If you live in New York and have been looking for a life insurance policy, there is a good chance that The William Penn Life Insurance Company has been one of the top policies being offered.
If you’ve never heard of William Penn before, it’s not very surprising because the company doesn’t advertise very much like other insurance companies who are competing for your business.
William Penn is one of the low cost leading term life insurance companies which is owned by Legal and General America. However, William Penn is only licensed to conduct business and sell policies in the state of New York. While Its sister company Banner life insurance, is licensed to conduct business in every other state except New York.
Who is Legal and General America?
Legal and General is what you might call the “mother ship” of William Penn and Banner Life Insurance Company. Legal and General was founded in 1836 in London England by six lawyers including one of the founding fathers of America, John Adams.
The company is still headquartered in the U.K., and has come a long way over the past 180 years. In 1981, it purchased Government Employees Life Insurance Company (GELICO), today known as Geico but changed the name to Banner in 1983. Geico is now owned by Berkshire Hathaway. Geico and Legal & General are no longer associated.
William Penn was purchased by Legal & General Group as a wholly owned subsidiary of Banner Life Insurance Company in 1989. The two companies, Banner and William Penn underwrite and issue life insurance policies under the Legal & General America brand.
William Penn Life Insurance Company Financial Ratings
William Penn is located in Garden City, NY and has become one of the top providers of life insurance. Currently, the company has more than $400 billion of inforce life insurance policies. Most importantly, the company is very financially stable. Their assets are invested mostly in AAA corporate and Government bonds making the company financially solvent to pay claims. A.M. Best credit rating service gives William Penn an A+ rating or “Superior,” meaning the company has little chance of defaulting on its claim paying ability.
William Penn Policy Features
When you compare online life insurance quotes in New York, you will notice William Penn is in the top 3 position of the most competitive term life policy pricing. They offer term life coverage of 10,15,20,25 and 30 years. Once you own a term policy from William Penn, it is guaranteed renewable and non-cancellable. Which means they cannot cancel your policy for any reason. At the end of the term, you can continue your policy however at a higher rate based on your age at the time.
The policy can also be converted to a permanent policy – such as Universal Life within the first 20 years, or up to age 70 – which-ever comes first. A medical exam is not necessary to convert your policy and the conversion option keeps your original health rating even if your health has deteriorated.
William Penn Term Life Products
William Penn offers the same term products as Banner Life under the parent company Legal and General. These products are sold and licensed in New York.
The OPTerm® Series from William Penn:
OPTerm 10®, OPTerm 15®, OPTerm 20®, and OPTerm 30®. Premiums are level and guaranteed for the duration of each term period. All health classes are available for all OPTerm products.
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APPcelerate – No Exam Life Insurance Program From William Penn
Just like Banner Life, William Penn offers a no exam insurance policy which makes applying for insurance very simple. Appcelerate is a no exam program designed for people who are in good health. No exam, no blood work, no requesting records from your physician and If you qualify, your policy will be issued within 24-48 hours!
Policy amounts are available from $100,000 to $500,000 of coverage for ages 20 to 50. All OPTerm® products are available for the program.
Medical classes available are Preferred Plus and Preferred Non-Tobacco and Standard Plus rates
APPcelerate program is available in all states except Connecticut, Alaska and Hawaii
Additional Policy Riders
Waiver of Premium – This rider covers you if you become totally disabled and you can’t pay your premiums due to the fact you can not work. The definition of “totally disabled” is quite severe. It means you are not able to hold any job in any capacity. If you meet this definition, Waiver of Premium ensures your policy remains in force until or if, you can resume making payments. Note: There is an additional cost for this rider.
Policy Conversion – Available on all term life policies allows you to convert to a permanent policy such as universal life with no further medical requirements. No additional cost.
Accelerated Death Benefit –If you are diagnosed as terminally ill, you can access a portion of your death benefit to help pay medical bills, hospice care or other treatments to keep you alive with dignity. The final death benefit payment when you die would be reduced by the amount received. No additional cost.
Children’s Rider– is not available with William Penn but is available with Banner Life policies
Life Step Universal Life (UL)
Life Step UL is a flexible premium universal life insurance plan. This product offers a coverage guarantee to maturity at age 121. Reduced or level payment and coverage options are available.
Life Step UL was designed for term conversions or new policies with face amounts as low as $50,000. The guaranteed cash value is designed to pay a lump sum for its face amount at age 121, provided the contract is funded to maturity. Issue ages for Life Step UL are ages 20 to 85
Universal Life Coverage Explained:
The nice feature about Universal Life insurance is that it provides flexibility to the policy owner in regards to the timing and amount of premium payments. You do not need to pay premiums to keep coverage in force and paying your premium late will not place the policy at risk for a lapse of coverage.
Premium payments, after a deduction for insurance expense charges, are deposited to the cash value account. (Policy expense charges include monthly administrative and mortality charges for the amount of insurance coverage provided). At the end of each month the Company credits interest to the account value. The current interest crediting rate is 2%
Coverage remains in force as long as there is sufficient funds to pay the deductions. Life Step UL has an additional guarantee that will prevent a lapse of coverage. The additional guarantee is commonly referred to as a secondary guarantee because this is in addition to the primary policy guarantee. This guarantee provides an extra layer of protection to one who pays the defined premium on time to prevent the policy from lapsing.
William Penn Life Insurance Company Summary
Besides having excellent pricing and flexible products, William Penn is also a good choice if you have a pre-existing medical conditions. The company’s underwriting is very liberal for high risk applicants such as those with Type 1 or Type 2 diabetes. They also specialize in favorable pricing for people with high blood pressure and high cholesterol as long as these conditions are controlled by medication.
If you are searching for online term life quotes in New York, the chances are, William Penn will probably have the most competitive rates. Although the company is not well known, do not be afraid to apply with them. They are a very secure insurance company with a great reputation.
The key to finding the best life insurance company for your situation is to compare quotes from the top rated companies such as William Penn, Prudential, Voya, Banner and so on. More importantly, you should work with an independent agency such as ours so you can get quotes from several insurance companies to compare your options. If you have a pre-existing health condition, it’s best to speak with us at: 914-633-1717, so that we can recommend the best company and policy type for your situation.