Lemonade Life Insurance: Quick Coverage You Can Buy Online
Healthy adults can find cheap life insurance from Lemonade without having to take a medical exam.
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Editor's Rating
Lemonade offers cheap and convenient life insurance, especially for younger adults. Unlike at more traditional insurance companies, you can apply for Lemonade life insurance online without having to get a medical evaluation.
Instead, applicants answer a few questions about their health and lifestyle in Lemonade's online portal and receive a quote once their information is verified. Lemonade's online form is convenient, but if you're wary of entering personal details or health information online, such as your Social Security number or medical history, you might want to look elsewhere.
Lemonade puts a lot of focus on its online experience, but that means it doesn't provide much one-on-one guidance like you'd get from an insurance agent. If you don't know what kind of policy or how much coverage you need, you're likely to get better assistance from another company.
Pros and cons
Pros
Affordable term life insurance
Quick online quotes
No medical exam
Cons
No coverage limits above $1.5 million
Not available to people over 60
Hard to talk to a person
Lemonade term life insurance
The average cost of a 20-year term life insurance policy from Lemonade is $28 per month for a healthy 35-year-old person, but rates change with age and gender.
Lemonade offers term life insurance for periods between 10 and 30 years. Users can purchase up to $1.5 million of coverage. However, if you're older, you may find fewer options available: For example, a 55-year-old can only buy a 10-year policy.
The average cost of life insurance for a healthy 35-year-old applicant is $28 per month for a $500,000 policy.
However, smokers pay substantially more than nonsmokers at Lemonade. Rates for smokers at Lemonade are more than four times as expensive, with an average of $121 per month across men and women.
Lemonade coverage restrictions
Lemonade life insurance is available to generally healthy applicants between 18 and 60 years old. The insurer's online form asks users about their medical history, including whether they've been diagnosed with a range of chronic conditions, cancers and other life-threatening diseases.
Certain activities are prohibited by Lemonade. Policyholders are restricted from participating in skydiving and other high-risk activities. Lemonade also limits the policy lengths and coverage amounts older customers can get.
Lemonade term life insurance quotes
Coverage from Lemonade is an affordable option for many people compared to the national cost of life insurance. And its prices are competitive with other online-only life insurance companies for lower coverage levels. However, as shoppers add more coverage to their policies, Lemonade becomes slightly more expensive than Ladder Insurance, another online provider.
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Monthly cost of Lemonade life insurance coverage vs. competitors
$250K | $500K | $1 million | |
|---|---|---|---|
| Ladder | $19 | $23 | $40 |
| Lemonade | $20 | $32 | $58 |
| Fabric | $21 | $32 | $58 |
While Lemonade life insurance prices are competitive with other no-exam life insurance companies at lower coverage levels, Ladder offers a much better quote for a large policy. It also offers up to $8 million in coverage.
Monthly cost of Lemonade term life insurance by age
The cost of a Lemonade life insurance policy increases substantially as you age. While a 35-year-old will only pay about 20% more than a 25-year-old each month, rates nearly double between age 35 and 45. They nearly double again between 45 and 55.
25
35
45
55
Coverage amount | Men | Women |
|---|---|---|
| $100,000 | $12 | $9 |
| $250,000 | $18 | $12 |
| $500,000 | $29 | $18 |
| $1,000,000 | $51 | $30 |
Monthly rates displayed are for a 20-year term policy for a nonsmoker.
25
Coverage amount | Men | Women |
|---|---|---|
| $100,000 | $12 | $9 |
| $250,000 | $18 | $12 |
| $500,000 | $29 | $18 |
| $1,000,000 | $51 | $30 |
Monthly rates displayed are for a 20-year term policy for a nonsmoker.
35
Coverage amount | Men | Women |
|---|---|---|
| $100,000 | $13 | $10 |
| $250,000 | $20 | $16 |
| $500,000 | $32 | $24 |
| $1,000,000 | $58 | $42 |
Monthly rates displayed are for a 20-year term policy for a nonsmoker.
45
Coverage amount | Men | Women |
|---|---|---|
| $100,000 | $19 | $15 |
| $250,000 | $35 | $27 |
| $500,000 | $61 | $47 |
| $1,000,000 | $116 | $88 |
Monthly rates displayed are for a 20-year term policy for a nonsmoker.
55
Coverage amount | Men | Women |
|---|---|---|
| $100,000 | $30 | $24 |
| $250,000 | $58 | $46 |
| $500,000 | $108 | $85 |
| $1,000,000 | $209 | $164 |
Monthly rates displayed are for a 10-year term policy for a nonsmoker.
Lemonade life insurance reviews and ratings
Lemonade life insurance is generally well-reviewed by its customers. Lemonade works with North American Co. for Life and Health Insurance to provide its coverage. This means that the prices, as well as the underwriting of the policy, come from North American. The company receives 72% of the typical number of complaints, according to the National Association of Insurance Commissioners (NAIC). This suggests good, but not industry-leading, customer service.
Lemonade's financial stability is also rated "Exceptional" by Demotech, a credit rating agency. Although Lemonade isn't a conventional life insurance company, policyholders likely won't have to worry about the insurer's long-term financial security.
Methodology
ValuePenguin collected rates for Lemonade life insurance for individuals 25, 35, 45 and 55 years old. We got quotes for men and women looking for multiple levels of term life coverage. The rates are for a 20-year term life policy, except for the rates for a 55-year-old, which are for a 10-year policy.
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