When you go to the website for Lumico Life Insurance, the company has a very intuitive and colorful website, making it look like it’s one of these new online-only insurance companies. But according to the Better Business Bureau (BBB), Lumico has been in business for 35 years. While this is technically young for an insurance company, it’s an established brand. In our Lumico Life Insurance review, we’ll take a look at the products it offers and the reputation of the company.
- Pros and Cons of Lumico Life Insurance
- Products Offered by Lumico Life Insurance: 60/100
- Financial Strength Rating of Lumico Life Insurance: 90/100
- Customer Satisfaction Rating of Lumico Life Insurance: 40/100
- Consumer Complaints Rating of Lumico Life Insurance: 10/100
- Digital Experience Rating of Lumico Life Insurance: 40/100
Pros of Lumico Life Insurance
- Has generous coverage amounts going up to $1 million for term and whole life
- Strong financial strength rating through AM Best
- Lets you shop for life and health insurance
Cons of Lumico Life Insurance
- Customer reactions are on the negative side, with a high complaint index through the National Association of Insurance Commissioners (NAIC) and many complaints through the BBB.
- The website, for how updated it looks, still wants you to call, mail or email for more information, so you cannot get quotes online
Life Insurance Products Offered By Lumico
To start our Lumico Life Insurance review, we looked at the types of products it offers. Lumico is an interesting company in that it focuses on combining life and health insurance for people who don’t quite have enough of each. On the company’s about page, it states, “At Lumico we are out to solve two big problems – that people don’t have enough life and supplemental health insurance and that they find purchasing these products confusing.”
As for life insurance, it offers three main products. It has term life insurance, which runs for 10, 15, 20 or 30 years, and coverage goes up to $1 million. The whole life plan is a permanent option that has coverage up to $1 million as well. There is also a final expense plan that has coverage up to $30,000. All premiums are flat across all the plans.
As far as plan selection goes, this is more on the limited side. Other larger insurers tend to have a wide variety of universal life plans like index, variable and guaranteed. If you want a permanent plan with a larger death benefit, it looks like your one option here is whole life, which is an older plan type with less flexibility.
Financial Strength Rating of Lumico Life Insurance
Through AM Best, Lumico Life Insurance Company of New York has an A (Excellent) financial strength rating with an outlook that is listed as stable.
The long-term issuer credit rating is listed at a+ (Excellent) and is also listed as stable.
Customer Satisfaction Rating of Lumico Life Insurance
Lumico is not rated through the J.D. Power 2019 Life Insurance Study, so we could not cover that in our Lumico Life Insurance review.
However, the company does have a B rating with the BBB. While not the highest rating, it’s not awful, either. The company is not officially accredited with the BBB, though.
It also has about two stars from 33 customer reviews. One complaint claimed that the life insurance policy did not pay out after an insured’s death after months of waiting. Other reviews are general and vague complaints about customer service. However, Lumico has responded to most complaints.
Consumer Complaints Rating of Lumico Life Insurance
Through the NAIC, Lumico Life Insurance (company code 73504) had a total complaint index of 4.19 in 2019. This is over four times higher than the expected industry complaints, listed as a 1.00 measure. Individual life insurance had nine complaints, putting them at a 10.06 complaint index for that insurance type, or over 10 times the industry expectation. This is by far the worst NAIC consumer complaint rating that we have seen in the 30+ life insurance companies that we have reviewed.
Digital Experience Rating of Lumico Life Insurance
As mentioned above, the website has a very user-friendly and updated look to it. It scrolls well and gives you information right up front on what types of products it offers.
However, to get more information, you have to go to the contact page and it wants you to call, email or mail the company for life insurance information.
Final Thoughts in Our Lumico Life Insurance Review
Tread lightly with this company. Consumer feedback is poor through the NAIC and the BBB. However, the company has a strong financial outlook. Product offerings also tend to be more on the basic side, and the website is sparse for information.