Update In February 2017, Tesco announced plans to withdraw from the life insurance market. New customers can no longer get a quote from the company.
Summary of Tesco Life Insurance
Tesco is one of the leading supermarkets in the country and its Tesco Bank arm offers a range of financial products, including life insurance.
Tesco's life policies are:
- Life insurance
- Life and critical illness insurance
- Over 50s life insurance
Tesco features on our lists of Top 10 Term Life Insurance and Top 10 Over 50s Life Insurance. You can see the full list and find out more about life insurance here.
Tesco also offers free life insurance for new parents, who can receive £10,000 of life cover up until their child’s first birthday.
Tesco's life cover is provided by Aviva Life & Pensions UK Limited. Aviva is underwritten by CGU Underwriting. Aviva has its own free policy for new parents that offers £15,000 of cover, which you can apply for on their website.
You can compare life insurance policies and quotes using the specialist comparison site ActiveQuote.
Tesco life insurance
You can apply for Tesco Bank life insurance if you are aged 18 to 85 and a UK resident. As with most insurance companies, Tesco offers level and decreasing cover.
Find out more about these terms and the differences between policies with our guide to the best life insurance.
You can purchase a single or a joint policy, but remember that joint policies will only pay out one lump sum on the first successful claim. That means if you're in a couple and your partner dies, the policy will pay out if the claim is approved but your cover will then end.
Tesco says your monthly premium will never go up, even if there is a change to your health or lifestyle after taking out the policy.
Tesco life and critical illness insurance
Tesco critical illness insurance will cover you if you are diagnosed with a critical illness. Tesco covers over 40 illnesses, including advanced cases of cancer, strokes and comas that result in permanent symptoms and heart attacks of a specified severity, among a host of other illnesses.
The life part of the policy will also pay out a lump sum if the policyholder dies.
Tesco over-50s life insurance
Tesco over-50s life insurance is designed for UK residents aged 50 to 80.
For over-50s cover, you’ll either pay premiums for a maximum of 30 years or until the policy anniversary after your 90th birthday, whichever comes first.
Tesco Bank does not require you to take any medical tests and it will not ask any questions about your health. However, it does set a £100 limit on the monthly premium you can pay. When we got a quote for a 58-year-old woman with the monthly premium set at £100, Tesco offered us just over £26,000 for the sum assured. It also stated that the policyholder would pay more in premiums than the policy would pay out if they were to die after 21 years and 10 months of having the policy.
Tesco bank has an easy online quote process, making it simple to play around with either the monthly premium or the sum you would like to pay out.
Useful information about Tesco life insurance
Tesco provides useful information in its Key Features booklet, which you can download from its life insurance website. It includes an overview of the risks surrounding life insurance. For example, if you end your policy you won’t receive any money back because the policy doesn’t have a cash-in value.
The bank also reminds you that inflation will reduce the value of the cash lump sum over time. This means you should review your cover periodically to ensure that it is adequate for your circumstances.
Make sure you always read your policy documents so you know exactly what you’re buying. It can be useful to shop around to see what the prices and benefits other companies offer. You can use specialist comparison site ActiveQuote to check life insurance policies.
In 2014, Tesco Bank was awarded the Best Direct Life Insurance Provider award at the Your Money Awards.
How much does Tesco life insurance cost?
The cost of life insurance will vary widely depending on a variety of factors, including your health, your gender, whether or not you are a smoker, your age and even where you live. Tesco says its minimum premium is £5 a month, which for a 35-year-old non-smoking male would offer £36,204 of cover on the level policy.
On the Tesco website there is an example of a healthy, non-smoking 35-year-old. The premium for this person would be £11.64 per month for £200,000 of decreasing cover over 20 years, or £15.77 per month for level cover, although it stated these rates were correct as of 07/12/2015.
You can compare prices using ActiveQuote.
It’s essential that you’re completely honest when filling out an insurance form. If you put down information that is incorrect, it may affect your ability to claim. Remember to contact your insurer if any of your details change. If there’s something you’re not sure about, it’s best just to ask.
What do customer reviews say
There are very few reviews of Tesco's life insurance but there are reviews of Tesco Bank as a whole.
On Trustpilot Tesco has a score of 1.2 out of 10 from 103 reviews, on Reviews.co.uk it is rated 4.27 out of 5 from 159 reviews and on Reviewcentre.com it scores 1.3 out of 5 from 123 consumer reviews.
What the experts say
Financial services review site Fairer Finance ranks Tesco life insurance 9th out of 24 providers and awards it a bronze ribbon.
Independent financial researcher Defaqto has rated both Tesco Bank life insurance and Tesco Bank life Insurance with critical illness as 5 Star.
A Star Rating indicates where a product of proposition sits on the market based on the quality and comprehensiveness of the features it offers.
A 5 Star rated policy is “an excellent product” which offers “a comprehensive range of features and benefits”.