Have you heard of USA Family Protection Life Insurance? You may have seen the commercials on TV advertising funeral and final expense coverage up to $50,000 for less than $1 per day with no medical exam required.
The fine print on the "less than $1/day" shows that this rate only applies to a 50-year-old female who doesn't smoke, is in excellent health, with a preferred risk rating of $10,000 in coverage. If you don't fit that demographic, you likely won't be able to get a final expense policy for that cheap from the USA Family Protection Insurance company.
Here's what you need to know about USA Family Protection Insurance Services, so you can decide if they are the right life insurance carrier for you.
USA Family Protection/Lumico Life Insurance Offerings
When it comes to life insurance, USA Family Protection Insurance is a name that often comes up, thanks to those catchy commercials offering coverage for less than a dollar a day. The life insurance carrier is located in Armonk, New York. They were founded in 2020 and offer insurance products in 50 states, including auto and home insurance.
However, USA Family Protection insurance is actually provided by Lumico Insurance, and both companies have their pros and cons.
USA Family Protection and Lumico Insurance are relatively new players in the insurance industry, with only six years of operation. Lumico Insurance is backed by the Swiss Re, a well-established Swiss company that has been around since the 1800s.
Life Insurance Products
Under the USA Family Protection umbrella, Lumico Insurance provides various coverage options, including whole life insurance and final expense insurance. Lumico's whole life insurance policies offer coverage for individuals aged 18 to 70, with face amounts ranging from $30,000 to $1,000,000.
The final expense insurance offered by Lumico through USA Family Protection comes in three tiers: Preferred, Standard, and Modified.
The Preferred Plan is available for individuals between the ages of 50 and 80, with face amounts decreasing as the policyholder gets older. The Standard policy is for those aged 50 to 85, offering a maximum face amount of $30,000. The Modified Plan is designed for individuals with pre-existing conditions aged 50 to 80. It's important to note that some final expense policies have a graded death benefit, which means the full death benefit may not be paid if the insured passes away within the first three years of the policy.
Lumico's life insurance policies also come with riders to enhance coverage. The Accelerated Death Rider allows policyholders diagnosed with a qualified terminal illness to access their death benefit before passing away. Additional riders, such as the Accidental Death Rider and Dependent Child Rider, provide extra protection and support for policyholders and their families.
Other Insurance Options
Apart from life insurance, Lumico Insurance offers other coverage options, including term life insurance, accidental death insurance, and Medigap policies. Lumico's term life insurance, called "Protection Now," provides coverage for 10, 15, and 20-year terms, with face amounts starting at $25,000. The availability of a 30-year term is limited to individuals under the age of 50. The company also offers Accidental Death Insurance for those seeking a safety net against accidental passing.
For individuals on Medicare, Lumico Insurance offers Medigap policies to cover the gaps in Medicare Parts A and B. These policies, such as Plans A, F, G, and N, provide additional coverage for prescription drugs, deductibles, and coinsurance.
USA Family Protection/Lumico Final Expense Life Insurance
Most seniors are interested in final expense coverage, which can cover funeral expenses and other final expenses or leave something behind for kids or grandkids.
Final expense insurance, also known as burial insurance or funeral insurance, is a type of life insurance policy specifically designed to cover the costs associated with a person's final expenses after their death. It is primarily intended to provide financial assistance to the policyholder's loved ones to cover funeral and burial costs, medical bills, outstanding debts, and other end-of-life expenses. It's usually easier to qualify for final expense coverage because there are no medical exams involved.
USA Family Protection Life Insurance company's final expense plan for seniors is whole life insurance that lasts until death. This burial insurance policy provides coverage up to $30,000. When the insured person passes away, the beneficiary can use the death benefit to pay for the funeral, honor their final wishes, or however they see fit.
Although there is no medical exam to complete, there are some health questions to answer as part of the application process. Your answers to the questions determine if you're approved and whether you qualify for standard or preferred rates or a modified burial insurance plan.
