Lumico

Life Insurance

LUMICO LIFE INSURANCE REVIEW 2020

By James Tobin, CFP®

Last Updated on

 

Lumico

Life Insurance

What Information are you seeking from this review?

I WANT TO KNOW  ABOUT LUMICO LIFE INSURANCE

 Show me the History,  products  offered, the financial ratings and the complaint index of Manhattan life.

OR

I NEED  ALTERNATIVES TO LUMICO FINAL EXPENSE 

 Show me  no  exam burial Life Insurance  options That Will  never expire and never increase rates.

OR

I WANT TO SEEALTERNATIVES TO LUMICO TERM  

 Show me highly rated  No Exam Term Life Insurance  options That Will  cover me until I retire or  longer.

Disclosure

Please note the Life Insurance Help Desk is not in any way affiliated with Lumico. This article is our personal review of the term life insurance product offered through Lumico as well as alternatives. If you are looking to contact Lumico directly, call them at 1-866-440-4047.If you are looking for a lost policy, contact the NAIC policy locator service  for help. 

COMPARE RATES INSTANTLY
  • Male Female
    Yes No

Lumico Life Insurance Carrier Specifics

Policy Options

Term, Whole Life

Term Lengths

10,15,20,30

Riders

Available

Ratings

"A" Rating From A.M. Best

States

Unavailable In The Following States:   CA, DC, DE, FL, ME, MT, ND, NY,  SD. 

Pricing

Term Insurance - Not Competitive

Burial Insurance - Product Specific

Customer Service

Issue Age

Term-18-70, Burial- 50-85

Min. Coverage

$5K - Burial, $100K-Term

No Exam Option

Yes

Expert Reviews from the life insurance help desk 

Jim Tobin promo

Reviewed by

Jim Tobin, CFP®

As seen in

Lumico Life Insurance Review 2020

Why you can Have confidence in this resource

At Life Insurance Help Desk, we value our editorial independence. We keep our reviews strictly factual so you can use them to make informed decisions. Life insurance carriers referred to on this site do not approve reviews. The views expressed are solely those of The Life Insurance Help Desk.

LUMICO Life Insurance is a member of the SwissRE financial services family.

This review will address company history, financial ratings, and the positives and negatives of the LUMICO Life Insurance. 

Additionally it will address some specific  situations where it may make more sense to go outside the LUMICO family of products. 

The goal is to make sure that you get the policy that provides you the most value.

LUMICO Life Insurance Company History

Founded in 1965  LUMICO Life Insurance  is a micro insurance carrier. LUMICO Life Insurance itself, accounts for approximately $18,000,000 a year in US premiums or well less than .01 % of the overall market.  

The LUMICO Life Insurance Company  was purchased in 2011 by SwissRe subsidiary iptiQ Americas.

Lumico has been aggressively growing in recent years and , in spite of a small market share , is fast becoming a recognized brand. 

Lumico is also part of the Medical supplement  market as well.

LUMICO Life Insurance Company Life Insurance Company Ratings

The  LUMICO Life Insurance Company company received a pretty good financial stability rating from AM Best. This indicates that the company is in good position to meet its obligations going forward. However, the carrier is not covered by the other agencies.  

Lumico A.M. Best  Rating

"A" Excellent

A.M. Best Company:   LUMICO Life Insurance Company company  rating given by A.M. Best was an A.

Moody's Ratings:  LUMICO Life Insurance Company  was not rated by Moody's. 

S&P Ratings:  LUMICO Life Insurance Company company was  not rated by S&P.

Comdex Score: n/a

Lumico Life Insurance Product Review

LUMICO Customer Service

The National Association of Insurance Commissioners reports a complaint index of 15.48 for Lumico (2018) . This is well above the national average of 1 percent. This is a RED FLAG. 

Additionally, while life of Lumico life Insurance is not rated by JD Power & Assoc., it's  has a BBB rating of B.

Lumico Life Insurance Contact Info:

Address:P.O. Box 83303
Lincoln, NE 68501

Phone:(866) 440-4047

Web:https://www.lumico.com

LUMICO Term Insurance 

LUMICO offers traditional term insurance. terms of 10,15,20 and 30 years are available. However, any conversion privileges are limited as their permanent product lineup is thin. 

The term insurance offered is 'no exam" and thus, quick and convenient.

Underwriting (based on your prescription history and public data) is thought to be stricter than many of the major carriers.  

LUMICO Life Insurance Company Rates

LUMICO Life Insurance Company company  markets it's products directly though Lumico/Assurance agents.

Because LUMICO is not carried by independents at this time , you will need to go to the the LUMICO  web site and contact an agent to get a real quote. Rates are available at their instalife quote tool.

Are Lumico term Life Insurance rates competitive?

Not in our experience.

While it's hard to say without inputing every scenerio into their quote tool, it is not likely. The unwillingness to allow independent quote tools to include LUMICO is a clue that they don't want to be "shopped".

Furthermore, the ages and health ratings we sampled showed Lumico to be almost  50% more than the best priced alternatives. See examples below.

53 Year Old Male Prefered Plus Health rating  seeking $250K for a 20 Year  Term

PRINCIPAL

$52.43/mo.

PROTECTIVE

$50.53/mo.

LINCOLN

$53.47/mo.

AIG

$54.18/mo.

LUMICO

$72.08/mo.

47 Year Old Female Prefered Plus Health rating  seeking $200K for a 30 Year  Term

PRINCIPAL

$57.15/mo.

BANNER

$67.77/mo.

PROTECTIVE

$67.41/mo.

FORESTERS

$69.65/mo.

LUMICO

$104.00/mo.

Because  LUMICO Life Insurance Company does not make it easy for the public to compare rate information, it is difficult to make apples to apples comparisons.  

However, it has been our experience that companies (even good ones), that are not convenient with pricing, are seldom the price leaders. 

With few exceptions, the best priced carriers are willing and, in fact, eager to be compared with other carriers. Example of "price busters" are Banner Life and Protective Life.

Carriers that may cost more but are more lenient in underwriting are Prudential and Mutual of Omaha.

LUMICO Life Insurance Suicide Exclusions

The 2 year suicide clause that is part of all life insurance policies in the United States, is the same. (Note that some states use a 1 year exclusion)  

Cases Where Lumico Term Life Insurance Company Is Not A Great Choice

To be perfectly frank, it's hard to find a situation where LUMICO would be a great fit. The convenience factor of not needing a medical exam is available with more transparently available carriers.  

If you have a specific condition, you are best off speaking with an independent agent to find out which carrier will give you the best chance to get approved at a great rate.  

After all, different carriers have differing risk appetites for YOUR condition.

That being said, if you are using LUMICO for other financial services, like medicare supplements, and you find that the rate being offered is competitive,  it may make sense to keep everything in house.   

Lumico Burial Insurance Review

Lumico's burial or "final expense product is simple with a ppaperless application and immediate underwriting anwer. There are no medical exams and the policy can be applied for over the phone.

As with all whole life products, the policy will never expire, the rtaes will not increase and the benefit cannot decrease. Speaking of the death benefit, like all personal life insurance, is paid out tax free.

Lumico offers three grades of policy PreferredStandard and Modified.  Let's go over them one by one.

LUMICO Burial Insurance Classes

Preferred Class

  • Ages Offered- 50-85
  • Death Benefit- 5K- 30K
  • Payout schedule- Immediate with no waiting period

Standard Class

  • Ages Offered- 50-85
  • Death Benefit- 5K- 30K
  • Payout schedule- Before Year 1 - 25%, After Year 1- 50%, After 2 - 75%, After Year 3 -100% Thats a 3 year wait to be elligible for the entire benefit!

Choosing a policy with a 3 year waiting period on a stadard  burial class is a bad idea.  There are several alternative companies that will not make you wait to be elligible for the full benefit.

Modifed Class

  • Ages Offered- 50-80
  • Death Benefit- 5K- 15K
  • Payout schedule- Before Year 1 Anniversary - 10%,  After year 1- 25%, After Year 2 - 50%, After Year 3 -100% Again! Thats a 3 year wait to be elligible for the entire benefit!

Waiting periods are common with graded or modified policies. However, even in this case, LUMICO is less generous than most carriers. The reality is that in many cases, a guaranteed issue policy may be a better deal.

LUMICO Burial insurance underwriting

    Like nearly all burial or final expense insurers,  medical exam is not required to qualify. In fact the carriers (Lumico included) make a nearly instant decision based on 3 things:

    • Your answers in the application
    • Your prescription history
    • Your Medical Information Bureau file

    It is important to be honest, as discrepancies between your answers and your MIB report or your prescription history are generally not decided in the applicants favor. This means if you take an off-label medication, you need to be clear about what the use of the medication is being used to treat.

    Assuming that the MIB and prescript check are consistent, the decisiom will be based on your answers to application questions. The LUMICO policies have 2 "knock-out" questions. If you answer yes to either of these you will not be elligible. The questions are:

  • Are you currently hospitalized, requiring nursing home care, confined to a bed, or receiving hospice care?
  • Do you have a terminal condition (terminal condition means a medical condition resulting from injury or illness that is reasonably expected to result in the death of the Insured within 12 months or less)?
  • Beyond the "knockout questions, LUMICO's application features 2 sets of questions . If you answer No to all the questions, you will be offered a preferred plan.

    If you answer YES to any of the 1st set of questions you will be offered a Standard plan. These questions center around major health (and driving) issues in the lasy 24 months.

    If you answer YES to any of the next set of questions you will be offered a Modified plan.   These questions focus on the last 12 months and activities of daily living (ADL). 

Lumico Burial Insurance Application Questions

Knockout Questions

  • Are you currently hospitalized, requiring nursing home care, confined to a bed, or receiving hospice care?
  • Do you have a terminal condition (terminal condition means a medical condition resulting from injury or illness that is reasonably expected to result in the death of the Insured within 12 months or less)?

