About Legal & General income protection

Legal & General (L&G) is one of the UK's leading financial services providers and top 3 life insurers by market share, with over 180 years of experience protecting UK families.

Is their income protection good and how does it match up to others on the market?

Key Legal & General credentials:

• Founded in 1836 (180+ years protecting UK families)
• Top 3 UK life insurer by market share
• A-rated by Standard & Poor's (very secure financial strength)
• 90%+ claim payout rate (pays out on vast majority of valid claims)
• Over 1.5 million protection policies in force
• £1.3 trillion in assets under management (2023)
• FTSE 100 company with strong financial backing
• FCA regulated and adheres to strict industry standards

L&G's reputation for income protection:

Legal & General is widely regarded as a 'safe pair of hands' in the income protection market. While not always the absolute cheapest, they consistently rank in the top 5 most competitive quotes for standard risks (healthy, non-smokers in standard occupations).

Why not use the services of LifePro's advised team to compare Legal & General income protection with all the UK's best income protection providers?

Their whole of market comparison service allows you to discover the best policy to meet your needs, at the right price for your budget, including providers who offer cover from just 20p-a-day.

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Legal & General income protection features

Legal & General offers a comprehensive income protection product with flexible options to suit different needs and budgets.

Core policy features:

• Income replacement: Up to 70% of gross salary (maximum benefit varies by policy)
• Own occupation definition: Can claim if unable to do YOUR specific job
• Deferred periods: 1, 4, 13, 26, or 52 weeks (choose how long before payments start)
• Benefit periods: 2 years, 5 years, to age 60, 65, or 70
• Premium options: Guaranteed (fixed) or reviewable (can increase)
• Indexation: Optional inflation-linking (cover increases with RPI)
• Waiting days: Policies can start from day 1 of incapacity (with appropriate deferral)
• Tax-free benefits: All income protection payments are tax-free

Additional benefits included with L&G income protection:

1. Back to Work support: L&G's rehabilitation service helps you return to work when ready. Includes access to physiotherapy, counselling, occupational therapy, and workplace assessments. Aims to support recovery rather than just pay you to stay off work.
2. Proportionate benefit: If you return to work part-time or with reduced earnings, L&G may continue paying a proportion of your benefit. This supports phased returns to work without losing all income protection support.
3. Waiver of premium: After claiming for 12 months, your premiums are waived (you stop paying while receiving benefits). This eases financial pressure during long-term claims.
4. Guaranteed insurability option: Increase your cover without further medical underwriting when life events occur (marriage, birth of child, mortgage increase). Ensures you can adapt cover as your income grows.
5. Terminal illness benefit: If diagnosed with terminal illness with less than 12 months to live, the deferred period is waived and payments start immediately.
6. Hospitalization benefit: Some L&G policies include a lump sum payment if you're hospitalised for more than 7 days. This helps cover additional costs during hospital stays.

Flexible policy options:

Policy customization options

Feature	Standard option	Enhanced option	Impact
labelDeferred period	values13 or 26 weeks4 weeks or day 1Shorter wait = higher premiums (40-60% more)
labelBenefit period	valuesTo age 652-5 yearsShorter benefit = lower premiums (30-50% less)
labelPremium type	valuesGuaranteed (fixed)ReviewableReviewable 20-30% cheaper initially but can increase
labelIndexation	valuesLevel (no increases)Indexed (RPI)Indexed adds 10-15% to premiums but protects against inflation
labelDefinition	valuesOwn occupationAny occupationAny occupation 20-40% cheaper but much harder to claim

L&G's underwriting process:

1. Application: Complete online or phone application with medical questions about current health, past illnesses, treatments, medications, and lifestyle (smoking, alcohol, BMI).
2. Medical evidence: For standard applications: Just answer medical questions. For higher benefit amounts (£100,000+ per year): May need GP report or medical examination. For pre-existing conditions: Likely need detailed medical records.
3. Underwriting decision: Standard rates: Healthy applicants get standard premiums. Exclusions: Specific conditions excluded from cover (e.g., back condition excluded). Loaded premiums: Extra cost (10-50% loading) for higher risks. Declined: Severe pre-existing conditions may result in application decline.
4. Policy starts: Once approved, cover starts immediately. You're protected against all non-excluded conditions from day 1.

