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Lemonade Life Review


ConsumersAdvocate.org Rating: 4.4 / 5 (Excellent)
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Lemonade is an insurance technology company that offers a wide range of consumer insurance products, including renters, homeowners, pet health, and term life. The company uses bots instead of brokers and other forms of artificial intelligence to make buying life insurance fast and easy. Life insurance policies at Lemonade are underwritten by Bestow and issued by North American Company for Life and Health Insurance®. Lemonade’s company’s headquarters are in New York, New York.
 
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How Do We Rate Lemonade?

Breakdown

4.5/5
Company Stability
4.0/5
Reputation
4.5/5
Policies & Coverage

Our Overall Rating: 4.4 / 5 (Excellent)

Unlike many other term life insurance companies, Lemonade does not require its customers to undergo a medical exam in order to get a quote. Powered by artificial intelligence and behavioral economics, Lemonade has created a term life insurance quote experience that makes the process quick and easy.

Lemonade offers 10, 15, 20, 25, and 30-year policy terms. The company is frank in saying that its policies are designed for people in very good health. That's one reason why the company can offer premiums that are lower than many companies' rates. Term policies are available for as low as $9 per month, though that rate is likely reserved for customers the company deems very low risk. So while Lemonade might not be for everyone, if you match the company's ideal applicant profile, and approved, Lemonade may be able to offer you a very affordable term life insurance solution.

Financial Strength

Key Details

Underwriter
North American Company for Life and Health Insurance®
Premiums Written 2019
$0
Standard & Poor's Financial Rating
NR
AM Best Financial Rating
A+
Additional Financial Information

Company Stability - 4.5 / 5

North American Company for Life and Health Insurance®, the company that provides the term life insurance policies offered by Lemonade Life, is rated A+ (Superior) by A.M. Best. A+ (Superior), the second-highest rating out of 15 categories. A.M. Best is an independent third-party reporting and rating company that rates insurance companies on the basis of the company’s financial strength, operating performance, and ability to meet its ongoing obligations to policyholders.
*The above information reflects the market share, premiums, and financial strength of the issuer of the Lemonade life insurance policies: North American Company for Life and Health Insurance®.

Reputation & Customer Experience

Customer Ratings

Trust Pilot Rating
2.6 out of 5
BBB Rating
C
Date Collected
2021-04-28

Reputation - 4 / 5

Lemonade receives an A (exceptional) rating from Demotech for financial stability in Property and Casualty Insurance, which is an important consideration. You want your insurance company to be solvent enough to pay its claims, after all. Customers gave Lemonade a 4.86 rating on Clearsurance, with 96% of customers saying they’d recommend Lemonade to a friend.

The Better Business Bureau gives Lemonade a C rating but consumer reviewers on the site skew positive, with a score of 4.25 out of 5 stars. Trustpilot users give Lemonade a rating of 2.6 out of 5 stars. Thee Lemonade mobile app fares well among consumers, earning 5 stars on the Apple App Store and 4.5 stars on Google Play.

Lemonade Policies

Lemonade offers customers the following life insurance policies: Term.

Term Life Insurance

Minimum Age
18
Maximum Age
60
Maximum Death Benefit
$1,500,000
Available Terms
10 year
15 year
20 year
25 year
30 year

Policies & Coverage - 4.5 / 5

Lemonade offers term life insurance with death benefits up to $1,500,000. Customers may choose either a 10, 15, 2, 25 and 30-year policy term. That's a broad range of options and the company give customers plenty of flexibility in the area of terms and benefit limits.

Lemonade could be more transparent about the coverage included in its term life insurance, as well as any options customers have to customize their policies. To see a summary of your coverage, you must apply and be approved first.

Flexibility and Available Riders

Flexibility & Available Riders - 3.5 / 5

Policies offered by Lemonade cannot be customized with any riders.

Lemonade offers term life policies for customers aged 18 through 60. The company states that its policies are designed for people in very good health who have no history of heart disease, cancer, other life-threatening conditions, or a habit of engaging in high-risk activities, including drug or alcohol abuse, or participating in dangerous sports.

Additional Company Information

Homepage URL
https://www.lemonade.com
Headquarters Address
3 Crosby Street, New York, NY, 10003
Year Founded
2016

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 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. North American is rated A+ (Superior) by A.M. Best. 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 August 19, 2020. 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. The application asks about your lifestyle and health to avoid requiring a medical exam.

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