Lemonade Life Insurance: Quick Coverage You Can Buy Online
Lemonade provides low-cost life insurance, particularly to young people aged 21 and up. Unlike other insurance companies, Lemonade allows you to apply for life insurance online without having to undergo a medical exam. Instead, applicants answer a few questions about their health and lifestyle in Lemonade's online portal and then receive a quote once their information has been verified. Lemonade's online form is user-friendly, but those who are hesitant to enter personal information online, such as their Social Security or driver's license number, should look elsewhere.
Lemonade term life insurance
A 20-year term life insurance policy from Lemonade costs $240 per month on average for healthy 35-year-olds, but rates vary depending on age and gender.
Lemonade provides term life insurance for terms ranging from 10 to 20 years. Users have the option of purchasing up to $1 million in coverage. Lemonade advertises a low monthly rate of $9, but most applicants will see higher premiums depending on their term limit, policy face value, and personal information.
The average monthly cost of life insurance for a healthy 35-year-old applicant is $240, with men paying more and women paying less. Individuals with the best health — those in Lemonade's preferred plus tier — have the lowest rates. Those on the preferred tier earn 21% more than the healthiest people, and those on the regular tier earn 49% more than those on the preferred plus tier.
Health tier | Men | Women |
Preferred plus | $255 | $225 |
Preferred | $325 | $280 |
Regular | $495 | $445 |
Nonsmokers pay far less per month for Lemonade life insurance than smokers. A 20-year term life insurance policy for a smoker costs $945 per month on average. Lemonade does not classify smokers as premium plus. Instead, the healthiest smokers are placed in the preferred tier and pay more than twice as much as a comparable non-smoker.
Health tier | Smoker | Non-smoker |
Preferred plus | N/A | $240 |
Preferred | $945 | $303 |
Regular | $1,273 | $470 |
Lemonade coverage limitations
Lemonade life insurance is available to applicants between the ages of 21 and 55 who are in generally good health. Users are asked about their medical history on the insurer's online form, including whether they've been diagnosed with any of a number of chronic conditions, cancers, or other life-threatening diseases.
Lemonade prohibits certain activities. Skydiving and other high-risk activities are prohibited for policyholders.
Lemonade term life insurance quotes
When compared to the national average cost of life insurance, Lemonade coverage is a more affordable option for many people. When compared to other online life insurance companies, Lemonade is less expensive at the lowest coverage levels. When compared to Ladder Insurance, another online provider, it becomes slightly more expensive as shoppers add more coverage to their policies.
While Lemonade life insurance is less expensive than other insurers on some levels, applicants over the age of 55 and those seeking more than $1 million in coverage must look elsewhere. Still, Lemonade is a good option for those who don't want to take the time to get a medical exam before purchasing a policy.
Age | Death benefit | Men | Women |
25 | $100,000 | $10 | $9 |
$250,000 | $13 | $11 | |
$500,000 | $20 | $17 | |
$1,000,000 | $33 | $27 | |
35 | $100,000 | $10 | $9 |
$250,000 | $14 | $12 | |
$500,000 | $21 | $19 | |
$1,000,000 | $35 | $31 | |
45 | $100,000 | $16 | $13 |
$250,000 | $28 | $22 | |
$500,000 | $48 | $38 | |
$1,000,000 | $89 | $69 | |
55 | $100,000 | $35 | $27 |
$250,000 | $64 | $48 | |
$500,000 | $118 | $88 | |
$1,000,000 | $223 | $163 | |
Rates displayed are for non-smokers.
Lemonade life insurance reviews and ratings
Lemonade's coverage is provided by North American Company for Life and Health Insurance. This means that the prices applicants are quoted, as well as the policy's underwriting, are sourced from North America. As a result, if the insured dies, the beneficiary will have to deal with North American if they need to file a claim.
North American Life and Health Insurance receives fewer complaints than expected for its market share or size, with a Complaint Index of less than 1.0 from the National Association of Insurance Commissioners (NAIC). Demotech, a credit rating agency, has also rated Lemonade's financial stability as "Exceptional." Although Lemonade is not a traditional life insurance company, policyholders should not be concerned about the insurer's long-term financial viability.
Methodology
Lemonade life insurance quotes were gathered by LowCostInsurance for people aged 25, 35, 45, and 55. We received quotes from men and women seeking various levels of term life insurance. The rates shown in this study are for a 20-year term life insurance policy.