Founded nearly 200 years ago, Legal & General (L&G) provides financial services and products such as mortgages, pensions, investments and insurance, including life insurance.
Its policies are provided by Legal & General Assurance Society Ltd. It is a subsidiary of Legal & General Group, which is regulated by the Financial Conduct Authority.
What types of life insurance does L&G offer?
L&G offers a range of single person and “joint” two person life insurance policies, including level term, declining term, ascending term and over 50 life insurance coverage -whole life and critical illness coverage.
Here is an overview of what each of these policies covers.
With all term insurance policies, the arrangement lasts for a specified period of time: the “term.” It can range from, say, five years to 25 or even 30 years. The length of term is often but not always tied to the length of a loan such as a mortgage.
Coverage – ‘Sum Assured’ is provided against death at any time during the term. If the policyholder survives beyond the end of the term, the policy ends with no value and no payout is made.
level term life insurance is designed to pay out the same amount whether a claim is made at the beginning or end of the policy term.
Ascending term life insurance promises to pay out a higher amount the longer the policy term, in the event of a claim. It is designed to keep pace with inflation so that the payout reflects the rising cost of living.
This growing potential benefit makes increasing temporary coverage relatively expensive.
Descending term life insurance does the opposite, with a potential payout that decreases over time. For example, it can work in tandem with a mortgage agreement where the home loan amount decreases as the customer regularly pays off the outstanding balance.
The reduction in sum insured over time means that decreasing term coverage has lower premiums than an equivalent increasing or level term policy.
If you’re between the ages of 50 and 80, over 50 life insurance promises to pay out a lump sum upon your death that your loved ones can use to pay for unpaid bills and funeral expenses. If you meet the age requirements, there is no medical examination to pass and you are guaranteed to be accepted.
Whole life insurance pays no matter when you die. This contrasts with a term insurance policy that only pays if the holder dies during the term of the plan.
Critical illness cover is a form of protection product designed to be paid out before your death if you are diagnosed with a terminal illness.
How much life insurance do I need?
The amount of coverage you need depends on your liabilities, income, savings, and number of dependents.
A life insurance calculator can help you get an accurate figure that will ensure you are not underinsured or overpaid for more coverage than you need.
How much will life insurance cost?
Although cover can start from as little as £5 a month, your premiums will depend entirely on your circumstances and the level of cover you choose. Generally speaking, the younger and healthier you are, the lower your premiums are likely to be.
How good is L&G life insurance?
Fairer Finance, which assesses financial services companies, scores 68% for L&G for customer experience. It gives the provider 83% for how it handles customer complaints, 68% for complaint reimbursement rates and 53% for transparency. Independent review aggregator TrustPilot gave L&G 4.4 stars out of 5 (based on 130 reviews).
L&G paid 97% of life insurance claims in 2020 – a total of £459.5m to 11,755 customers. It also paid 92 per cent of critical illness claims amounting to £202.5m to 2,843 customers.
Some companies offer their workers a death in service benefit that will pay a tax-free lump sum to your dependents if you die while employed.
If your company offers it, you may not need to purchase a separate life insurance policy. But it’s worth checking whether the amount your employer would pay is enough to cover your debts. Otherwise, you might consider purchasing a separate life insurance policy to cover the shortfall.
How to contact L&G
Life insurance customers can contact L&G between 9:00 a.m. and 6:00 p.m. Monday through Friday. Existing customers can manage their accounts in the MyAccount section of myaccount.landg.com
Alternatively, L&G can be found on Twitter under @landg_uk and on Facebook.