“Legal & General” is a multinational protection and investment company that is located in London, United Kingdom.
The company was founded in 1836 and has gained a lot experience since then. The company operates in a lot of countries: United Kingdom, United States, India, France, Germany, India, the Netherlands and Gulf.
The company is responsible for more than £370 billion worldwide. The company has 7 million customers solely in United Kingdom for their life assurance, pensions, investment and general insurance plans.
Life insurance is one the most developed business areas of “Legal & General”.
The company offers three main life insurance plans: term life insurance, mortgage life insurance and over 50s life insurance.
What is more, “Legal & General” provides the client two additional benefits: critical illness cover and income protection benefit.
“Legal & General” offers people over 50s life insurance plan without asking them to undergo a medical check up. There are three variations of over 50s life insurance plans: fixed plan, increasing plan and insured funeral plan.
Fixed plan starts from £5 a month. This plan is designed for those people that need life insurance but cannot afford to pay high premiums.
Over 50s life insurance plan guarantees that the premiums will not rise and that the cover will not decrease.
However, the individual has to be aware of the fact that inflation after some years will reduce the true values of the plan.
Increasing life plan also starts from £5 a month but the premiums are likely to increase with every increase of the cover.
The biggest advantage of this life insurance plan is that the periodic increases in cover allow the policyholder to protect the death benefit from inflation.
The plan is reviewed every year and the cover increases in line with RPI (retailer price index). For every 1% increase in the cover the premiums are increased by 1.5%.
The funeral plans are designed to cover the cost of traditional cremation funeral.
In order to offer the client this plan “Legal & General” collaborated with “Dignity” that are one of the leading insurance provides in United Kingdom and has a network of more than 560 experienced directors.
The plan is reviewed annually and the initial amount of money starts from £3,145. Every year the cover is increased in line with inflation and for every 1% increase in the cover the premiums increase by 1.5 %.
Critical illness cover designed by “Legal & General” pays out a lump after the diagnosis of one of the illness that are included in this list.
At the moment there are 39 different illnesses in the list. The list includes blindness, cancer, coma, dementia, heart attack and other. It is very important to know that critical illness cover has some limitations.
For example, the person that suffered liver failure will be given the cash benefit only if the illness reached the advanced phase.
People suffering from other illnesses like multiple sclerosis or loss of speech can only expect to get the payout if the symptoms are permanent and the disease is incurable.
The person that decided to purchase critical illness cover can choose between guaranteed and renewable premiums.
Mortgage life insurance helps the beneficiaries of the contract to pay off the mortgage after the death of the insured person.
As a result, family members can keep the house and do not worry about the outstanding balance of the debt.
“Legal & General” offers two separate mortgage life insurance policies: mortgage term assurance and mortgage decreasing term assurance.
The premiums for both of these policies start from £6 a month.
The cover and premiums of mortgage term assurance always remain the same unless the person decides to alter the cover.
On the contrary, the cover of mortgage decreasing term insurance decreases together with outstanding balance of the debt.
Term life insurance is designed to make lump cash payment for the dependents of the insured person after his death.
The cover lasts for a fixed number of years and after that expires. Each term life insurance contract comes with a terminal illness cover.
This means that the lump cash sum can be paid to the beneficiaries not only because of the death of the insured person but also after the diagnosis of terminal illness.
The premiums of term life insurance are guaranteed to remain fixed for all time period of the contract if the cover is not altered.
The cover for this life product starts from £6 a month.