication through its mobile app and its chatbot, Maya. Policyholders can use the customer portal or Lemonade app to view policy details, add or edit beneficiaries and more.

Lemonade also stands out for its charitable business model. It is a public-benefit corporation and a Certified B Corp. The company’s Giveback program lets policyholders choose a nonprofit to donate a portion of their unused premiums, but it’s important to note that life insurance products are not eligible for the Giveback program.

Lemonade doesn’t underwrite its own life insurance policies but instead acts as a sub-agent for Bestow Insurance^®. Bestow is a broker that offers policies issued by North American Company for Life and Health. North American holds an A+ financial strength rating with AM Best, so you don’t have to worry about the staying power of the carrier backing your insurance policy.

Since it’s a newer company, Lemonade is still expanding its policy availability and not all insurance lines are available in all states. Its term life insurance coverage, in particular, is available in every state except New York, where Lemonade says it’s coming soon.

A life insurance policy provides a death benefit to your specified beneficiaries if you die while the policy is active. In exchange for accepting the risk of paying a death benefit, insurers require policyholders to pay regular premiums. Life insurance coverage can lapse if you don’t pay your policy’s premiums or if your policy term ends.

Lemonade offers a type of life insurance known as term life insurance.

Term Life Insurance

Term life insurance provides coverage for a limited amount of time, known as a term. Typically, terms range from 10 to 30 years and premiums remain level during that time.

When a term ends, you might be able to renew your policy annually for increased premiums, convert it to a permanent life policy, apply for a new policy or simply let the coverage expire. However, Lemonade does not offer policy renewals or conversions to permanent policies.

Term life insurance is designed to cover you during the years when you’re likely to have significant investments, like a mortgage, college loans for your kids or an income your family relies on. Term life insurance is generally more affordable than whole life insurance, which can provide permanent coverage throughout your entire life and includes a cash value component.

Lemonade offers only one term life insurance policy. Here’s what you need to know about it:

• The policy offers coverage amounts of up to $1.5 million to applicants ages 18 to 60.
• You can choose term lengths from 10 to 30 years in five-year increments, making for five term options overall.
• Premiums are level for the full term period, meaning they’ll stay the same.
• The policy is not renewable, nor is it convertible to permanent life insurance.
• Lemonade does not offer life insurance riders or endorsem*nts.
• Customers can apply for a policy within minutes without leaving Lemonade’s website.
• Insurance rates and approvals are based on answers to health and lifestyle questions — no medical exam is required.

The cost of a term life policy with Lemonade depends on policy details like the coverage limits and term length you select. For example, a 30-year policy for a coverage amount of $1.5 million will be more expensive than $500,000 of coverage for a 10-year term.

Although Lemonade’s application process doesn’t require a medical exam, the process does include questions about your medical history and lifestyle to determine your rates and coverage eligibility. For example, someone with a history of heart disease could be rejected due to increased risk.

Some factors that could affect your life insurance premiums include your:

• Age
• Gender
• Health
• Pre-existing or chronic conditions
• Lifestyle
• Dangerous hobbies
• Driving record
• Location

The best way to find out how much a term life policy with Lemonade would cost for you is to get a free quote online. The company requires you to provide your social security number before it displays premium quotes, which is standard practice in the industry. Lemonade advertises $9 per month as its lowest possible cost for coverage.

We read more than 100 consumer reviews on aggregators like ConsumerAffairs and the Better Business Bureau (BBB) for each life insurance provider we review. This helps us understand the overall consumer sentiment toward the company.

While most online consumer reviews of Lemonade comment on its other products, such as auto, pet and homeowners insurance, we analyzed more than 50 reviews focusing on its life insurance offering.

Most of these reviews were positive and largely praised Lemonade’s easy and convenient application process. Other customers noted they were happy to get coverage without being subjected to a medical exam.

“Excellent experience. I started down the path to getting insurance several times but never pushed [through] because of the hassle factor. With Lemonade, I went from needing a policy to having a policy in five minutes. I totally recommend lemonade for your insurance needs.”

– Justin, via ConsumerAffairs

“The application process was so streamlined! Amazing experience. I was replacing a policy and was so glad that I didn’t have to take time off of work just to get a blood draw for a life insurance policy. Best experience ever!”

– Emma R., via ConsumerAffairs

As with anything, not all reviews were glowing. Some policyholders had a poor experience with Lemonade’s communication, which mostly relies on the app and email.

“[Lemonade] sends sensitive documents containing social security numbers, birthdates, etc. on unsecured email correspondence. When I notified their team, they ignored me. As a result, I still have unprocessed beneficiary documents. Terrible practices that require outside oversight, as this company simply ignores its obligations to do the right thing.”

– Mark, via ConsumerAffairs

“I have been trying to get my beneficiary updated on the policy, and it has not been done. I have asked for a callback [but haven’t received one]. My beneficiary is correct online but not on the policy form.”

– Amy, via ConsumerAffairs

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If you’re looking for term life insurance coverage without taking a medical exam, Lemonade is a top choice. Its policies are issued by North American, a reputable life insurance carrier, and it allows you to review your policy for up to 30 days with a money-back guarantee.

However, Lemonade doesn’t offer whole life or other permanent life insurance types. Its term policy doesn’t offer any riders, such as living benefits, and isn’t convertible when the term expires. If accruing cash value is a priority, Lemonade might not be the best fit.

Choosing a life insurance policy is an important decision and no single policy will be right for every person or situation. We recommend getting at least three life insurance quotes before deciding on a provider.

Methodology: Our System for Ranking Life Insurance Companies

Our team researches and ranks life insurance companies using an in-depth scoring system that considers the factors most important to consumers like you. Our analysis includes a comprehensive review of each provider we feature based on available coverage, customizability, availability, customer service and company reputation. Here are the factors we take into consideration when rating life insurance providers:

• Brand trust (40%): Life insurance payouts can exceed $100,000 or more, which makes choosing a reputable and trustworthy insurance provider important. To assess brand trust, we use J.D. Power and Associates customer satisfaction surveys, AM Best credit rating scores and the National Association of Insurance Commissioners (NAIC) complaint index. The higher a company scores in each area, the more points it receives.
• Coverage (33%): The more policy options a life insurance company offers, the more opportunities you have to obtain the right coverage for your specific needs. For this reason, we give companies the most points for offering multiple types of life insurance, including various term, permanent and no-exam options.
• Availability and ease of use (19%): Since life insurance coverage options can be complex, we consider the ways a customer can reach a company — and how easy communication is. For this category, we research how many communication channels a company offers for general customer support, claims processing and the application process. Companies earn the most points for offering various ways to interact with an agent, both in-person and online.
• Riders (8%): Companies offering various life insurance riders or endorsem*nts allow policyholders to better customize their coverage. In this category, we determine how many riders a company offers and award the most points to providers with more than 10 options.

We use our rating system to compare and contrast each company against key factors to help us determine the best life insurance companies in the industry. To learn more, read ourfull life insurance methodologyfor reviewing and scoring providers.AM Best Disclaimer

Lemonade Life Insurance Agency is a sub-producer of Bestow Agency, LLC. Life insurance quotes provided by Bestow Agency, LLC dba Bestow Insurance Services in CA, who is the licensed agent. Term Life Insurance Policies offered by Bestow are issued on policy form LS181 and LS182, or state version including all applicable endorsem*nts and riders, by North American Company for Life and Health Insurance®, West Des Moines, IA. Products or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply. Not available in New York. North American is rated A+ (Superior) by A.M. Best. Limitations or restrictions may apply. A+ (Superior), the second highest rating out of 15 categories, was affirmed by A.M. Best for North American Company for Life and Health Insurance as part of Sammons Financial Group on July 29, 2022. A.M. Best is a large third party independent reporting and rating company that rates an insurance company on the basis of the company’s financial strength, operating performance and ability to meet its ongoing obligations to policyholders. Our application asks about your lifestyle and health to determine eligibility in order to avoid requiring a medical exam.