USA Family Protection/Lumico Life Insurance Company Final Expense Preferred Plan
If you can answer no to all the health questions on the final expense insurance application, you'll save money at a preferred rate.
USA Family Protection/Lumico Life Insurance Company Funeral Insurance Standard Plan
If you have ever been treated for permanent paralysis or Parkinson's disease but have had none of the following diagnoses in the last two years, you may qualify for the standard plan:
Connective tissue disorder
Inpatient treatment for mental health issues
Treatment for alcohol or drug abuse
You also cannot have been convicted of or pled guilty to a felony, been incarcerated, on probation or parole, or have over four driving violations or one DUI in the last two years. While these are car insurance-related offenses, they can also affect life insurance eligibility.
Under the standard plan, you can apply between the ages of 50 and 85. There is a graded death benefit for the first three years:
If you die in the first year, your beneficiary receives 25% of the death benefit
In the second year, 50%
In the third year, 75%
After the third year, your beneficiary receives the full death benefit, as is the case if you die an accidental death.
USA Family Protection/Lumico Life Insurance Company Burial Insurance Modified Plan
Unless you die an accidental death, your beneficiary will receive a modified death benefit for the first three years:
10% in the first year
25% in the second year
50% in the third year
Can I Be Denied A Policy By USA Family Protection Insurance/Lumico Company?
Yes, you can. If you are currently in a nursing home, hospital, hospice, or bedridden or have been diagnosed with a terminal condition with less than 12 months to live, Lumico will decline you during the application process.
USA Family Protection/Lumico Reviews and Ratings
Before deciding to choose a carrier, whether it's for car insurance, home insurance, or life insurance, consider customer insurance reviews and third-party ratings. They can tell you a lot about how the company operates, including how they interact with potential and existing customers and how they handle the claims process.
USA Family Protection/Lumico Ratings and Reviews - BBB
USA Family Protection Insurance received a Better Business Bureau accreditation in 2020 and has an A+ rating. It also doesn't have any customer complaints filed.
Great, right? Well, that's not the whole picture.
Lumico, the company that issues the life insurance policy, is not accredited by the BBB, even though it's been in business for over 50 years. It has 49 complaints closed in the last three years and 9 in the last year.
With 68 customer reviews, it has 2.54 out of 5 stars. The insurance reviews complain of billing issues, long claims processes, and mass amounts of robocalls. More on that below.
USA Family Protection/Lumico Ratings and Reviews - Class Action
There is a proposed class action lawsuit filed in 2021 against Lumico Life Insurance Company and Assurance IQ for placing thousands of robocalls and text messages without prior consent. Assurance IQ markets for Lumico.
If you sign up for anything with Lumico, be warned that you could end up getting more than you bargained for from this business.
USA Family Protection/Lumico Ratings and Reviews - Glassdoor
You can also tell a lot about a business by what its employees say. Although there are only two reviews on Lumico's Glassdoor page, the single negative review is worth a review.
The former employee advises the company is shady; several sources have outed it and even made it onto Judge Judy.
Many customers called in to complain about the claims process taking months or not even getting paid at all. When buying life insurance, the claims process should be easy and only take months in special circumstances.
Reviews like this are often provide a glimpse into the true nature of a company and why you should compare not only quotes, costs, and coverage but also customer and employee reviews.
Compare and buy
USA Family Protection Insurance offers a number of policies, and if you fall in a favorable demographic, they have affordable policies. But the lack of experience and accreditation (and the fine print on their ads) should you give some pause.
Considering the potential class action lawsuit pending and the revealing former employee review, you may want to consider all of your other options before moving forward with Lumico and USA Family Protection Life Insurance.
When you're ready to look at a few life insurance quotes from reputable companies, call us at Final Expense Direct. Our agency will help you find the right life insurance products (including final expense plans) based on your unique insurance needs, compare costs from different carriers and recommend plans with affordable rates, and get you approved right over the phone. Not only can we save you money, but we also promise not to spam you with calls.
Other Final Expense Company Reviews: