Lemonade Life Insurance Review

Updated: October 3, 2024

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MoneyGeek’s Take: Is Lemonade Right for You?

MoneyGeek’s analysis of Lemonade shows that the company may suit you best if you need significant insurance coverage for a specific term, are looking for a completely online process and want to avoid the hassle of going through a medical exam.

But, this company won’t be suitable if you seek permanent life insurance, like whole life or universal life policy, since they are not available. MoneyGeek recommends purchasing a whole life policy from State Farm, which offers various policy types and valuable rider options.

If you need a universal life policy, Northwestern Mutual may be the ideal option as its policies come with many rider options and dividends and let you choose the length of the payment term.

Keep reading to find out the details of Lemonade’s term life insurance policy options.

At a Glance: Lemonade Life Insurance

Lemonade

pros

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Doesn’t require a medical exam

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Offers a completely digital process

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Affordable term life insurance policies

cons

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Doesn’t offer permanent life insurance

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Not available in all U.S. states

COMPANY HIGHLIGHTS

Lemonade offers various insurance products, including pet, auto, homeowners, renters and life insurance. The company started operations in 2015 and has grown to offer policies nationwide, although not every product it sells is available in every state.

Those looking to purchase life insurance from the company should know that it only offers term life policies, with a maximum term of 30 years. Your premium will stay fixed for the term you choose. You can benefit from its completely digital service, with no wait times or medical exams.

The average cost of a Lemonade policy can be as low as $9 a month. However, the company may not approve your policy if you have cancer, heart disease or other life-threatening conditions.

TABLE OF CONTENTS

Key Takeaways

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Lemonade’s term life policy doesn’t require a medical exam and offers 10, 15, 20, 25 and 30-year term options.

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The maximum coverage limit of Lemonade’s term life policy is $1.5 million.

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You may get a Lemonade term life insurance policy for as little as $9 monthly.

Lemonade Policy Options Explained

The 2022 Insurance Barometer Study from the Life Insurance Marketing and Research Association (LIMRA) shows that 44% of U.S. adults would face hardship within six months if they didn’t have life insurance.

MoneyGeek explains which type of life insurance policy Lemonade offers so you can determine if it is the right choice to protect your loved ones.

Term Life Insurance Options From Lemonade

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    Term Life Insurance

    The only type of life insurance Lemonade offers is term life insurance. You won’t have to take a medical exam with its term policy, but you will answer a few questions about your health. You can apply for a policy if you are generally healthy and between 18 and 60 years of age. The available term options are 10, 15, 20, 25 and 30 years. You can get maximum coverage of $1.5 million with Lemonade. Your premium will depend on your term and coverage amount, age, location and health profile.

Lemonade’s term life insurance policy may be the best option for individuals who are healthy and are looking for significant short-term coverage without a medical exam and a fast application process.

How to Get Lemonade Life Insurance

The following sections will help you understand how to buy life insurance from Lemonade and what to do in case the company rejects your application.

How to Buy Life Insurance From Lemonade

  1. 1
    Do Your Research

    Lemonade offers various resources to help you understand life insurance and choose the ideal policy for your needs. These resources can inform you about coverage limits, age requirements and other essential factors.

  2. 2
    Compare Quotes

    You can get a quote from Lemonade after understanding the type of policy it offers and other essential details. Compare the rate you get from this insurer with other insurance providers to see if they offer you a better deal.

  3. 3
    Health Check

    Opting for a Lemonade term life policy means you won’t have to get a medical exam. Instead, the company’s AI Chatbot, Maya, asks you a few questions about your health during the application process.

  4. 4
    Approval

    Lemonade offers fast approvals for its customers. Your policy will begin when the company notifies you of your approval.

What to Do if Lemonade Insurance Denies You Coverage

  1. 1
    Contact Your Broker

    There can be many factors that may have played a significant role in denial. It’s best to contact Lemonade and ask why the company did not approve your policy.

  2. 2
    Lifestyle Changes

    The primary cause of Lemonade denying your application can be your health status or lifestyle choices. Improving on these factors may help you get approval for a policy when you apply again.

  3. 3
    Explore Other Options

    You could explore other options if Lemonade denies you a policy due to your health status or another reason. Other insurers offer no-medical-exam and final expense insurance, which can be easier to qualify for but may have lower coverage limits.

Frequently Asked Questions About Lemonade Life Insurance

Read the following frequently asked questions to understand how Lemonade life insurance policies work.

Can you borrow from your Lemonade life insurance policy?
What’s the maximum amount of life insurance coverage available from Lemonade?
Do life insurance policies from Lemonade pay dividends?
Can you get life insurance from Lemonade if you have cancer?
Do life insurance policies from Lemonade cover death by drug overdose?
Do life insurance policies from Lemonade cover death by suicide?

About Mark Fitzpatrick

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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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