Lemonade Life Insurance Review 2024

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Written by Katia Iervasi
Assistant Assigning Editor
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Edited by Lisa Green
Assigning Editor
Fact Checked

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Lemonade

4.5

NerdWallet rating 
Lemonade sells term life insurance online, with many policies going into effect on the same day.

on Nerdwallet

Financial strength rating

Exceptional

Online purchase

Yes

NAIC complaints

Fewer than expected

Policies offered

Term & no-exam
insurance-product-card-logo

on Nerdwallet

Lemonade

4.5

NerdWallet rating 
Lemonade sells term life insurance online, with many policies going into effect on the same day.

Financial strength rating

Exceptional

Online purchase

Yes

NAIC complaints

Fewer than expected

Policies offered

Term & no-exam

In our life insurance reviews, our editorial team considers the customer and the insurer. These are some of the factors we take into account:

Policies offered. There are many types of life insurance on the market, and they fall into three key categories:

  • Term life insurance offers temporary coverage and a guaranteed payout if the policyholder dies during the term.

  • Permanent life insurance typically lasts a lifetime and builds cash value that can be borrowed against in the future.

  • No-exam life insurance issues coverage without the need for a medical exam.

Financial strength. We use AM Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. Here’s the breakdown:

  • Exceptional: A+, A++.

  • Strong: A-, A.

  • Moderate: B, B+.

Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best life insurance companies have fewer than the expected number of complaints.

Buy online. This indicates whether an insurer allows you to apply for and buy a policy completely online.

Founded in 2015, Lemonade offers a range of insurance products online. It sells term life insurance via a digital application, and policies are available in all states except New York. Policies are issued by Legal & General, and can go into effect on the same day.

The company doesn’t sell permanent life insurance.

Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure the content on our site is accurate and fair so you can make financial decisions with confidence and choose the products that work best for you. Here is a list of our partners, and here’s how we make money.

Lemonade life insurance rating

4.5

NerdWallet rating 

Lemonade earned 4.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.

Lemonade life insurance policies

Term life insurance. Lemonade offers term life insurance lasting 10, 15, 20, 25, 30, 35 or 40 years, with coverage starting at $100,000 and going into the millions of dollars. Its instant life insurance policy is open to people ages 20 to 75, but those with a history of heart disease, cancer or major medical conditions may not qualify. The application is fully online and there’s no requirement for a life insurance medical exam.

Lemonade life insurance rates

Below are monthly rates for a 20-year, $500,000 term life insurance policy from Lemonade. These are sample rates for a nonsmoking man and woman in excellent health. The final quote you’re offered will depend on factors like your age, health, lifestyle, occupation and driving record.

Age

Monthly rate — man

Monthly rate — woman

20

$18.36

$15.02

30

$18.79

$15.85

40

$29.75

$23.96

50

$69.43

$54.48

60

$199.55

$140.46

70*

N/A

N/A

Rates generated via the insurer’s site and are valid as of 3/29/24.

*Lemonade only offers 15- and 10-year term policies to applicants age 70.

Lemonade customer complaints and satisfaction

Over three years, Legal & General — the company that issues Lemonade’s life insurance policies — has drawn fewer than the expected number of complaints to state regulators for a company of its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.

How Lemonade compares to other insurers

Lemonade

Ladder

Ethos

Star rating

4.5

NerdWallet rating 

3.0

NerdWallet rating 

3.0

NerdWallet rating 

Financial strength

Exceptional.

Exceptional.

Strong.

NAIC complaints

Fewer than expected.

More than expected.

Fewer than expected.

Policy types offered

Term, no-exam.

Term, no-exam.

Term, permanent, no-exam.

Read full reviews

More about Lemonade

If you buy a policy with Lemonade, download the app to manage your coverage and update your contact details. The app is compatible with Apple and Android devices.

Lemonade also offers property and casualty insurance. Check out NerdWallet’s reviews to learn more:

How to contact Lemonade

Lemonade can be reached by:

  • Phone: Call 844-733-8666.

  • Email: Send a message to [email protected].

  • Live chat: Not available.

Life insurance buying guide

Before you start comparing companies, choose the type of life insurance you want, such as term or whole life. Decide which life insurance riders, if any, you want the policy to include. Calculate how much life insurance you need and how long you want the coverage to last. Check that the insurers you’re considering offer the coverage you’re looking for.

When comparing rates, be sure the quotes are for the same amount of coverage over the same period of time. It’s also important to make sure the policy’s medical requirements match your needs. For example, if you want to skip the life insurance medical exam but don’t mind answering health questions, confirm that the application process for each policy you're comparing aligns with that.

Price may not be the biggest driver behind your decision to buy. Look at the number of consumer complaints each company receives, as high numbers can be a red flag about the quality of service.

For more guidance, see our life insurance buying guide.

Methodology

Life insurance ratings methodology

NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.

These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Insurer complaints methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2020-2022. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

In This Review . . .