Banner Life Insurance Review

RATINGS BY CATEGORY
Premium Price
Claims Process
Consumer Feedback
Financial Strength
OVERALL
Products  |  Price  |  Claims  |  Complaints  |  Financials  |  Bottom Line

Banner Life Insurance Summary

Banner Life insurance is a subsidiary of Legal & General, a multinational insurance company headquartered in London, England. Aside from the U.S. and U.K., Legal & General has operations in Egypt, Germany, France, the Netherlands and India. Banner’s U.S. home office is in Urbana, Maryland, where the company was founded in 1949. Today, the subsidiary holds more than $415 billion worth of life insurance policies.

Banner has used independent brokers since 1995, and is partnered with the National Association of Independent Life Insurance Brokerage Agencies. Approximately 70,000 brokers sell Banner policies throughout the country. Individuals looking to buy Banner life insurance must do so through a local independent agent.

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Insurance Products

Life Insurance

Banner sells term and universal life insurance policies. Term policies are sold in periods of 10, 15, 20 and 30 years. The premiums are guaranteed for the duration of the term. After the term ends, the policy is renewable, but the rates will increase annually.

Another option available for affordable term life insurance is the Life Value policy, which is available in 20 and 30 years. Unlike the regular term life, these policies have premiums that start low and scale up through annual increases.

Universal life insurance is a permanent plan with an investment component. Instead of offering coverage for a predetermined amount of time, the universal life policy is active as long as payments are made. The policy also has a cash value that can be borrowed against or withdrawn early. One unique feature of Banner’s universal life policy is the “short pay guarantee,” which allows you to choose how many years you’d like to pay in premiums in exchange for lifetime coverage. This allows you to pay a higher premium for 10 to 15 years in exchange for a lifetime guarantee of coverage without additional payments.

Anyone considering whole or universal life insurance should read our write up about why term life is better than whole life.

Banner Life Insurance Price (Rates)

Quote Test Results
- 29.0%
Rate Test Details

According to our term life insurance rate quote test, Banner Life has very low premiums for healthy adults. In fact, in the limited amount of time we have been doing term life insurance tests, Banner provided the cheapest quote we have received so far. It is important to note that at the time of this writing our total sample size of term life quotes is still small, but they are the cheapest nonetheless.

The term life insurance market is very competitive, and there has been a major price war going on for some time now. Individuals often find that they can get a better rate even years after they initially set up a term policy, so people who already have term in place should consider shopping around every so often. You may end up saving money, getting more coverage or both.

Claims

Death claims can be filed against life insurance policies through Banner’s website. There is a one-page form that asks for information about the insured, the beneficiaries and the person filing the claim. Once the claim has been filed, a representative will contact you to follow up and explain the next steps of the process.

When filing, you have the option of choosing to be contacted via email, telephone or postal mail. You can also call a claims representative at 1-800-638-8428 ext. 6974 for help or to file the claim over the phone.

Consumer Research and Complaints

Banner Life Insurance is not accredited with the Better Business Bureau. It does, however, have an A+ rating on the BBB site. In the past three years, there were just three complaints listed, one of which was filed in the last 12 months. The number one issue reported to the BBB was problems with billing and collection, while the only other category getting a complaint was problems with the product or service.

Financial Strength

Rating CompanyGradeFinancial Outlook
AM BestA+Superior
FitchAN/A
S&PAA-Stable

Bottom Line

Banner Life is a very large life insurance company that sells policies across the country. Their prices are near the bottom of the spectrum, so they are a good choice for price-conscience shoppers. They have a solid claims process, and have very few complaints filed against them. Their financial ratings are also relatively high. Overall, they appear to be a good choice for anyone looking for life insurance.

For a list of companies that we recommend, visit our Best Insurance Companies page.

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Summary
Reviewer
Eric Stauffer
Review Date
Reviewed
Banner Life Insurance
Author Rating
4

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About the Author

Eric Stauffer

I am a former insurance agent turned consumer advocate. My priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.


Comments

  1. Jennifer says

    Hi Eric,

    I was born in India and am a 50 year old US citizen living in NC for last 20 years. I plan to retire in India about 10 years later and am planning to get a 250k, 20 year term life policy for myself. If rates and ratings are same, which would you pick in my case? Banner Life or Transamerica? Thanks.

    • Eric Stauffer says

      Hi Jennifer,

      That is a very good question.

      I personally like both companies when it comes to term life insurance, and the deciding factor would typically be based on price and/or terms of the policy.

      Since you are asking I remove those two decision points from my opinion, then it becomes a little more subjective and based on my own personal experience. In that case I would pick Banner Life, because their primary focus is on life insurance.

      Transamerica has their hands in a lot of financial industries, and I have personally (well, my wife) had an old 401k through them. I was not impressed at all with their fee structure, but that is a story for another day.

      Let me be clear, my decision here is based solely on personal preference given the relationship my wife and I have already had with Transamerica. If the rates were not the same, I would probably go with whoever was cheaper.

      Best,
      Eric Stauffer

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