L&G is generally fair in underwriting, though they can be stricter than some competitors for mental health conditions and complex medical histories. Using a broker like LifePro helps - brokers know which insurers are most lenient for specific conditions.

What does Legal & General income protection cover?

Legal & General income protection covers inability to work due to ANY illness or injury, provided you meet the policy conditions.

Own occupation vs any occupation definition:

Real-world claim examples with Legal & General:

Will Legal & General pay out?

Scenario	Own occupation	Any occupation
labelSoftware developer with severe RSI can't type but could do phone-based job	values✓ Yes - can't do YOUR job✗ No - could do other work
labelTeacher with chronic anxiety unable to face classroom but could work in admin	values✓ Yes - can't teach✗ No - could do admin
labelBuilder with back injury can't do manual work but could do office job	values✓ Yes - can't build✗ No - could do office work
labelAccountant with depression unable to work at all	values✓ Yes - can't do any work✓ Yes - can't do any work
labelSurgeon with tremor can't operate but could consult	values✓ Yes - can't perform surgery✗ No - could consult

The 'own occupation' definition is far more generous and increases claim likelihood significantly. Always choose own occupation if available.

What evidence does L&G need for claims?

• GP medical records confirming diagnosis and inability to work
• Specialist reports (if relevant - consultant letters, hospital records)
• Occupational health assessments from employer
• Details of your job duties and why you cannot perform them
• Treatment plans and medication records
• Employer confirmation of absence from work (absence records, sick notes)
• Evidence of income loss (payslips showing reduced/stopped income)

Legal & General's claims philosophy is to pay valid claims promptly while investigating suspicious claims thoroughly. Their 90%+ payout rate shows they support genuine claimants.

Legal & General income protection costs

Legal & General income protection costs vary based on personal factors, but they're typically competitive for standard risks.

Example pricing (non-smoker, good health, office worker):

Factors affecting Legal & General pricing:

Cost factors and their impact

Factor	Impact on cost	Example
labelAge	valuesOlder = more expensive50-year-old pays 2-3x more than 30-year-old
labelSmoking	valuesAdds 30-50% to premium£30/month becomes £40-45/month
labelOccupation	valuesManual = 2-3x office costBuilder pays 2x what accountant pays
labelHealth conditions	valuesLoadings 10-50%+Diabetes may add 20-30% loading
labelBenefit amount	valuesLinear increase£4,000/month costs 2x £2,000/month
labelDeferred period	valuesLonger = cheaper (40%)52-week 40% cheaper than 4-week
labelBenefit period	valuesShorter = cheaper (30-50%)2-year cover 50% cheaper than to age 65

Is Legal & General competitive?

When L&G is often cheapest:

• Standard office occupations (accountants, administrators, IT workers)
• Non-smokers under 45 in good health
• Higher benefit amounts (£3,000+/month) - L&G's pricing competitive at higher levels
• Longer deferred periods (26-52 weeks) - L&G remains competitive
• Benefit to retirement age - L&G's long-term rates strong

When other providers may beat L&G:

• Very healthy, active individuals - Vitality may be cheaper with rewards discounts
• Manual occupations - Scottish Widows sometimes more competitive for builders, electricians
• Older applicants (50+) - Aviva occasionally cheaper for older age groups
• Pre-existing conditions - Other insurers may offer better terms for impaired risks
• Short-term cover (1-5 years) - Specialist providers may undercut L&G

Ways to reduce Legal & General costs:

