Life insurance — you know you need it, but you may not have prioritized buying a policy (don’t worry, you’re not the only one).
In addition to being a great way to provide for your dependents and loved ones if the unexpected happens, life insurance is typically less expensive when you’re younger.
Since we’re all getting older by the minute, there’s no time like the present to lock in a great rate.
With Lemonade Life, you can apply for coverage if you’re between 18 and 60, and find out if you qualify within minutes — no medical exam necessary.
For busy people in good health, life insurance doesn’t get much simpler or better than this.
What is Lemonade Life?
Lemonade is already a well-known name in the insurance space, offering homeowners, renters, and pet insurance.
Now they’ve added term life insurance to their wheelhouse. For young people who want inexpensive, effective coverage, a term life policy is the best kind of life insurance you can get. These policies cover you for a specific time or “term,” between 10 to 30 years, in exchange for a monthly premium.
How does Lemonade Life work?
Since Lemonade’s term life insurance offering doesn’t require a medical exam, you can fill out the whole application in one sitting. If you qualify for coverage, you’ll get an approval within minutes.
Visit Lemonade’s website or mobile app (I used the website) and click on “Check Our Prices” to start the process with Maya, Lemonade’s friendly artificial intelligence “chatbot.”
Step one: basic qualifications
First Maya asked me three qualifying questions:
- Was I between 18 and 60 (Lemonade Life’s age range) with no “serious weight issues”?
- Had I been treated for serious health conditions like cancer or heart disease in the past 10 years?
- Had I used hard drugs or marijuana in the past 10 years?
I’m not sure if positive answers to the last two questions would have automatically disqualified me from coverage — that’s a point I wish Lemonade Life was clearer on.
Next, Maya collected my identifying info, then asked me to name one or more beneficiaries — the people who’d receive the death payout if I passed away while my policy was in effect.
You can change your beneficiary down the line if you choose, but it’s a good idea to have someone in mind when you apply.
Maya also asked if I had life insurance coverage elsewhere.
Step two: medical history
The next part of the application involves a lot of the health history questions you’d go over with a representative in an in-person medical exam.
These questions ask for details on:
- Tobacco use during the past 12 months.
- Medical tests and major diagnoses in the past 12 months.
- COVID-19 diagnoses in the past 30 days.
- Weight loss in the past six months.
- Diagnoses and treatment over the past 10 years for various illnesses.
There are two more pages of potential diagnoses after this one, so Lemonade Life is pretty thorough.
Maya also asks about your family medical history.
Step three: lifestyle risk
After some questions about citizenship, residency, employment status, and annual income (you don’t need to provide documents or proof, just check the boxes), Maya moves on to detailed questions about your lifestyle. This is another way the provider measures the risk of insuring you.
Expect questions about:
- High-risk activities (like skydiving, motor vehicle racing, and rock climbing) you plan on in the next two years.
- Misdemeanors, felonies, and DWIs in the past 10 years.
- Whether you’ve been declined for life insurance in the past two years.
- Alcohol and drug use, both current and in the past 10 years.
It’s worth noting that when the application asks about marijuana use, they don’t distinguish between recreational and medical marijuana.
Step four: application review
Whew — that seems like a long questionnaire, but the process goes quickly, and I was done in less than five minutes. I “e-signed” with my name and Social Security number, which Lemonade Life requires to prevent fraud. They promise to encrypt this info and keep it confidential.
Finally, Maya reviewed my application, which meant I kept the window open for about five minutes while Lemonade Life’s algorithms worked their accelerated underwriting magic.
Candidates who qualify for a policy select their term length (how long they want coverage) and their preferred coverage amount, then make their first monthly premium payment. Without the need to wait for exam results, it’s an unusually speedy process.
How much do policies offered by Lemonade cost?
Underwriting is complex, even with Lemonade Life’s accelerated method. At the end of the day, rates will vary based on your age, health, gender, and location, as well as the coverage amount and term you want.
Policies start at $9/month or $108/year. Young candidates in good health who pick low coverage limits might score this rate, but most people will pay higher premiums, especially if you want longer-term lengths (a 30-year policy will cost more than a 10-year policy).
A $20/month or $240/year premium is a more typical range. That’s still lower than the industry average of $359.78/year, making Lemonade’s term life offering an affordable option even if you don’t qualify for rock-bottom rates.
