Life Insurance

Lemonade Life Insurance: Quick Coverage You Can Buy Online

Lemonade Life Insurance: Quick Coverage You Can Buy Online

Editor's Rating

Healthy adults could find cheap life insurance from Lemonade without having to take a medical exam.

Good for

  • Finding affordable term life insurance
  • Getting a quick online quote without a medical exam

Bad for

  • Shoppers looking for more than $1 million of coverage
  • People younger than 21 or older than 55
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Editor's Rating

Healthy adults could find cheap life insurance from Lemonade without having to take a medical exam.

Good for

  • Finding affordable term life insurance
  • Getting a quick online quote without a medical exam

Bad for

  • Shoppers looking for more than $1 million of coverage
  • People younger than 21 or older than 55
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Lemonade offers cheap life insurance, especially for young people 21 years or older. Unlike other 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 those who are wary of entering personal details online, such as their Social Security or driver’s license number, might look elsewhere.

Lemonade term life insurance

The average cost of a 20-year term life insurance policy from Lemonade is $240 per month for healthy 35-year-olds, but rates change with age and sex.

Lemonade offers term life insurance for periods of 10 and 20 years. Users can elect to purchase up to $1 million of coverage. Lemonade advertises a low rate of $9 per month, but it's more likely that most applicants will see higher premiums depending on their term limit, policy face value and personal details.

We found that the average cost of life insurance for a healthy 35-year-old applicant is $240 per month, with men paying more and women paying less. The healthiest individuals — those in Lemonade's preferred plus tier — see the lowest rates. Those on the preferred tier pay 21% more than the healthiest people, and those on the regular tier pay 49% more than those classified as preferred plus.

Health tier
Men
Women
Preferred plus$255$225
Preferred$325$280
Regular$495$445

Non-smokers pay far less per month than smokers for Lemonade life insurance. The average cost of a 20-year term life insurance policy for a smoker is $945 per month. Smokers aren't classified as premium plus by Lemonade. Instead, the healthiest smokers are grouped in the preferred tier and pay more than double what a comparable non-smoking applicant does.

Health tier
Smoker
Non-smoker
Preferred plusN/A$240
Preferred$945$303
Regular$1,273$470

Lemonade coverage restrictions

Lemonade life insurance is available to generally healthy applicants between 21 and 55 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 term life insurance quotes

Compared to the national cost of life insurance, coverage from Lemonade is a more affordable option for many people. Considering other online life insurance companies, Lemonade is more affordable at the lowest coverage levels. However, as shoppers add more coverage to their policies, it becomes slightly more expensive when compared to Ladder Insurance, another online provider.

chart monthly rates Lemonade $21, Ladder $18, Fabric $24

Monthly rates shown are for a 35-year-old man in excellent health.

While Lemonade life insurance is cheaper than other insurers on some levels, applicants older than 55 or those looking for more than $1 million of coverage will have to look elsewhere. Still, for those who don't want to take the time to get a medical exam before purchasing a policy, Lemonade is a good option.

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
Show All Rows

Rates displayed are for non-smokers.

Lemonade life insurance reviews and ratings

Lemonade works with North American Company for Life and Health Insurance to provide its coverage. This means that the prices applicants are quoted, as well as the underwriting of the policy, come from North American. Therefore, if the insured passes away, the beneficiary would interact with North American if they had to make a claim.

Holding a Complaint Index under 1.0 from the National Association of Insurance Commissioners (NAIC), North American Life and Health Insurance receives fewer complaints than expected for its market share, or size. 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 shown in this study reflect those for a 20-year term life policy.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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