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Legal & General Life Insurance
Company Review
Legal and General Life Insurance was formed 70 years ago in 1949. It began as Government Employees Life Insurance (GELICO) and became a subsidiary of Legal and General Group PLC in 1981. The name was changed to Banner Life in 1983 when it became the flagship company within Legal and General. Eight years later, William Penn Life Insurance of New York became a part of Banner Life’s corporate group. Since then, the management for both companies has been consolidated at the senior level.
Legal & General Life Insurance
- 3275 Bennett Creek Avenue
Frederick, MD 21704
Advantages of Legal and General
Legal and General’s product options shine for those who want low rates and may be older or have a pre-existing condition. These rates are offered through flexible payment options and term limits, which sets Legal and General apart from its competitors. Because of this type of underwriting, Legal and General can offer a wide variety of products to individuals who would otherwise not qualify.
For example, one of the major highlights of this company is its age flexibility. While many other companies might reject an older individual depending on the person’s age, Legal and General offers term policies for clients as old as 95, twenty years later than most competitors.
Here are some more examples of the flexibility provided by Legal and General:
- Waiver of Premium: This option allows you to avoid having to pay premiums if you suffer a total disability, meaning that you are unable to earn an income.
- Policy Conversion: With policy conversion, you can exchange your term policy for a universal life insurance policy with the same underwriting class as your existing term.
- Flexible Payment Schedule: While many companies may require monthly or annual premium payments, Legal and General allows for a more flexible payment schedule to match your financial ability. You can make premium payments monthly, quarterly, semi-annually, or annually.
- Accelerated Death Benefit: This is a rider that can be added to your policy for increased flexibility. It allows you to access your death benefit early in the case of the onset of a terminal illness.
Disadvantages of Legal and General
While there are many advantages to be enjoyed when choosing Legal and General, there are also some things that you may want to keep in mind that could interfere with your coverage plans:
- There is no coverage option that does not require a medical exam. A no medical exam life insurance policy allows those who do not want to undergo a medical exam to receive coverage after just a few brief health questions or even receive guaranteed coverage. If you do not think that you will pass the medical exam, other companies may provide better options.
- While the products they have are more flexible than most, the number of products available is smaller than others.
- The low prices for their policies come at the cost of time. While some policies (particularly no medical exam policies) can be approved in a few days, Legal and General takes longer due to a thorough underwriting process.
Available Products
Term Life Insurance:
Inexpensive term life insurance plans are the primary advantage at Legal and General. Not only do they provide coverage for healthy individuals at an extremely low price, but they also can provide below-average rates for individuals with conditions such as diabetes.
The term plans available through Legal and General can be purchased with policy lengths as short as 5 years to as long as 30 years, making them perfect for mid- to long-term financial goals. With their level premiums, your payments are locked in for the term period. If you wish to renew afterward, you can expect the premium rate to rise.
Universal Life Insurance:
The universal life product that is available through Legal and General is called Life Step UL. Like all permanent policies, it provides coverage for the policyholder’s entire life and accumulates cash value. Universal coverage is known for its flexibility, and you can choose to have your premiums reduced if you choose a shorter term period. For example, you may qualify for lower rates if you are healthy and you choose to have your policy expire at age 100 rather than for your entire life.
Legal and General Ratings
While some states have legislation in place to provide coverage to the clients of insurance companies that go out of business, it is always best to choose a company that you believe will stand the test of time. A life insurance company with strong ratings is capable of honoring the commitments that it makes to its policyholders. These ratings are indicators of the financial strength and capability of a company.
| Agency | Rating | Description |
| A.M. Best | A+ | Superior |
| Standard & Poor´s | AA- | Very Strong |
| Fitch | AA- | Very Strong |
| Comdex Score | 94 |
Conclusion
Ultimately, Legal and General is an ideal option for some individuals. For those with certain pre-existing conditions and older clients, the flexibility offered by this company may make obtaining coverage more feasible. On the other hand, younger and healthier clients will also be drawn toward its lower term rates.
After doing your research on life insurance companies, it's important to work with an independent agent or company that has access to more than one insurance carrier, to discuss your needs. This way, you will be able to make an objective comparison of the best term life insurance companies and their benefits, available policies and premium quotes.
Purchasing life insurance can be an overwhelming experience. With so many options to choose from and factors to consider, it can be difficult to make the right decision. That’s why we do the hard work for you. Contact us today to get a free quote and find help shopping for the policy that will help you protect your loved ones in the long term.
