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Banner Life Insurance is a life insurance company with good ratings for financial strength and customer satisfaction. The company offers a sound line-up of core coverage including term, universal, and final expense policies, along with several riders that can be used to customize individual policies. However, Banner’s premiums are fairly run-of-the-mill and Banner lacks diversity in coverage that make other insurers stand out.
- Pros and Cons
- Key Takeaways
Dedicated final expense policies available
Universal life coverage available to age 100
Superior financial stability ratings from multiple agencies
Riders available to get the most from your policy
Only three types of coverage available
Monthly payments only available with automatic bank draft
Limited customer service hours
Some complaints about trouble changing policies or policies being canceled unexpectedly
- Banner only offers a few core types of life insurance coverage
- The company has very few complaints or negative reviews online
- Pricing for life insurance coverage from Banner Life is about average for the industry
- Banner only offers a few key types of riders
- The company receives high marks for financial strength from multiple ratings agencies
- Year Founded 1949
- Average Cost Per Month $13.39 per month for $150,000 in 20-year term life coverage for a 35-year-old non-smoking male in average health
- Kinds of Plans Term, universal, final expense
- Number of Plans Three
- Payment Plan Options Annual, semi-annual, quarterly, premium (only with automatic bank draft)
- Official Website https://www.lgamerica.com/
Banner Life Insurance offers several types of policies that can be customized with different types of riders. While Banner offers a good line-up of core coverages, they don’t offer as many policies as some other insurers. Nor do they have the lowest premiums. Below, we reviewed Banner’s offerings, pricing, financial stability ratings, and customer satisfaction reports. Read on for our full take.
Company Overview: Young Company But Financially Solid
Banner Life was founded in 1949 as Government Employees Life Insurance Company (GELICO). In 1981, the company became part of the London-based Legal & General Group. It's headquartered in Frederick, Maryland, and the company specializes in providing three main types of life insurance to meet customers’ core needs.
Available Plans: Just the Basics
Banner Life only offers three different types of life insurance coverage—fewer than are available through most insurers. Banner offers one type of term life policy, one type of universal life policy that accumulates cash value, and one final expense policy designed to cover medical bills, funeral expenses, and any unpaid debts.
Banner Life offers the following policies:
Banner Life offers term life policies for customers between the ages of 20 and 75 years old. Term life policies provide a predetermined amount of coverage, ranging from $100,000 to $10 million, for a fixed premium. Policies last for pre-set terms ranging from one to 40 years.
Term life insurance allows you to meet your financial obligations today, while still protecting your family's future tomorrow.
Banner Life universal policies must be purchased through an agent. These policies offer coverage ranging from $50,000 to $10 million and accumulate cash value in addition to offering a death benefit and guaranteed lifetime coverage.
Banner Life’s offers the following universal life policy:
- Life Step UL: Banner Life’s Life Step UL policy is a flexible premium universal life insurance plan. The policy provides guaranteed lifetime coverage with a death benefit as well as guaranteed cash values. Policyholders also get premium flexibility that let them guarantee coverage for shorter durations such as a defined age.
Universal life policies through Banner Life also provide policyholders with a short pay guarantee. This guarantees that policyholders can design premium payments over a fixed number of years to guarantee lifetime coverage or complete lifetime premium payments before retirement.
Banner Life doesn’t offer many different types of riders, but makes several key add-ons available.
Final expense policies from Banner Life are available from $1,000 to $15,000 in $1,000 increments. Policies also offer guaranteed acceptance for applicants aged 50 to 80—no one can be turned down because of their health. There’s no medical exam or lengthy health questionnaire. Banner also advertises the “best rates for non-tobacco users” and guarantees that premiums will never go up. Banner also promises that “approved claims paid within one business day.”
Available Riders: A Few Key Add-ons
Banner Life policyholders who want to get more out of their policies can add riders to their policy for added benefits. Banner Life doesn’t offer many different types of riders, but makes several key add-ons available. The riders that can be added vary by policy type—not all riders are available for all policy types.
Banner Life policyholders can add the following riders to their coverage:
Waiver of Premium
A waiver of premium rider pays for a policyholders’ premiums if they become disabled or suffer a serious long-term illness for at least six months. This rider is only available for policyholders aged 25 to 55 who have certain types of coverage.
The conversion option allows customers to exchange their term policies for universal life coverage. This conversion option also allows policyholders to convert their policies in the same health class—even if there’s been a change in their health. Conversions can be requested anytime during a policy’s guaranteed level premium period up to attained age 70.
Term riders allow policyholders to add term life coverage to an existing universal life policy.
Policies also offer guaranteed acceptance for applicants aged 50 to 80—no one can be turned down because of their health. There’s no medical exam or lengthy health questionnaire.
Accelerated Death Benefit Rider
Accelerated death benefit riders let universal life policyholders access their death benefits early if they’re diagnosed with a qualifying terminal illness. Qualifying policyholders can access up to $500,000 or 75% of the policy's primary death benefit (less any outstanding loan balance), whichever is less. Accelerated death benefits are treated as loans and accrue interest that reduce the death benefit to be paid when the insured dies.
A children's life insurance rider adds death benefit coverage for children of an insured. Universal life policyholders who add this rider get coverage on children until the child turns 25, the insured turns 65, or the policy is canceled.
Customer Service: Only During Business Hours
Banner Life policyholders who need assistance can call 1-800-638-8428 from 8 a.m to 5 p.m. Eastern Monday through Friday. Alternatively, customers can fax 301-294-6960, email email@example.com, or log in through Legal & General’s website (https://www.lgamerica.com/).
Customer Satisfaction: Good Reviews & Few Complaints
Banner Life isn’t rated by JD Power. However, the company has an A+ rating from the BBB and only has three registered complaints. There are a few negative reviews online that reference trouble making changes to policies or having policies canceled unexpectedly, but most reviews are overwhelmingly positive.
If you want custom coverage or niche riders, you should look for coverage from another provider.
Financial Strength: Excellent Anyway You Cut It
As a subsidiary of Legal & General, Banner doesn’t get its own financial ratings. However, Legal & General gets superior ratings from several agencies. The company gets an A+ rating from AM Best, AA- from S&P, and AA- from Fitch.
Cancellation Policy: Easy But Potentially Expensive
Customers who decide to cancel a policy with Banner Life can do so relatively easily. To cancel, all you have to do is complete a simple surrender form that’s available online. Surrender charges vary by policy type and individual policy documents. There are no surrender charges for term policies, but surrender charges apply for universal policies for the first 14 years after issue.
Banner Life’s pricing isn’t super expensive—about average for the industry.
Price: Nothing Special
Prices for life insurance policies through Banner Life are reasonable but not stellar. While prices aren’t unreasonable, Banner isn’t the least expensive provider available. Premiums are paid annually, semi-annually, quarterly, or monthly if a policyholder sets up automatic payments.
Below are sample premiums for $150,000 in term life coverage for 20 years for non-smokers in average health:
|25||$12.43 per month||$10.94 per month|
|35||$13.39 per month||$11.96 per month|
|45||$25.20 per month||$19.19 per month|
|55||$56.02 per month||$38.80 per month|
|65||$165.15 per month||$128.73 per month|
Competition: Banner Life vs. Colonial Penn
Both Banner Life and Colonial Penn are established life insurance companies that are owned by larger companies. Banner Life receives superior ratings for financial stability and customer satisfaction. Banner also has more riders available and premiums for term life policies are lower, even with higher coverage amounts. Customers debating between the two will likely be more satisfied with Banner Life.
Many people who shop for life insurance with Banner Life also shop with Colonial Penn. It's important to note that Banner Life doesn't offer a policy below $150,000 in term and Colonial Penn doesn't offer a traditional term life policy over $50,000. Consumers should pay attention to the differences to make an apples-to-apples comparison.
|Banner Life||Colonial Penn|
|Customer Satisfaction Ratings||Great ratings, good reviews, few complaints||Good ratings, mixed reviews, some complaints|
|Number of Riders Available||Five||Two|
|Monthly Cost for term life coverage on 35-year-old non-smoking male in standard health||$13.39 per month for $150,000 of coverage on a 20-year term||$28.92 per month for $50,000 of renewable term life coverage|
A Solid Option But Not Unbeatable
Banner Life is a solid life insurance company for customers looking to purchase insurance from a company with excellent ratings for financial stability and customer satisfaction. However, the company only provides a few core policies and isn’t the cheapest option for customers who have particular needs or are cost-conscious shoppers.