Lemonade Life transitions to a new partnership

According to the Texas Department of Insurance, as of Feb 28, 2024, Lemonade’s latest carrier appointment is with Banner Life, a subsidiary of Legal & General.

In alignment with this, Lemonade’s website displays a message suggesting the company no longer works with Bestow:

“Lemonade Life Insurance Agency, LLC (LLIA) is acting as the agent of Legal & General America, whose life insurance products are underwritten and issued by Banner Life Insurance Company Urbana. Banner products are distributed in 49 states and in DC. Banner Life is not authorized as an insurer and does not do business in New York. The Legal & General America companies are part of the worldwide Legal & General Group. OPTerm policy form # ICC21-DTCV and state variations. Premiums based on preferred plus non-tobacco, preferred non-tobacco, standard plus non-tobacco, standard non-tobacco, preferred tobacco and standard tobacco underwriting classes. Policy descriptions provided here are not a statement of contract. Please refer to the policy forms for full disclosure of all benefits and limitations. LLIA receives compensation for the insurance policies it sells. Products or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply. Our application asks about your lifestyle and health.”

As background, we introduced Lemonade’s term life back in January 19, 2021. Back then, coverage was issued by North American Company, a Chicago-based provider of life insurance and annuities that also works with Bestow. Policies started at $9 per month. Now, according to its site, policies start at $8.

According to our sources, Legal & General has been in talks with Lemonade for years, but the transition officially occurred on March 22, 2024. This marks phase one of the partnership. The shift was driven by unsatisfactory conversion rates through the Bestow funnel, which worked well for very healthy individuals but not for those needing to show EHR or APS. Furthermore, Legal & General’s term life pricing is cheaper than most, 95% of the time. Under this deal, Legal & General pays Lemonade a commission for each policy sold; however, if Lemonade doesn’t meet a certain premium threshold, it must pay Legal & General a fee to cover the opportunity cost*.

* According to Lemonade, in an email sent on April 19, the statement “however, if Lemonade doesn’t meet a certain premium threshold, it must pay Legal & General a fee to cover the opportunity cost” is incorrect.