STANDARD POLICY: 

  • Were you diagnosed with Parkinson’s disease? Are you suffering from permanent paralysis from any disease?
  • In the previous 24 months did you have a diagnosis for any circulatory disorder such as aneurysm, heart attack, TIA attack, stroke, internal cancer, leukemia, melanoma, kidney disease, connective tissue disorder, neuromuscular disorder such as muscular dystrophy, multiple sclerosis, cerebral palsy, etc), Crohn’s disease, ulcerative colitis, any psychiatric issues that needs treatment?
  • In the past 24 months, did you have more than 4 moving violations? Did you have a DUI conviction more than once? Have you been advised to seek alcohol or drug abuse treatment? Do you have a felony conviction, incarceration, probation or parole?

MODIFIED PLAN:

  • Do you use supplementary oxygen for lung and respiratory issues?
  • Do you need hospitalizations or surgeries? Do you have diagnostic tests, that haven’t been completed yet and the results are unknown?
  • Are you requiring help in performing any daily living activities (eating, bathing, dressing, toileting, transferring, and continence)?
  • Do you have an organ or bone marrow transplant, cardiomyopathy or congestive heart failure, mental incapacity, dementia, or Alzheimer’s disease, ALS, dialysis, HIV or AIDS?
  • Do you have diabetes diagnosis before age 40?
  • Any diabetic complications resulting in heart or circulatory conditions?
  • In the last 12 months, have you been treated for a TIA attack, stroke, heart valve disorder, heart attack or heart blockage, any form of cancer, melanoma, lymphoma, leukemia, or systemic lupus, lung disease (does not include mild asthma)?

No answers to all questions will be offered a Preferred Policy

Yes to standard questions but not modified questions will result in a standad offer.

Yes to any modified questions will result in a madified offer.

LUMICO Burial insurance rates - Are Lumico  final exoense policies expensive?

This is a mixed bag.

The preferred product is priced well. If not for the customer complaint index, it would be easy to recommend this product. It is priced in the same neighborhood as competitors like  Mutual of Omaha, Liberty Bankers and Royal Neighbors. 

Any reasonable analysis of the standard and modified plans would rule them out before even looking at the pricing tables. This, of course, is due to the uncompetitive  waiting periods.

Below we have compared Lumico preferred pricing with market leaders. 

63 Year Old Male Prefered Plan   Seeking $10K Burial Policy

FORESTERS LIFE

$51.52/mo.

MUTUAL OMAHA

$51.22/mo.

LIBERTY BANKERS

$52.09/mo.

TRINITY  LIFE

$48.68/mo.

LUMICO LIFE

$52.28/mo.

67 Year Old Female Prefered Plan   Seeking $10K Burial Policy

MUTUAL OMAHA

$45.86/mo.

FORESTERS LIFE

$45.37/mo.

LIBERTY BANKERS

$47.84/mo.

SENTINEL  LIFE

$46.10/mo.

LUMICO LIFE

$46.96/mo.

As you can see, the preferred product is in the ballpark. Nonetheless we have reservations related to the NAIC complaint index referrenced earlier. 

Situations where Lumico Burial insurance is not a good idea?

While we have reservations about LUMICO in general, due to the outsized consumer complaint index, we strongly recomend that you seek alternatives when offered a standard burial or modified burial policy

The waiting period required on the Standard burial product  is a terrible burden that is not required at other carriers.

The waiting period  termson the modified plan is uncompetitive with the rest of the marketplace. 

Other Lumico  Life Insurance company Products

Lumico  is primarily a term insurance and final expense company on the life insurance side and a med supplement carrier on the health side.

Final expense insurance is generally in the form of a small whole life policy meant to cover burial costs.

Medicare supplement insurance is meant to cover medicare copays and is very popular with more affluent seniors.

Lumico Life Insurance Review 2020
COMPARE RATES INSTANTLY
  • Male Female
    Yes No

The LUMICO Life Insurance Review Final Verdict

Is LUMICO right for you?It really all depends on your situation.

If you have notable health impairment(s), you will likely be better suited by shopping around on the open market where it is convenient to make apples to apple comparisons. 

Moreover, having the use of an independent expert who can send your application to a carrier that is likely to view you in the best possible light has value that LUMICO can't offer.

However, if you happy with other services being being provided by LUMICO and in good health and require their products, it may be convenient to keep things "in house".  

Thank you for choosing the Life Insurance Help Desk to shop for life insurance.

Bonus: The most common mistakes people make buying life insurance and how to avoid them

(Click Twice)

The Time to get covered is now!...

See just how easy buying life insurance can be....compare accurate life insurance rates in just seconds.

__CONFIG_colors_palette__{"active_palette":0,"config":{"colors":{"62516":{"name":"Main Accent","parent":-1}},"gradients":[]},"palettes":[{"name":"Default Palette","value":{"colors":{"62516":{"val":"rgb(5, 5, 65)","hsl":{"h":240,"s":0.86,"l":0.14}}},"gradients":[]}}]}__CONFIG_colors_palette__
Get Started Now