Drewberry™ provide pensions, investment and insurance advice for Money to the Masses readers throughout the UK.

Legal and General Income Protection

Founded

1836

Documents

Policy Terms PDF
Key facts PDF

Company Type

Public Limited Company

Company Overview

Legal & General was formed by Sergeant John Adams and five other lawyers in June 1836 in a Chancery Lane coffee shop. L&G have become a leader in the protection market with over 7 million customers for their life assurance, pensions, investments and general insurance plans.

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Type of Policy
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Income Protection Overview

A very comprehensive product which is more suited to individuals in low risk occupations given the limited term ‘Own Occupation’ incapacity definition for occupation classes 3 and 4.
 

Legal and General use an ‘Own Occupation’ incapacity definition for the vast majority of occupations…

 

The Legal and General product has a core premium which is guaranteed for the full term of your policy…

 

It is good to know Legal and General publish their claim statistics where many insurers still decline to do so…

 

The Legal and General product has an application which includes full medical underwriting so you know exactly where you stand from the outset…

 

Legal and General Policy Conditions

An overview of the key policy details of Legal and General Income Protection.

Overview of Key Policy Details

Policy Type

Income Protection
(Accident & Sickness Only)

Underwriting

Public Limited Company

Premium Type

Guaranteed
Reviewable option also available

Maximum Claim Duration

Unlimited
Limited term option available with a maximum benefit payment period of 2 years.

Incapacity Definition

Own Occupation
Individuals in jobs which are rated as either an occupation class 3 or 4 are covered based on an ‘Own Occupation’ definition for only the first 12 months of a claim. After 12 months the definition of incapacity switches to ‘Activities of Daily Living’ (ADW).

Deferred Period

4 / 13 / 26 / 52 weeks

Indexation

Optional
When selected L&G will annually increase your benefit by the Retail Price Index whilst the premium will rise by 1.5 x Retail Price Index.

Waiver of Premium

Included

Maximum Cover
(% Income)

60% Gross Taxable Earnings
The maximum benefit is 60% of gross earnings up to £30,000 p.a., plus 50% of gross earnings over £30,000.

Maximum Cover
(£ per month)

£16,666.00

Max. Policy Cease Age

70 years old

Min. Policy Term

5 years

Min. Entry Age

18 years old

Max. Entry Age

60 years old

Guaranteed Insurability

  • Mortgage Increase
  • Marriage or Civil Partnership
  • Every Third Policy Anniversary

Guaranteed Benefit

Not Available

Overseas Travel

If you travel to or reside in any part of the European Union, USA, Canada, Australia, New Zealand, Isle of Man or the Channel Islands, you will still be fully covered by your Income Protection Benefit.

If you make a claim whilst you travel to or reside temporarily in any other parts of the world, then any benefit will only be paid for a maximum of six calendar months.

Policy Exclusions

Alcohol or solvent abuse, or the taking of drugs other than those under the direction of a registered medical practitioner.

We have taken care to ensure that the information on this Drewberry owned website is accurate. However we can give no guarantee as to the accuracy of the content of the site. We accept no liability for any losses whether direct or indirect arising from errors on our part.

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Drewberry reviews L&G Personal Income Protection…

Legal & General are an extremely large and reputable insurer with a solid income protection product. However, care needs to be taken if you are looking to include inflation indexation or spend the majority of your working day out of an office environment.

Key Comparison Points

  • For occupation risk classes one and two (mainly office based workers) an Own Occupation definition of incapacity would be used throughout the life of a claim;
  • For occupation risk classes three and four (mainly non-office based workers) an own occupation definition would only be used for the first 12 months of a claim, before switching to the very strict Activities of Daily Living (ADL) definition (other insurers would not do this;
  • Please be aware that if you include the inflation indexation option Legal & General would increase your benefit each year in line with inflation but would increase your premiums by 1.5 times inflation (other insurers would not do this);
  • L&G provide a hospitalisation benefit as standard, paying out 1/30th of your monthly benefit during the deferred period for each night spent in hospital (up to£150 per night and payable after seven consecutive nights in hospital);
  • For individuals who want cover but who are on a tight budget, L&G also provide the option of a limited benefit period policy that could only payout for a maximum period of five years.

Policy exclusions

The only standard exclusion with the Legal & General income protection policy is for incapacity resulting from drug, alcohol or solvent abuse. It is also worth noting that the insurer would only payout for up to six months when residing or travelling outside the EU, North America or Australasia.

Financial strength

As a member of the FTSE 100 index, Legal and General is not only one of the largest insurers in the UK but also one of the largest companies in the UK. Formed in 1836 L&G have demonstrated their financial strength in all economic climates and held an IGD surplus of £4 billion in 2011, which is over twice the regulatory requirement.

 

 

Legal & General Income Protection – Questions and Answers

A series of commonly asked questions with regards to the policy coverage of the Legal and General income protection product.

Q. Does my cover increase over time automatically in line with salary rises or do I have the option to increase how much it would payout at a later date? I exact my income (and expenditure) to rise over time so want to ensure I’ve always got enough cover.

A. Unless you include the inflation indexation option your level of cover would remain fixed over the life of the policy, unless you specifically contact the insurer to increase your monthly benefit.

You are able to increase your monthly benefit at any time but the insurer would ask you to make a health declaration stating that your health is unchanged from when you initially took out cover. If you health has changed special terms may need to be applied to additional benefit insured.

However, nearly all insurers have guaranteed insurability options, which allow you to increase your level of cover after ‘lifestyle events’ without needing to make any medical disclosures. These events are listed above in the table for Legal & General (please note that limits apply).


Q. What happens if I’m making a claim and really want to go back to work but can’t find a job that pays anywhere near what I was earning before because I’m not fully recovered yet?

A.Most insurers, including Legal and General, have something in the contract called ‘proportionate benefit’, which says that the insurer would pay the difference between your old earnings level (typically in the 12 months prior to incapacity) and the new post disability income level if you had to take a lower paid job as a result of the illness or injury.

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REVIEWS
EXCELLENT
4.92 / 5 Average
1,263 Reviews
Anonymous
Overall Rating
SAM Carr was exceptional, he made my life very easy by explaining all the details very clearly whilst giving me the best advice possible for myself.

Would recommend to a friend!
Anonymous
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Provided the advice & guidance that I needed
M
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The overall experience which I have had can be summarized by Professional, Swift and friendly. I would recommend the service to others.
D
Overall Rating
Extremely helpful and rapid service at short notice.
A
Overall Rating
Very clear explanations of the options and then efficiently processed the transaction