In this article I’m going to talk about one of the big financial service providers, Legal & General; what they have to offer in the way of protection policies, and how they measure up in terms of paying out. Lets ask the big questions “How Good Is Legal & General’s Life Insurance?”
It makes sense to look at the big boys first when you are doing research on providers for your insurance needs. These are companies who have been trading for a long time – sometimes 100’s of years – and have a long list of satisfied customers, years of experience, and a great reputation. So, before you consider the new kids on the block, let’s take a look at an old favourite.
Who Are Legal & General?
Legal & General is a multinational financial services company that is based in London. If you’re not 100% sure which one I mean, it’s the one with the little umbrella logo; indicating that they encompass all financial products, including pensions, investments, and insurances. Know who I’m talking about now? Good.
According to the wonders of Wikipedia. The company was founded in 1836 by Sergeant John Adams and 5 other lawyers in a coffee shop in Chancery Lane, proving that all good ideas start with a group of mates and caffeine (not a group of mates and beer – that results in very different ideas), but anyway, I digress.
Originally the company was called the New Law Life Assurance Company and was restricted to those in the legal profession. Today their financial services are for everyone. Legal & General are the UK’s largest provider of Life Insurance products alone and have even won awards for their Income Protection. In fact, Legal & General has over 10 million customers worldwide, and they can’t all be wrong, can they?
How About Their Turnover and Profits?
I mean, it’s A LOT; profits before tax in 2019 was £2,102 million, and bear in mind profit is just the earnings after all the expenses etc – in other words, the end results. So how much was Legal & General’s turnover if the profit was that high? I’ll tell you – £42,477 million. Something to think about next time you’re sitting in a coffee shop discussing a business idea with mates I reckon!
It’s all very well and good that they’re raking in the money, but what about the important bit – how much do they pay OUT? And how often?
In 2019 Legal & General paid out over £392.4m in claims to customers. That’s the equivalent of £911,000 every day. That’s a lot in anyone’s book!
Legal & General paid out 97% of all claims in 2019, with a total of 10,721 claims made – that’s 28 a day. The average customer pay out was £36,608,
The three main conditions claimed against were cancer (37%), cardiovascular disease (18%), and pneumonia (5%)
Legal and General’s Added Benefits
OK, so we know Legal & General have a long tradition of supplying financial protection and are trusted by millions. We also know they pay out in the majority of cases. However, that doesn’t really answer the burning question? How good is Legal & General’s life insurance? What about those little touches and unique selling points that can make all the difference to a customer saying, “Yep, I’ll go with them,” or continue to shop around?
I did look around for an insurance company that promised instant weight-loss and a date with a supermodel if you signed up, but I couldn’t find one. However Legal & General does have some great stuff on offer if you’re still on the fence.
Legal & General offers a number of added benefits, and at no extra cost…or in other words…FREE.
Extras such as:
- Accidental Death Benefit – this is given whilst your application is being processed, giving you peace of mind that you are covered in case of accidental death, even if you pass away BEFORE you’ve even been accepted!
- Terminal Illness Cover – pays out the full amount of cover early when life expectancy is less than 12 months
- Free Life Cover – If you are taking out life cover to cover a mortgage, Legal & General offer free life cover whilst your application is being processed
- Making Policy Changes – You may be able to increase your cover WITHOUT the need for further medical information on certain life events – such as increasing your cover amount because you’ve had another child for example
And what about the human side of it? We all prefer to hear that a company has a social conscience and is out there planting trees rather than kicking puppies; for some it makes all the difference when it comes to deciding where to take their business. So how does Legal & General shape up? Evil atmosphere-polluting corporation, or nice guys who are doing their bit for the planet?
Spoiler alert: It’s the latter.
- Community – £4.4m donated to UK and US non-profit organisations
- Financial Literacy – Legal & General has reached over 4,000 students and 133 teachers with its secondary financial education programme
- Climate Action – From the 2013 baseline UK occupied offices have reduced their energy consumption by 38% and as part of their Climate Impact Pledge, Legal & General invest in onshore wind farms and digital software for the energy grid; investing more than £1 billion in renewable energy infrastructure.
So to answer your question, “How Good Is Legal & General’s Life Insurance?”, all in all, they are a lovely bunch.
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