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Legal & General (formerly Banner Life) life insurance review 2020
This top market leader excels at low-cost protection — even if you’ve had medical issues.
finder.com’s rating: 4.5 / 5.0
★★★★★
Get a quote if…
- You want the option to convert your term policy to a permanent policy.
Pick something else if…
- You are in poor health.
20 to 75
Issue Age
$100,000 to $10,000,000
Coverage Amount
Depends on policy
Medical Exam Required
Details
| Free Quote | Online, Phone |
|---|---|
| Insurance Products | Term, Universal, Final Expense |
| Issue Age | 20 to 75 |
| Coverage Amount | $100,000 to $10,000,000 |
| Term Lengths | 10, 15, 20, 25 or 30 years |
| Cost | As low as $8 per month* |
| Medical Exam Required | Depends on policy |
| Ways To File A Claim | Online, Phone, Mail |
| Ratings, Accreditation and Memberships | A.M. Best: A+, Standard & Poor's: AA-, Fitch Ratings: AA- |
| Customer Service Options | Phone, online |
| Policy Riders Offered | Yes |
Expert review
Review by
Julia Cameron
julia.cameron@findercrew.comJulia Cameron is a writer and editor who has experience in finance, mergers and acquisitions, content marketing and immigration law. She has a passion for interior design and an affinity for Old Florida, where she lives with her family.
Expert review
If you’re in the market for term, whole and universal life insurance, Legal & General is a strong contender with competitive rates, comprehensive plans and more lenient underwriting. But you’ll pay an annual fee to maintain your policy, and almost all products require a full medical exam.
What types of life insurance coverage does Legal & General offer?
Legal & General offers term life and universal life insurance under the brand names OPTerm and Step Up.
Nonsmokers in good health can choose from terms of 10 to 30 years in five-year increments. Applicants older than 75 can’t buy policies with terms above 15 years. That cutoff falls as terms lengthen, with 30-year policies available to applicants ages 20 to 51 only.
The company’s Life Step universal policy also lets an insured choose a level premium option that guarantees lifetime coverage regardless of future economic conditions. And a Life Step policyholder can elect to prepay premiums to provide lifetime coverage with no further payments.
OPTerm term life coverage. Legal & General advertises that a 20-year-old woman in good health can obtain a 10-year OPTerm policy with a benefit value of $100,000 for as little as $7 a month. OPTerm coverage can range to as high as $1 million or more.Term life policies from the company can be renewed up to age 95 at a higher rate, but the insured’s underwriting classification won’t change — even if you experience a significant change in your health during the policy period. For many term life carriers, renewal options can phase out as early as age 65.
- Policies of 10, 15, 20, 25 and 30 years
- Rates as low as $7 a month for $100,000 in benefits
- Renewable up to age 95
- Receptive to higher-risk applicants, such as those with diabetes
Step Up universal life. The insurer allows policyholders to convert term policies to universal life insurance, which builds up a cash value as long as you pay your premiums. You can draw on the cash-value balance to pay premiums.You can also borrow against your policy at a 7.4% interest rate. But annual interest must be prepaid at the start of each year the loan is outstanding.
- Convertible from term life policies up to age 70
- Prepay to eliminate future payments while retaining coverage
- Permanent coverage with flexible terms and payment options
- Builds cash value that you can use to pay premiums
What riders can I add to my life insurance policy?
In general, standard life insurance policies won’t cover all of the contingencies of life, like life-altering disabilities or children who need a bit more time moving out on their own.
To supplement your policy’s coverage, Legal & General offers a variety of riders that include:
- Disability premium waiver. Policies with this benefit remain in force without payment if you’re fully disabled for at least six months.
- Conversion to permanent. Convert your term policy to universal insurance that covers your entire life.
- Flexible payment schedule. Pay your premiums monthly, quarterly, twice yearly or annually. Or pay lifetime universal coverage over a set period to, for instance, satisfy all premiums necessary before retiring.
- Accelerated benefit rider. Collect the lower of $500,000 or 75% of your policy’s value in benefits if you’re diagnosed with a terminal illness.
- Term laddering rider. Purchase additional coverage for specified needs that arise within the underlying policy period, such as a mortgage or college tuition.
- Children’s rider. Until you’re 65, use your policy to cover children under 25 years old.
The company also charges an annual $60 policy fee as part of its premium.
How much does Legal & General insurance cost?
