Legal and General Life Insurance is among the top life insurance providers in the United Kingdom. Established in 1836, the company provides insurance, pensions, and investments all over the world. Legal and General Life Insurance reviews from respondents say that 98% of clients will buy insurance from them again.
In fact, in 2015, the company was branded as the “life insurance provider of the year.”
Let us give you a brief review of Legal and General life insurance products so that you can determine if they are the right insurer for you.
What Does Legal and General Life Insurance Cover?
Legal and General life insurance offers policies that helped protect the financial future of our clients’ family members in case of death, disability, or critical illness. Monthly premiums are paid throughout the life of the insurance policy. If the client passes away, a payout is received by the family members.
The money received from these policies can help the family members on whose behalf the insurance was taken out to pay their cost of living, funeral expenses, outstanding debts, and mortgage payment.
The exception to the life insurance policy is suicide which won’t be covered if the client dies within the first 12 months of the policy.
Legal and General Level Life Insurance
A level life insurance policy pays out a specific amount to the beneficiaries when the client passes away within a specified timeframe. The payout amount remains fixed throughout the life of the policy and regardless of when you pass during the policy term, you family or loved will know the exact amount that they will be issued.
Legal and General level term policies can be put in place for a minimum term of 1 year and a maximum term of 50 years. You must be between 18 and 67 years of age to apply.
Level life insurance policies are good policies to cover fixed costs like:
- Funeral costs
- Living cost of beneficiaries
- Interest-only mortgage
Legal and General Decreasing Life Insurance
Legal and General decreasing life insurance policy offers a lump sum which decreases with the life of the policy. This is generally in line with mortgage repayment or until the client’s children are of age.
Since the payout is reduced over time, this poses a bit of risk to the client and hence these policies are the cheapest form of life insurance. At Legal and General, decreasing life insurance policy can start from as little as £6 per month.
The minimum length of decreasing term is 5 year for this policy, and 74 is the maximum age you can apply for this policy.
Typically, decreasing term policies are used to cover a repayment mortgage.
Legal and General Over 50 Life Insurance
Legal and General over 50 life insurance can be applied for by candidates aged 50 to 80 years. Premium can start from as low as £5 per month and the estimate is determined on your age and your smoking status. No medical tests are required.
For example, a person who is 55 years old and does not smoke may have to give lower monthly premiums while a person in his 70s who is a habitual smoker will be required to give a bigger premium amount.
There is also a waiting period at the start of the policy. If you die during this time, you cannot claim insurance though the paid premiums are returned to the beneficiaries.
If you hold the policy for several years and achieve the age of 90 years, you will no longer be required to pay premiums. However, Legal and General life insurance will still cover you until you pass away.
Once a claim is paid, Legal and General prioritizes in paying out, usually within a single day the claim is filed.
The one drawback of the over 50 policy is that they have a limit and cannot exceed £10,000 sum assured. This also means the sum of the total premium paid may exceed the sum assured.
Legal and General Whole of Life Insurance
A whole of life insurance policy, as the name suggests, remains in place for the rest of your life and guarantees a payout in the event of your death. This is an ideal policy if you want to make sure your loved ones will get a decent payout.
However, if it is taken out too early, it is possible the client may end up paying more total premium than the sum assured.
Life Insurance with Critical Illness Cover
Clients who have purchased a life insurance policy through Legal and General can also add a critical illness cover to their policy if the client is diagnosed with a critical illness of specified severity.
The critical illness cover can be paid out in a lump sum to aid in the cost associated with the illness. The cover requires 31 full payment conditions as well as 2 more payments that pay 25% of cover up to £25,000. Additionally, you can also add a Children’s critical illness cover at no extra cost with a payout of £25,000 or 50% of the assured sum, whichever amount is lower.
Legal and General life insurance will cover over 40 conditions that range from blindness and heart attack to coma and cancer. Check out the full list of illnesses. The maximum term for this type of cover is 40 years.
As you can see that adding a critical illness cover to your life insurance policy will inflate your premiums and once you claim it your entire life insurance policy will expire. Additionally, the lump sum offered from critical illness cover is not as large as what is offered through a life insurance policy but it is still a big amount and can make a significant difference to you.
