Specializing in insurance and personal finance, Chris Kissell is a writer and editor whose work has been featured at Forbes, U.S. News & World Report, MSN Money, Fox Business, Yahoo Finance, Bankrate and Money Talks News. He is based in Denver.
Nupur Gambhir is an insurance expert and managing editor of Insure.com. She specializes in life and health insurance content, and has experience as a marketing consultant.
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Our take: Lemonade offers term life insurance, but it provides other types of insurance policies, too — from renters and home to auto and pet insurance — making it easy to get all of your coverage from one place and minimizing all the work it takes to get a policy. The company also offers discounts for buying more than one policy.
Lemonade offers customers a lot of flexibility. But in addition to providing a range of insurance products and discounts, Lemonade is also a certified B corp., a certification given to socially responsible companies. That means the insurer is working to protect more than just your finances.
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*NR = not rated
Trustworthiness: The Better Business Bureau evaluates businesses on their behavior, trustworthiness, and performance. A business with a high ranking from the BBB can be trusted to meet its commitments.
Financial strength: A.M. Best evaluates a company’s financial health and its ability to meet its financial obligations. AM Best does not rate Lemonade.
Customer experience: Trustpilot is an online platform for individuals to provide reviews of companies and their customer experience. Trustpilot gives Lemonade a rating of 4.3 out of a possible 5.
Additional product line details: Lemonade only offers one type of life insurance policy — no-med term life insurance. However, it doesn’t just offer life insurance. It also provides home, auto, renters and pet insurance for applicants with multiple financial responsibilities and obligations.
For the most part, Lemonade’s rates are slightly above the industry average, barring a few outliers. For example, a 25-year-old male purchasing $1 million in coverage for 20-year-term pays $51 from a policy from Lemonade, while the industry average for the same level of coverage is $42. Meanwhile, a female purchasing $1 million in coverage for 20-year-term pays $29 from a policy from Lemonade, while the industry average for the same coverage is $20.
How much Lemonade costs for healthy nonsmokers:
The following table shows Lemonade rates by age and gender for healthy non-smokers purchasing 20-year term policies.
How much Lemonade costs for smokers:
The following table shows Haven Life monthly rates by age and gender for smokers purchasing 20-year term policies.
The following table shows how Lemonade’s monthly rates for a healthy 35-year-old compare with selected competitors for $500,000 in coverage.
Company background: Lemonade was founded by Shai Wininger and Daniel Schreiber in 2015. Lemonade prides itself on its technology, which enables claims approval in as little as three seconds.
Interesting tidbit: Lemonade is a public benefit corporation organized under Delaware law. Through a Giveback program, unclaimed money is donated to nonprofits its policyholders choose.