If you are searching for Lumico burial insurance review, you’ve come to the right site. This Lumico burial insurance review, we will examine Lumico’s burial insurance or final expense products.
We are going to completely analyze the company and its financial rating. We will reveal both the advantages and disadvantages of their insurance products.
Lumico’s burial insurance is a whole life insurance policy. Lumico offers one level benefit, and two modified benefit plans. All of them are simplified issue burial insurance with no exam required. You can qualify for different plans based on your answer to the health questions on the application.
They have different life insurance products such as term life, whole life, and final expense, but we will be reviewing their final expense or burial insurance product.
FOR EASIER NAVIGATION:
ABOUT LUMICO LIFE INSURANCE COMPANY
Burial insurance from Lumico is underwritten by Lumico Life Insurance Company which is owned by iptiQ (formerly known as Generation Life Insurance Company). The parent company is iptiQ Americas which is backed by Swiss Re (Swiss Reinsurance Company), a large global financial services company that was founded in 1865 and headquartered in Lincoln, NE.
Swiss Reinsurance is an old reinsurance company based out of Zurich, Switzerland. They are a financially stable company. Lumico Life Insurance Company was acquired through Swiss Reinsurer’s new iptiQ Americas, Inc. unit at the end of 2016, and re-named in 2017 to Lumico Life. Lumico Life Insurance Company of New York was established and licensed in December 2018.
LUMICO BURIAL INSURANCE IS AVAILABLE IN THE FOLLOWING STATES:
Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, Nevada, New Hampshire, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
You can purchase burial insurance from Lumico except in the following states: CA, DC, DE, FL, ME, MT, ND, NY, & SD.
LUMICO LIFE INSURANCE FINANCIAL RATINGS
Financial stability is particularly important for life insurance companies to make sure that they can pay claims when the policyholders need it. A.M. Best, the leading rating agency of the insurance agency in the U.S has assigned an “A” rating to Lumico Life Insurance Company. A is an excellent rating which is the second highest of fifteen ratings that they can award. It means Lumico is financially stable and secure.
The rating reflects Lumico’s balance sheet strength, which A.M. Best considers as very strong. The company is a solid enterprise as a member of the Swiss Re group. The mother company will continue to provide reinsurance and capital support to Lumico giving it financial stability.
LUMICO BURIAL INSURANCE REVIEW
Having burial insurance is one way to take care of end of life expenses, and helps ease the financial burden on the family when a loved one pass away. Burial insurance is a type of life insurance policy that covers the final expenses of the insured.
Lumico Life Insurance offers different types of burial insurance to individuals who are age 50 to 85. This is ideal for seniors who want to ensure their funeral is paid for. Lumico is committed to providing products at affordable prices at an easier process.
Lumico Life has three burial insurance policies you can eligible depending on your health. Their final expense life insurance is “simplified issue” and does not require applicants to undergo a medical exam. You only need to answer some simple health questions.
Your answer to the health questions will determine what type of policy you can buy. Every plan has its own age availability, pricing, face amount and payout schedules.
- Age availability: 50-85
- Face amount you can buy: $5,000-$30,000
- Death benefit schedule: Instant, no waiting period effective on day one.
Applicants who qualify for preferred burial insurance can expect a level death benefit with no waiting period. The minimum coverage amount is $5,000 and goes as high as $30,000.
- Age availability: 50-85
- Face amount you can buy: $5,000-$30,000
Death benefit schedule:
- First-year – 25%
- Second-year – 50%
- Third-year – 75%
- Fourth-year – 100%
Can we be honest here….waiting three years for full coverage is a terrible idea!
Especially since almost every other insurance company offers the same plan with only a 2-year wait if you have significant health problems.
Applicants who will qualify for standard burial insurance will have a three year modified death benefit or three-year waiting period…ouch!