The critical illness payout can be used to replace lost income, make the necessary adaptation to your home, and enjoy your time with your family.
Legal and General Terminal Illnesses Cover
All Legal and General life insurance policies also include a terminal illness cover. This cover allows the client and their family to make a claim in the event that the individual is diagnosed with a terminal illness.
A terminal illness is a medical condition that can lead to an individual’s death in a 12 month period. Typically, you will be required to show a document from a medical officer verifying that you have contracted the illness.
With a terminal illness cover, you can make an early claim. With the payout, you can pay for medical treatment, get your other finances in order and spend your remaining days comfortably with your loved ones.
Legal and General Joint Life Insurance
Legal and General joint life insurance enables a client to cover two lives under a single policy. This is an affordable option and can help you save about 25% every month on premiums. However, one major drawback of this policy is that once one of the insuree dies and the policy is claimed, the surviving partner is left without any cover.
However, Legal and General also allows the clients an option to split a joint policy into two separate individual policies if the partners choose to separate.
Life Insurance in Trust
Writing life insurance in a trust is a wonderful way to assure your beneficiaries receive your inheritance in the event of your death.
Writing life insurance in trust does not require any additional cost. These are simple legal arrangement that let you leave your loved ones the rights to a policy. This trust is managed usually by a legal professional or a family member until it needs to be paid out. This can happen upon the insurer’s death or on any specific date, like the time when a child turns 18.
Legal and General life insurance in trust can last up to 125 years or however long you deem it to be necessary. Trusts set up for charitable purposes does not have any expiry date.
By writing life insurance in trust, you can:
- Minimize up to 40% or avoid inheritance tax
- Gives you greater control of what use your money will be put to
- Get faster access to money since it doesn’t have to pass through probate.
Legal and General Life Insurance Payout
One of the most common misconceptions about insurance companies is that they are reluctant to pay out your money. Legal and General reviews claim that the company pays out 98% of the claims, which is above average if you compare it to the industry standard of 99.6%.
This means in the event of death or critical or terminal illness, there is a big likelihood of a successful claim.
Legal and General Life Insurance Policy Claim
The premium payments of your life insurance policy will differ for every applicant. There are a number of factors that will contribute towards determining the estimate of your monthly premium. These include:
- The age of the applicant
- The overall health of the applicant
- Their smoking status
- Amount of coverage
- The type of life insurance policy selected
Generally, if you have high risk factors, your premium will be more costly. At Legal and General, you can start your life insurance policy for just £6 depending on what type of coverage you need.
Acceptance Criteria for Legal and General Life Insurance
In order for a person to apply to a Legal and General life insurance policy, there is a certain set of criteria they must meet:
- They must be reasonably healthy, do not have a dangerous job, and do not participate in dangerous activities.
- They must be between 17 and 77 years of age, depending on what type of policy they can take out. You can read the details here.
Clients will have the option of choosing either a level or a decreasing term life insurance policy. Once the application process has started, you will be required to give your doctor’s contact information. Some, though not all, policies may also require a process of medical underwriting.
Life Insurance Policy Cancelation
Clients have the right to cancel their policy at any time of their life. If the policy is canceled within 30 days of being made, the client will be refunded the premium. However, if you cancel after this period, you will not get any premium back.
Once your policy is canceled, your protection will cease immediately.
Legal and General Life Insurance Reviews
Legal and General achieved a 98% rating from an online survey of 470 respondents who said they would do business with them again. The company also received excellent rating from Money.co.uk and 50% of the respondents said they would recommend its services to others.
Additionally, Legal and General life insurance also has a 5-start rating from financial adviser, Defaqto.
As you can see, Legal and General life insurance policies are good options for all kinds of individuals. Senior citizens and people with preexisting conditions can enjoy the flexibility offered by this insurance provider and it is also feasible for younger healthier clients who want lower term rates.
Getting a life insurance policy can be a nerve-wracking experience as there are so many factors to consider and so many options to choose from. However, as you can see from Legal and General life insurance reviews, a huge majority of their clients are happy with their services and they have gotten high ratings from financial advisers.