A lot of insurance companies focus strictly on one niche, providing people with a single line of insurance, like life, home, or auto.
Others, like Lumico Life Insurance Company, aim to meet multiple needs.
As their motto explains, the company “protects what matters most- your family and your health.”
To decide whether or not Lumico Life is the right provider for the job, you need to analyze the company and the products it has to offer.
In this review, we take a closer look at Lumico Life’s history, financial strength, and policies to help you make the call.
Our Lumico Life Insurance Company Review
Lumico Life Insurance Company is an insurance and Medicare supplement provider offering term and whole life policies, as well as insurance to cover final expenses.
The company was founded on December 8, 1965, when it officially received insurance licensing in Arizona.
It operated under the name Congress Life Insurance Company until 2013. Lumico Life received reinsurance partially from Allianz Life Insurance Company in 1995.
A year later, it received reinsurance for its universal life policies via Guarantee Life Insurance. Lumico Life also acquired full reinsurance from Security Life Insurance.
The most significant chapter in the history of Lumico Life was in 2016, when it was acquired by iptiQ Americas, Inc., which is part of the Global Fortune 500 reinsurer Swiss Re.
The acquisition involved a re-branding, as well as obtaining establishment and licensing in New York.
According to its website, Lumico Life’s primary goals are to provide straightforward solutions to life and supplemental health insurance needs.
The mission statement underscores an emphasis on a simple process and affordable prices. As a result, shopping with Lumico Life should exceed customer expectations.
One of the reasons why Lumico Life is not widely known to the general public is that it incorporates a B2B2C model.
As such, Lumico Life sells its products to companies which in turn offer them to consumers or employees.
Financial Strength and Ratings
Lumico Life has seen steady growth since its inception.
The company had more than $60 million in total assets as of 2018, which represented a fifteen percent increase from two years before.
During that same period, the total liabilities rose considerably from $9.3 million to $14.1 million.
Currently, the company’s asset to liability ratio is 4.26. Lumico Life also has a net surplus of more than $43 million.
There has also been a sizeable growth in life and annuities premiums, which have quadrupled between 2016 and 2018.
The renowned credit rating agency, A.M. Best, gave Lumico Life an “A” rating for financial strength in its latest analysis.
This is the third-highest rating possible and is synonymous with the word “excellent.”
Therefore, policyholders can reasonably expect Lumico Life to meet its ongoing insurance obligations comfortably.
Lumico Life Insurance has a “B” rating from the Better Business Bureau (BBB).
There are a number of temporary and permanent life insurance products to choose from with Lumico Life.
We’ll take a look at what each one has to offer below.
Term Life Insurance
Term life coverage is arguably the most popular form of life insurance.
The policy covers a select timeframe, known as a term, and is less expensive than permanent life insurance.
Lumico Life’s term policies can go up to $1 million and terms range from 10 to 30 years.
The premiums are level, so policyholders don’t have to worry about inflation or spikes in the price.
Final Expense Insurance
LUmico Life’s final expense insurance comes in three forms: Preferred, Standard, and Modified.
- Preferred: This option has a face value between $5,000 and $30,000 and is available for people between the ages of 50 and 85. One of the perks of the Preferred model is the immediate payout.
- Standard: The second option comes with the same coverage of $5,000 to $30,000. The primary difference is that the Standard plan has an incremental payout. People will receive approximately 25% of the benefit over four years.
- Modified: People ages 50 to 70 are eligible for this coverage, which ranges from $5,000 to $15,000. Like the Standard policy, the Modified policy comes with a staggered payout system.
What you pay in premiums will depend on your age, health, and sex, among other factors.
Lumico Life does not require a physical or medical examination for approval.
Underwriting is based on a health questionnaire and other records rather than an exam.
Whole Life Insurance
As the name suggests, whole life insurance is valid for an individual’s entire lifetime.
Also known as permanent insurance, it is a straightforward option that comes with level premiums and grows in cash value each year.
Policyholders have access to the cash value throughout their lives.
Like the term life option, Lumico Life Insurance provides up to $1 million of coverage to policyholders.
One of the consequences of the cash value accumulation is significantly higher premiums.
When the policyholder dies, the beneficiaries receive the benefit as tax-free federal income.
Medicare Supplement Insurance
This plan is for individuals 65 and older. It serves to complement existing health coverage, giving policyholders the flexibility to choose their providers.
Lumico Life Insurance’s version of Medigap has a straightforward application process and does not require an examination.
Plans are also renewable every year, and Lumico Life representatives will work with you to make sure the coverage fits your budget.
When you shop for life insurance, you should always look into multiple providers.
Comparing policies and getting quotes from more than one company allows you to secure the lowest rates and the best match for your coverage needs.
If you’re considering Lumico Life, you should also explore the alternatives below:
- Banner Life: If you’re in the market for term life insurance, Banner Life is the most affordable provider. Their term life policies also come with access to riders and convertibility, adding even more flexibility to your coverage.
- Prudential: Lumico Life’s strict underwriting makes qualifying for low rates challenging. If you have high risk factors, Prudential and their less stringent underwriting can get you the policy you need at a lower cost.
- Mutual of Omaha: If you’re considering a final expense policy from Lumico Life, you should also take a look at Mutual of Omaha. Their policies are widely available, competitively priced, and underwritten quickly.
Like any company, Lumico life has both strengths and weaknesses.
First, take a look at some of Lumico Life’s best features:
- Financial strength: The steady financial backing of its holding company, Swiss Re, provides credence to the economic strength of Lumico Life. Swiss Re is the second-largest reinsurer in the world, which bolsters the financial health of Lumico Life by proximity. Lumico Life also holds an “A” rating from A.M. Best.
- Beneficial final expense coverage: If you qualify for the Preferred plan, you should consider Lumico Life as a viable option. It has a robust offering that comes with substantial compensation and a comprehensive portfolio.
- Cost: Clients at Lumico Life can expect relatively competitive rates on their insurance plans, too. The company is accepting of a handful of specific medical conditions, for example, such as seizures and mild mental health disorders like anxiety and depression.
- No exam coverage: Lumico Life does not require medical examinations during the application process, relying on a simplified process involving a questionnaire instead.
Along with those highlights, here are some of Lumico Life’s less promising features:
- Strict Underwriting: Lumico Life Insurance is relatively strict on the underwriting side. The company does not offer significant medical caveats, despite some of the tolerated conditions mentioned above. For instance, if you are on blood thinners, they will steer you towards the Standard plan, which is likely not in your best interest over the long run.
- Availability: Currently, the organization sells life insurance policies in 42 states. The exceptions include California, Montana, North Dakota, South Dakota, Florida, Delaware, New York, and Maine.
- Product lineup: While Lumico does well with the products it offers, it lacks a universal product. You can also find more affordable and expansive term life insurance by looking elsewhere.
If you’re looking for a financially stable insurance company with products to meet multiple health and life insurance needs, Lumico Life fits the bill.
They’re also among the growing number of companies offering no exam coverage, which meets their goal of making life insurance simple and clear.
While all of the above is true, Lumico Life isn’t likely to offer you the lowest rates on life insurance, especially if you have any impaired risks.
Before you choose Lumico Life or any of its alternatives, take a few moments to educate yourself about other companies and get quotes.