Lemonade Life Insurance Review

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Contributor, Benzinga
December 14, 2022
Lemonade Life
Overall Rating:
securely through Lemonade Life's website

Lemonade is an InsurTech company that’s made waves with its homeowners, renters and pet insurance. Now, Lemonade is offering digital term life insurance. Lemonade offers a range of term life insurance coverage and term options that you can apply for online with no medical exam. Lemonade offers term lengths of 10, 15, 20, 25, and 30-years and coverage amounts from $50,000-$1.5 million. If you prefer buying insurance online and want it to be a quick and easy process, Lemonade could be the right choice for you. Learn more in this Lemonade life review.

Best For
  • Generally healthy people between 18 and 60 years old
  • People who are comfortable buying policies online
  • People who qualify for insurance coverage without a medical exam
Pros
  • No medical exams required
  • Fast application process
  • Variety of term options
Cons
  • Not available to those age 61 or older
  • Only offers term life insurance

Lemonade Life Ratings at a Glance

Coverage Options
Pricing
Mobile App
User Benefits
User Experience 5 Stars
Lemonade Customer Service
Lemonade Claims Process
Lemonade Term Life Insurance Overall Rating

Lemonade exclusively offers term life insurance. If approved, this type of insurance has the same premium (monthly payment) and coverage amount for the entire term. It doesn’t build any cash value like permanent life insurance. Still, if your claim is approved, it will pay your beneficiaries a benefit if you die while the policy is in force, which is the primary purpose of term life insurance protection. 

Term insurance is also less expensive than whole life insurance, which means you can buy more coverage for less money. This is helpful if you need a significant amount of coverage to pay off a home and fund child care and college education if you were to die unexpectedly while the policy was active. This level of income protection supports spouses, dependent children and other named beneficiaries.

Lemonade Life Coverage Options

  • Lemonade Life
    Best For:
    Online coverage
    securely through Lemonade Life's website

    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 endorsements and riders, by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Products or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply. Not available in New York. The application asks about your lifestyle and health to avoid requiring a medical exam.

Lemonade offers 10, 15, 20, 25, and 30 year term options. If your policy expires, you will have to reapply for coverage as the policies are not renewable. Financial professionals recommend life insurance plans for your financial protection, but remember that you can also improve your financial strength when purchasing the right coverage.

No Medical Exam Life Insurance

Lemonade Life offers life insurance that does not require a medical exam. This feature is unique because many insurers do require the insured person to undergo a medical exam before a life insurance policy can be purchased. Instead, all Lemonade asks you to do is chat with its online bot, Maya, about your health and lifestyle. This information can be used to determine the coverage and premium amounts that you qualify for.

Lemonade Life Pricing

Lemonade Life’s term life insurance policies start at $9/mo. The cost for each person’s policy depends on several factors, including the term length and coverage amount that you choose. The pricing for each policy also depends on personal factors, such as your age, health background, lifestyle and location.

Term life insurance is an affordable insurance option, and you can tailor a policy to fit your budget by adjusting the term period and the coverage amount of the policy. The term is how long the policy will last and the coverage amount is also called the death benefit. A shorter term period will probably be less expensive than a longer term period. Similarly, a lower coverage amount will be cheaper than a higher coverage amount. 

Mobile App

Lemonade’s mobile app is visually appealing and works very well. When you download the app, you’ll be given a few screens of information to swipe through. Then, you’re prompted to “check prices.” After entering your name and email address, you’ll enter a conversation with Maya, Lemonade’s virtual assistant. From there, you can start applying for a Lemonade Life policy in just a few clicks. According to Maya, the process takes about 5 minutes. 

If you’re a customer, you can also log in and use the app to manage your policy.

User Benefits

Lemonade Life is a convenient life insurance option that makes finding and purchasing a policy as easy as possible. Some of the greatest benefits include:

  • Quick application and approval process
  • Fully digital experience
  • No medical exam required

Lemonade also considers itself a customer-centric company. It allows you to cancel your policy at any time with no penalty. You can even receive a full refund of your first month’s premium if you decide to cancel within the first 30 days of your policy. You’ll also be able to change your beneficiaries or update their death benefit amount and contact information at any time after you’ve purchased your policy. 