For example, if the insured dies in the first year of the policy beneficiaries will receive 25% of the death benefit. If death occurs in the second year, 50% will be given, and the beneficiaries will receive 75% in the third year of the policy. After the third year and any time after that, they will receive 100% of the death benefit.
- Age availability: 50-80
- Face amount options: $5,000-$15,000
- First-year – 10%
- Second-year – 25%
- Third-year – 50%
- Fourth-year – 100%
Holy cow…there is that three year waiting period again!
If you qualify for a modified benefit plan, the maximum coverage amount is reduced to $15,000. This plan is also available up to 80 years old only. The modified death benefit plan also has a graded death benefit with a three-year waiting period.
The death benefit will be paid as follows: if death occurs on the first year of the policy, the payout will be 10% of the actual death benefit. On the second year, 25% will be paid to the beneficiaries, and on the third year 50%. After the third year, and any time after that full death benefit will be given to the beneficiaries.
Lumico’s modified plan is not suitable for everybody because it comes with a waiting period. This is only suitable for those people with certain health conditions that modified policy accept.
If you are healthy, this plan will cost you an arm and a leg. If your health only qualifies you for this plan, we have other companies that offer a better price.
LUMICO BURIAL INSURANCE REVIEW – POLICY FEATURES
- Simple, paperless electronic application
- Immediate underwriting decision
- No phone interviews or medical exams
- Can be applied in person or over the phone
- A simplified issue which is as close to a guaranteed acceptance as you can get
- 100% automated MIB and prescription check
- Lasts until the end of life
- Premium payment is fixed, monthly payments won’t increase
- The policy won’t expire because of age or health condition
- Death benefit won’t decrease
- Tax-free cash benefit payout
- Coverage amount up to $30,000
- Best for seniors who want to ensure their funeral is paid for
UNDERWRITING LUMICO BURIAL INSURANCE
Lumico Burial Insurance Review – UNDERWRITING
A medical exam is not required to qualify with Lumico Life burial insurance coverage. They will only check:
- Your answers in the application
- Your Medical Information Bureau file
- Your prescription history
but, the answer to the health questionnaire is the most important factor that will decide on your approval.
LUMICO BURIAL INSURANCE REVIEW: HEALTH QUESTIONS
Lumico will ask about different medical conditions as part of their underwriting process.
The following questions are the knock out questions. Answering “no” to these two questions on the health questionnaire and a clear prescription history check from all these medical conditions means you are eligible for Lumico’s preferred plan.
- Are you currently hospitalized, requiring nursing home care, confined to a bed, or receiving hospice care?
- Do you have a terminal condition (terminal condition means a medical condition resulting from injury or illness that is reasonably expected to result in the death of the Insured within 12 months or less)?
- Were you diagnosed with Parkinson’s disease? Are you suffering from permanent paralysis from any disease?
- In the previous 24 months did you have a diagnosis for any circulatory disorder such as aneurysm, heart attack, TIA attack, stroke, internal cancer, leukemia, melanoma, kidney disease, connective tissue disorder, neuromuscular disorder such as muscular dystrophy, multiple sclerosis, cerebral palsy, etc), Crohn’s disease, ulcerative colitis, any psychiatric issues that needs treatment?
- In the past 24 months, did you have more than 4 moving violations? Did you have a DUI conviction more than once? Have you been advised to seek alcohol or drug abuse treatment? Do you have a felony conviction, incarceration, probation or parole?
- If you said no to the knock-out question and yes to any of these questions, you will be offered the standard plan.
- Do you use supplementary oxygen for lung and respiratory issues?
- Do you need hospitalizations or surgeries? Do you have diagnostic tests, that haven’t been completed yet and the results are unknown?
- Are you requiring help in performing any daily living activities (eating, bathing, dressing, toileting, transferring, and continence)?
- Do you have an organ or bone marrow transplant, cardiomyopathy or congestive heart failure, mental incapacity, dementia, or Alzheimer’s disease, ALS, dialysis, HIV or AIDS?
- Do you have diabetes diagnosis before age 40?