1. Choose longer deferred period: If you have employer sick pay or 6 months savings, choose 26-week deferred period (saves 30-40% vs 13-week). Match deferred period to your financial buffer.
2. Don't smoke or quit smoking: Smoking adds 30-50% to premiums. Quit smoking for 12+ months to qualify for non-smoker rates (saves £10-20/month on typical policy).
3. Consider short-term benefit period: If you have pension savings or other long-term security, 2-5 year benefit period is 30-50% cheaper than full-term to retirement. You're still covered for typical claim durations (most claims last under 2 years).
4. Review benefit amount: Do you need 70% of income or would 50-60% suffice? Reducing benefit amount by 20% saves 20% on premiums. Remember, income protection is tax-free so 50% replaces more than half your take-home pay.
5. Avoid unnecessary extras: Indexation adds 10-15% to premiums. If you're young and can review cover every few years, you might skip indexation and manually increase cover when needed.
6. Compare whole market: Even if L&G is your preferred provider, compare with all insurers through LifePro. You might find identical cover 20-30% cheaper elsewhere, or L&G might be cheapest for your profile.

Remember: Cheapest isn't always best. Consider claim payout rates, financial strength, customer service, and additional benefits alongside price. Legal & General's 90%+ claim rate and A-rating justify paying slightly more than rock-bottom price.

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Should you choose Legal & General income protection?

Legal & General income protection is an excellent choice for many people, but whether it's right for YOU depends on your specific circumstances.

When Legal & General is ideal:

• You prioritise financial stability - L&G's A-rating and 180+ year history provide confidence they'll be around to pay claims
• You value claim reputation - 90%+ payout rate shows they stand by policyholders
• You're a standard risk - Healthy, non-smoker, office job = L&G often very competitive
• You want comprehensive cover - L&G offers own occupation definition, flexible terms, excellent add-ons
• You appreciate back-to-work support - L&G's rehabilitation services are well-regarded
• You prefer established brands - L&G is a household name with strong reputation

When to consider alternatives:

• You're very health-conscious - Vitality may be cheaper with rewards for gym attendance
• You have pre-existing conditions - Other insurers may offer better terms (Scottish Widows, Aviva)
• You're in a manual occupation - Some specialists offer better rates for builders, electricians
• Budget is absolute priority - There may be cheaper options if you're willing to sacrifice some features
• You want no-underwriting option - British Friendly's Breathing Space requires no income proof

Final verdict on Legal & General:

Decision framework:

Should you choose Legal & General?

Your situation	L&G suitable?	Action
labelHealthy, non-smoker, office job, straightforward needs	valuesVery suitableGet L&G quote AND compare with 5 others
labelPre-existing health conditions or complex medical history	valuesMaybe suitableCompare L&G with Scottish Widows, Aviva, Royal London (may be more lenient)
labelManual occupation (builder, electrician, driver)	valuesSuitable but check othersCompare L&G with occupation-specialist providers
labelVery budget-conscious, need absolute cheapest	valuesMaybe suitableCompare whole market - Vitality, Holloway Friendly may be cheaper
labelWant rock-solid stability and don't mind paying slightly more	valuesVery suitableL&G's A-rating and reputation worth premium over cheaper alternatives
labelSelf-employed with irregular income	valuesSuitableBut also consider British Friendly Breathing Space (no income underwriting)

How LifePro helps you decide:

1. Whole market comparison: LifePro compares Legal & General with 50+ other UK providers. You see where L&G excels and where competitors beat them.
2. Expert matching: LifePro knows which insurers are best for your profile (age, job, health, budget). They'll tell you honestly if L&G is your best option or if another insurer suits you better.
3. Application support: If you choose L&G, LifePro helps complete the application correctly, ensuring medical questions are answered accurately (avoiding future claim issues).
4. Claims assistance: If L&G (or any insurer) declines your claim, LifePro helps you appeal with additional evidence. Brokers know how to challenge unfair declines.
5. No cost to you: LifePro is paid commission by the insurer (whether L&G or competitor). You pay the same premium whether buying direct or via broker, but get free expert advice.

Final recommendation:

Ready to compare? Get instant quotes from Legal & General and all UK providers through LifePro's free, no-obligation comparison service. Our FCA-regulated advisers will help you find the right cover at the best price.

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