As with all life insurance policies, smokers and tobacco users pay significantly more than nonsmokers.
Lemonade Life features
With term life insurance offered by Lemonade, you pick a “term” or time period during which you want active coverage. Choose between 10-, 15-, 20-, 25-, and 30-year terms.
The terms aren’t renewable — once the term runs out, you’ll need to reapply if you want coverage to continue.
But your price remains the same for the length of the term, which is great for future financial planning. Especially if you snag a low rate when you’re young, Lemonade’s consistent premiums can really save you money, since the price won’t change if your health declines or when you inevitably get older.
Lemonade Life – this is one of the things that truly sets them apart – offering Term Life Insurance up to $1.5 million. This amount, also known as the death benefit, is the tax-free total your beneficiaries will get if you pass away during the term.
I was impressed by the range of coverage amounts; no-exam policies tend to have lower coverage limits, and a $1.5 million maximum for no-exam Term life insurance is uncommon.
No medical exam
Candidates don’t have to wait for the results of a medical exam to find out if they’ll qualify for coverage. They don’t even have to upload any documents or send in a blood sample.
Lemonade Life keeps things simple by asking all the essential health and lifestyle questions online. That doesn’t mean Maya won’t double-check your info. The electronic application review cross-checked the answers I provided against medical prescription databases and public data sources (like motor vehicle records).
Death benefit payout
You have lots of flexibility in choosing a beneficiary for the death payout. You can choose who would be financially affected if you passed away — a family member, a domestic partner, or a business partner. If you name multiple beneficiaries, you’re able to split the benefit between them however you see fit.
The death benefit amount you’ve chosen will go to your beneficiaries tax-free, within a few weeks of their filing a claim. Lemonade Life provides an online form to keep the claim process easy.
Policies for Lemonade’s term life insurance offering have two major exclusions (circumstances in which they won’t cover a claim):
- If the policyholder provides inaccurate information on their intake form.
- If the policyholder dies by suicide within the policy’s first two years.
If you have questions Maya the chatbot can’t answer, it’s easy to get in touch with a human Lemonade representative.
- Send a message via the “Help” button (on the website, it’s in the bottom right-hand corner of the screen).
- Email (firstname.lastname@example.org).
- Phone (1-844-733-8666).
- Lemonade’s social media.
There’s no charge to cancel a policy, and if you cancel within the first 30 days, you’ll get your first monthly premium refunded in full.
My experience with Lemonade Life
I’d heard about the convenience of accelerated underwriting methods for life insurance, and it’s true they don’t waste any time.
Maya gave me an instant denial so I didn’t have to wait and wonder whether I’d be approved.
Lemonade followed up immediately with an email and attached message explaining why they were declining coverage. The attachment was password-protected — I had to enter my SSN and birth date — which indicates they’re serious about keeping applicant info confidential.
I’d like to see more extensive coverage options for people with various medical conditions. Some providers that issue no-exam policies give you the option of applying for an exam-based policy instead.
Since a detailed medical screening reduces the risk for the insurer (because they have more info about you), the exam can sometimes qualify you for coverage when you’d otherwise be declined, or reduce your rates. Lemonade Life doesn’t offer this option.
But I’d still recommend Lemonade Life for its competitive prices, and it’s absolutely worth filling out the application to see if you’ll get a quote — the process was fast, simple, and completely free!
Who is Lemonade Life best for?
Generally healthy people
Candidates in good health will find it easier to qualify, and they’ll often be able to lock in lower rates, if approved.
People shopping for term life insurance
For most young people, term life insurance is the easiest, most cost-friendly option to help protect your family’s future.
People looking for medium to large coverage amounts
Lemonade Life offers substantial coverage starting at $50,000 and up to $1.5 million, even more than you’ll probably need.
Who shouldn’t use Lemonade Life?
People looking for permanent life insurance
If you want a permanent policy that lasts your entire life and builds cash value, such as whole or variable life insurance, you’ll need to apply with another carrier.
People with serious chronic health conditions
A history of major medical issues, like cancer, heart disease, and other life-threatening conditions (including some forms of substance abuse) will make it harder to qualify.
New York state residents
Lemonade Life is available in just about every state but New York.