- Any diabetic complications resulting in heart or circulatory conditions?
- In the last 12 months, have you been treated for a TIA attack, stroke, heart valve disorder, heart attack or heart blockage, any form of cancer, melanoma, lymphoma, leukemia, or systemic lupus, lung disease (does not include mild asthma)?
Any yes answer to the following questions will qualify you for the modified plan.
The type of plan (preferred, standard or modified) you will qualify for will depend on your answers to these health questions. If you say no all of these, you will be eligible for the best plan which is preferred.
PRESCRIPTION HISTORY CHECK
Lumico will electronically analyze your prescription history to check what medications you are taking to treat any health issues. A prescription history check will be used to validate what medical condition you’ve been treating in the past.
Some prescription medications are a red flag and can cause you to not qualify for the preferred plan. If you are taking any prescription medications for health issues they care about, they may respond negatively.
For example, if you say no to kidney failure, but you are taking medication to control a serious kidney condition, Lumico will offer you a plan consistent with someone who has kidney failure.
MEDICAL INFORMATION BUREAU (MIB) REPORT
MIB provides information about previous life insurance application results.
This report is shared among insurance companies for review. If you applied for life insurance in the last six months and were denied coverage, this information will be written in your MIB file which will be available to Lumico Life should you decide to apply in the future.
For example, if you inform the other insurance company you applied before that you have cancer, this information will be on your MIB report. Depending on when you last applied, that could affect the kind of plan you qualify.
LUMICO ADVANTAGES AND DISADVANTAGES
If you are considering buying burial insurance from Lumico, it’s important to analyze their advantages and disadvantages.
Lumico has competitive insurance premium on their preferred plan. If you are generally healthy, Lumico is good, but may not be your best choice as there are better options with other companies.
- Lumico has a two-year lookback period on cancer, circulatory surgeries and heart attack, diabetes, anxiety and depression, and seizures.
- None of the above are amazing advantages because 90% of the other insurance companies accept those medical conditions and will offer you better pricing (with no 3-year waiting period).
- Lumico has a three-year waiting period where more insurance companies only have a two year waiting period….BIG PROBLEM HERE!
- They have a strict underwriting compared to other insurance companies….BIG PROBLEM HERE!
- Blood thinners are a red flag to Lumico. If they found blood thinners on your prescription history, you will be offered a standard plan. (we offer other life insurance companies that don’t even ask or care about blood thinners).
If you are healthy, you can be eligible for Lumico’s preferred plan which is competitively priced. In this case, Lumico is relatively close in price to most other life insurance companies offering burial insurance (but we feel that there are better companies with better pricing out there who want your business).
If you have a medical condition that would result in a standard or modified plan, think twice before purchasing a Lumico policy. They have a three-year waiting period that stinks compared to other companies that only have a two-year waiting period. Again, there are lots of insurance companies which are accepting of most health issues and only have a two-year waiting period.
HOW CAN FUNERAL FUNDS HELP ME?
If you are seeking to buy burial insurance, trust an independent insurance agency like Funeral Funds to compare different life insurance companies to get the best plan.
Trying to find a policy without a 3- year wait needn’t be a frustrating process; working with an independent agency like Funeral Funds will make the process easier and quicker.
If you have a problem with a three-year wait, let us help you; we will work with you side by side to find a plan that fits your needs.
We will work with you every step of the way to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time anymore searching for multiple insurance companies because we will do the dirty work for you.
We will shop your case to different insurance carriers and get you the best price.
We work with many A+ rated insurance carriers that specialized in covering healthy or high-risk clients like you. We will search for all those companies to get the best rate. We will match you up with the best burial insurance company that gives the best rate.
We will assist you in securing the coverage you need at a rate you can afford. So, if you are looking for insurance, or burial insurance, or final expense life insurance, we can help. Fill out our quote form on this page or call us at (888) 862-9456 and we can give you the best quotes life insurance.