Lemonade Life User Experience 5 Stars

Lemonade’s user experience is designed for tech-savvy customers who want a quick and easy way to find and purchase a term life insurance policy. Everything within the website and the mobile app move smoothly, and the fact that you can purchase your policy 100% digitally means it can be done anywhere at any time. Remember, every life insurance program requires a life insurance beneficiary, and it’s easy to make those choices using Lemonade.

Lemonade Customer Service

Lemonade offers several options for customer service, including phone, email, messaging via the Lemonade app and website, and social media. You can reach Lemonade at help@lemonade.com or by calling 1-844-733-8666.

Lemonade Claims Process

Like most insurance policies, benefits will not be paid if there was any false information provided on the application, and it doesn’t cover death by suicide during the first 2 years that the policy is in effect. 

Lemonade’s Term Life Offering vs Competitors

Lemonade Life’s primary competitors are other online life insurance agencies that don’t require a medical exam and offer term life insurance.

Lemonade stands up well to competitors in the same term life insurance sector. This comparison table highlights and compares key features.

How to Apply for Lemonade’s Term Life Offering

To apply for Lemonade’s term life insurance offering, visit the Lemonade website or download the app. Click on the button that says “Check Our Prices.” 

On the next page, you’ll meet Maya, Lemonade’s AI chatbot. Maya asks you to enter your name and answer a few quick questions about your health and lifestyle. From there, you’ll provide more information about yourself, including your Social Security. Your Social Security number is required so it can prevent fraud and fake accounts. 

Lemonade takes privacy very seriously, so any information you provide will be kept confidential. It uses encryption to safeguard your information and it meets or exceeds data and privacy protection regulations.  

If you qualify for Lemonade’s term life insurance offering, you’ll be able to decide on how much coverage you want and how long you want that coverage to be in force. You can pay with a credit or debit card, and your first month’s payment is collected when you finalize your policy. Your premiums will be charged monthly after that. 

Lemonade Term Life Insurance Overall Rating

Lemonade offers highly-rated term life insurance policies that can fit the needs of many individuals. It believes that life insurance should work for the people, so it set out to create a user experience that is easy to use and understand.

Though it only offers term life insurance, it’s a great option for anyone who qualifies and wants to obtain a life insurance policy that does not require a medical exam. You can positively impact your financial future, and these insurance products can also help you improve your financial position. The application and approval process take only minutes, offering peace of mind to customers who want to purchase a life insurance policy quickly. 

People Also Ask

Q

How much is a 500k life insurance policy?

A

The price of a $500,000 life insurance policy depends on several factors, including the type of policy, your age, your gender, your habits and your health. Term life insurance can be significantly less money than permanent types of life insurance like whole life and universal life. Life insurance typically becomes more expensive as you get older, and insurance companies offer different prices to men and women due to their life expectancies. Insurance companies also consider habits like tobacco use and whether you engage in risky hobbies like skydiving. Your health is also a factor. If you have health issues, insurance companies may charge you more for your insurance or decline you for coverage altogether. There is no set price for a $500,000 policy. The best way to find a price is to contact at least 2-3 insurance companies for a quote.

Q

What states does Lemonade cover?

A

Lemonade offers life insurance in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. It cannot replace existing life insurance policies in Florida, Georgia, Indiana, Kansas, Michigan, Nevada, Oklahoma and Wyoming.

Q

Is there anything that term life insurance does not cover?

A

Yes, term life insurance policies contain some exclusions. It does not cover death from suicide within the first 2 years of a life insurance policy. It also doesn’t cover claims if false or inaccurate information is provided during the sign-up process.

Q

Where is Lemonade Life offered?

A
  1. Lemonade’s term life insurance policies are available in almost every state within the United States. It is not currently available in New York, but Lemonade is working on adding it to the list.

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 endorsements and riders, by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Products or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply. Not available in New York. The application asks about your lifestyle and health to avoid requiring a medical exam.

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Methodology

Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.

About Melinda Sineriz

Melinda specializes in writing about mortgages. student loans, personal loans, insurance, managing credit and debt, and credit cards.