Banner Life Insurance: Is It Worth The Hype?

Banner Life Insurance is a subsidiary of Legal & General America, which also owns William Penn Life Insurance of New York. Banner offers term life insurance and universal life insurance policies, with a range of coverage options available. Banner's term life insurance policies are available in terms of 10 to 40 years, while its universal life insurance policies offer flexible premium payments and death benefits. Banner's term life insurance rates are competitive, and the company has strong financial stability with an A+ rating from AM Best. However, its universal life insurance policies are more expensive than those of competing companies. Banner Life has a low number of consumer complaints and is available in 49 states across the US, as well as Washington, D.C.

Banner Life Insurance's parent company and subsidiaries

Banner Life Insurance is owned by Legal & General America, which is a subsidiary of the multinational financial services company Legal & General Group. Legal & General Group is the ninth-largest insurer in the world, with over $1.5 trillion in total assets and $21 billion in economic and social investments, serving 10 million customers worldwide. Banner Life has been in business since 1863 and has 1.4 million policyholders and $11 billion in assets.

Legal & General America's sister brand, William Penn, offers life insurance to customers in New York. Banner Life Insurance and William Penn, together, have national reach across the United States. Banner Life Insurance also offers annuities and retirement services, which are available to customers through its parent company, Legal & General.

Banner Life Insurance's term life insurance policies

Banner Life Insurance is a good choice for term life insurance, offering a range of flexible policies with competitive rates. Banner Life is a subsidiary of Legal & General America, which also owns William Penn Life Insurance of New York. Banner Life Insurance is available in 49 states, while William Penn serves New York, giving the company national reach.

Banner Life Insurance offers term life insurance policies of 10, 15, 20, 25, 30, 35, and 40 years. People aged 20 to 75 can apply for a term life insurance policy, with coverage amounts ranging from $100,000 to $10 million. The annual price remains the same throughout the initial term, and term policies are convertible to permanent policies. Banner Life's term life insurance policies are competitively priced, with rates about 9% cheaper than other companies, depending on the applicant's age.

Banner Life's term life insurance policies include accelerated death benefits, which allow the policyholder to access up to 75% of the policy's death benefit if they are terminally ill. Additionally, term life insurance policyholders can add life insurance riders for an extra charge. These include a child term rider, which covers all children until they turn 25, and a stacking term rider, which increases coverage for a set period.

Banner Life Insurance has strong financial credentials, with an A+ rating from AM Best, indicating superior financial stability. The company also has a low number of consumer complaints, suggesting high customer satisfaction. Banner Life's term life insurance policies are a good choice for those seeking affordable coverage with flexible options and strong financial backing.

Banner Life Insurance's universal life insurance policies

Banner Life Insurance is a subsidiary of Legal and General America, which offers life insurance across the US. Banner's universal life insurance policies offer flexible premium payments and death benefits, which can be adjusted as your needs change.

The "short-pay" option allows the policy owner to complete payments early and still have lifetime coverage. Coverage is issued up to age 85 and stays in effect until age 121. An accelerated death benefit is included at no extra fee. Banner's universal life insurance policy is called Life Step UL and is available for those aged 20 to 85. It is more expensive than competing policies, but it offers a guaranteed interest rate of 2%. Term life customers can convert their policy to universal after their term is up, or after at least five years of coverage, with no additional medical exam.

Banner's underwriting process is less strict than that of other insurers when it comes to having a single issue, such as smoking or osteoporosis. Instead, they look at combinations of other health factors, meaning you're less likely to be hit with a high premium if you're very healthy overall with one medical condition or lifestyle concern.

Banner Life Insurance has very positive reviews from its customers and tends to receive fewer complaints than competing companies. It also has an A+, or Superior, financial strength rating from A.M. Best, meaning the company is very likely to be able to pay out claims regardless of demand or economic conditions.

Banner Life Insurance's riders

Banner Life Insurance offers a range of riders to enhance your coverage. However, it is important to note that these riders may not be available in all states. Here is a detailed overview of the riders offered by Banner Life Insurance:

Child Term Rider:

This rider provides coverage for your children, usually until they turn 25 years old. It offers the option of $5,000 or $10,000 in coverage for each eligible child. The coverage can be converted to a permanent policy without the need for a medical exam. This rider is ideal for parents who want to ensure their children are protected financially.

Waiver of Premium Rider:

This rider ensures that Banner Life Insurance will waive all premiums due during a period of total disability for qualifying policyholders. This rider provides peace of mind and financial relief during difficult times.

Terminal Illness Rider:

If you are diagnosed with a terminal illness, this rider allows Banner Life Insurance to pay your death benefit early. You can use these funds to cover medical expenses or any other needs.

Term Riders:

Term riders, also known as layered coverage, allow you to increase your death benefit for a specific period. For example, you can combine coverage of different lengths, such as a 40-year policy with a 20-year term rider. This option can be more cost-effective than covering everything under one long-term policy.

Critical Illness Rider:

This rider provides financial assistance if you are diagnosed with a serious illness, such as cancer, a heart attack, or a stroke. It typically pays a lump sum that can be used for lost income, travel costs for treatment, or other expenses not covered by your health insurance.

Stacking Term Rider:

This rider allows you to top up your coverage for a specific period. For instance, you can buy a 25-year term policy with a 10-year term rider, resulting in a higher total death benefit during the first 10 years of coverage.

While Banner Life Insurance offers a good selection of riders, it is worth noting that some customers have mentioned a desire for more extensive rider options, particularly when compared to other insurance providers.

Banner Life Insurance's customer reviews and complaints

Banner Life Insurance has received generally positive reviews from its customers. The company has a low number of complaints, 57% less than an average company of its size. Banner Life's reputation is based on a smooth signup process and competitive prices, which are reflected in their positive reviews.

However, the company does receive some negative reviews, indicating challenges interacting with the customer service team. These reviews primarily crop up when a clerical error was made or a client tries to surrender a policy.

Banner Life has a complaint index of 0.05 according to the National Association of Insurance Commissioners, which is 20 times less than the national average. The company has also been praised for its financial strength and low volume of consumer complaints. Over three years, Banner Life has drawn fewer than the expected number of complaints to state regulators for companies of its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.

Reddit users have also generally praised Banner Life, mentioning its affordable rates (especially for healthy applicants) and easy quoting process. However, some Redditors have questioned Banner's options for converting a term policy to a permanent policy and its accelerated death benefit rider, which only applies to terminal illnesses.

Overall, Banner Life Insurance has a solid reputation for customer satisfaction and relatively few complaints, which indicates that the company takes customer service seriously.

Frequently asked questions