Below are the monthly premiums for a $500,000 20-year term life insurance policy from Legal & General for an individual in good health. Rates are provided by Quotacy and are valid in all states except New York and Montana.
| Age | Male | Female |
|---|---|---|
| 20 | $19.69 | $16.68 |
| 25 | $19.69 | $16.68 |
| 30 | $20.12 | $17.11 |
| 35 | $21.84 | $18.49 |
| 40 | $32.68 | $25.49 |
| 45 | $49.36 | $38.70 |
| 50 | $74.39 | $55.47 |
| 55 | $119.54 | $89.44 |
| 60 | $205.97 | $145.00 |
| 65 | $394.73 | $372.38 |
| 70 | $804.87 | $730.14 |
How do I get a low rate?
While there are many term life carriers that will provide coverage without requiring a medical exam, Legal & General usually requires a full health evaluation when underwriting your policy.
And like other providers, Legal & General rewards excellent health and habits with lower rates using tiered categories it calls “standard plus,” “preferred” and “preferred plus.”
To get the best rates, you’ll need to meet specific guidelines around your:
- History of tobacco use. Better rates go to applicants who haven’t smoked in the past three years, two years and 12 months, depending on the tier.
- Alcohol and substance use. The best rates go to those with no history of abuse, with more lenient years-based requirements for standard plus and preferred tiers.
- Residency. You must be a U.S. resident or permanent citizen for the past two to three years, depending on the tier.
- Personal health. Your personal history should be free of specified diseases and impairments.
- Family health. Requires no cardiovascular disease or cancer in parents or siblings before age 60.
- Driving record. Your history should be free of DWIs, DUIs, suspensions and other convictions in the past five years with no more than two moving violations in the past three years.
- Blood pressure. Requirements range from numbers that are no higher than 152/92 to 136/86 in the past two years, depending on the tier.
- Occupation or hobbies. Pilots and high-risk careers may require an exclusion rider.
If you pay your policy upfront annually, you may qualify for an additional 5% off your premiums.
Pros and cons of Legal & General
Pros
- Accepts most applicants. Competitive underwriting includes those with diabetes, a history of smoking and other health risks.
- Flexible payment options. Adjust your payments to better fit your household budget.
- Many years in the business. Offers superior financial strength and a history of stability.
- Fast-track claims. Priority payment for benefits of up to $10,000.
Cons
- Medical exam required. Most policies require a full health work-up.
- Strict eligibility for preferred rates. The best rates go to those with nearly perfect health and habits.
- Annual fee. You’ll pay a $60 policy fee each year as part of your premium.
Compare life insurance companies
Legal & General reviews and complaints
Legal & General earns a superior A+ rating for financial strength from A.M. Best and an A+ from the Better Business Bureau.
Customer reviews on BBB are generally negative, citing problems with service and claims. But a good sign is that nearly all reviews are directly addressed by a Legal & General representative, indicating care with support.
How does Banner protect my data?
Banner collects your personal information in order to offer you products and services and to provide customer service.
In an effort to safeguard your data, Banner uses SSL encryption, and takes precautions to protect information stored on its computer networks.
How do I sign up?
You can’t sign up for life insurance online with Legal & General; you’ll need to work with an insurance agent. To do so, you can use the Find An Agent tool, or call 888-984-3393 to speak with a licensed agent.
I’ve signed up. What happens next?
If you’re approved, the insurer will send you a copy of your policy. Once you sign and return it with your first payment, your coverage is activated.
More about Legal & General
Founded in London, Legal & General offers coverage throughout the US. It provides the stability of a history that stretches back over 180 years and the market strength of commanding over $1.1 trillion in assets under management and some 10 million customers worldwide. A.M. Best ranks it the world’s seventh-largest insurer.
Legal & General has a reputation for being among the most aggressive term life providers, meaning it will take on risks by covering people other insurers might turn away. And it is known to be among the most competitive on pricing, particularly for high-risk applicants such as those with diabetes.
While it has plenty of positives, if Legal & General’s policies and riders don’t suit your needs, take the time to compare life insurance providers.
How do I file a life insurance claim with Legal & General?
For benefits of $10,000 or less, Legal & General applies a fast-track process that can accelerate payments. Call the claims department to start the process.
For all other claims, you can start the process online.
Complete the type of claim, your personal information and details on the insured or decedent. Indicate where Legal & General should send your claims package, and submit your claim.
After your claim is received, Banner reviews its records to verify that your policy is in force. Your indicated recipient will receive all forms necessary to complete the claim.
What information will I need to submit a claim?
In most cases, you’ll need to provide:
- Proof of Death claimant’s statement
- A certified copy of the policyholder’s death certificate
Additional requirements apply to claims made by beneficiaries who are minors, for estates or trusts and in situations where the primary beneficiary died outside the US or Canada.
Like many life insurers, Banner’s policies include a two-year contestability phase at the outset of a term policy under which it can conduct a deeper investigation into a claim presented during this period.
Frequently asked questions
Life insurance ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
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