Overview of Tesco’s Life Over 50s and Mortgage Life Insurance Products

Tesco carries three life insurance products:

Why Go with Tesco?

Here are some reasons to go with Tesco:

Quick Facts

  Over 50s Life Cover Mortgage Life Insurance New Parent Free Life Cover
Primary purpose of product

Provides for end of life expenses of the Person Insured such as Funeral Costs and Financial provision for loved ones.

Ensures that the mortgage is paid in the event of the death or terminal illness of the mortgage holder.

Provides life insurance cover for new parents.

Plan basics

Provides life insurance cover from 50 until the end of the Person Insured’s life.

Lump sum will only be payable in the first year if death is due to accident. After the first year, twice the sum assured will be paid for death due to accident.

If death within the first year is due to sickness or natural causes, the premiums will be refunded.

Afterwards, the benefit is payable for death due to any cause.

This cover is provided by Aviva for Tesco.

Pays out a lump sum benefit to cover a mortgage upon the death of the Person Insured or diagnosis of a terminal illness.

The Sum Insured may be level (to protect an interest-only mortgage) or decreasing (to protect a repayment mortgage).

This cover is provided by Aviva for Tesco.

Provides life insurance cover when one becomes a parent. The cover is up to the child’s first birthday.

This is only for new parents.

This cover is provided by Aviva.

Cover limits

Maximum cover is based on maximum premium.

No maximum cover but should not be more than the amount of the mortgage.

£10,000

Only 1 plan per child is allowed, whether this cover is obtained from Tesco, Aviva or other third party providers.

Cash-in value

None

None

None

Eligibility
Minimum age at entry

50

18

18

Maximum age at entry

80

67

66

Other eligibility requirements

Must be a resident of the UK, Channel Islands or Isle of Man are excluded

Must be a resident of the UK, Channel Islands or Isle of Man are excluded

Must be a resident of the UK, Channel Islands or Isle of Man are excluded

Length of cover
Minimum term

Not applicable

3 years

1 year, up to the child’s first birthday

Maximum term

No maximum term, plan can continue for the whole of the Person Insured’s life

Up to the end of the mortgage term

Maximum age

Not applicable

70 years old

67

Premiums

Payment of premiums will be for 30 years until the Person Insured’s 90th birthday

Minimum premium

£7 monthly

£5 monthly

No Premiums

Maximum premium

£50 monthly for each plan.

£100 for all plans through Tesco Bank, regardless of the number of policies with the company

Not applicable

Not applicable

Guaranteed premiums

Yes

Yes

Not applicable

Reviewable premium

No

No

Not applicable

Other benefits

Critical Illness Cover (as an add-on)

  • Critical Illness Cover (as an add-on)
  • Terminal illness
  • Repayment Guarantee

None

Exclusions

For the first year, death due to natural causes, illnesses and pre-existing conditions are excluded.

No payments if the cause of death is due to:

  • Participation in a criminal act, war, civil commotion or riot
  • Self-inflicted injury
  • Abuse of alcohol or drugs
  • Flying, except if the Person Insured is a fare-paying passenger in a commercially licensed aircraft

In addition, no payments will be made if the Person Insured is living outside Europe, the United States, Canada, Australia or New Zealand at the time of death.

No payments if :

  • Terminal illness is diagnosed within 18 months prior to the termination of the policy
  • Participation in a criminal act, war, civil commotion or riot
  • Self-inflicted injury
  • Abuse of alcohol or drugs
  • Flying, except if the Person Insured is a fare-paying passenger in a commercially licensed aircraft

No payments if death is a result of:

  • Suicide
  • HIV-related illness
  • Non-prescribed drug abuse
  • A history of alcohol abuse

Also, the Person Insured must not be a recipient of cancer treatment (including leukemia and lymphoma) within the 12 months prior to applying for the cover.

Plan Details

Payment of Benefit. The policy will pay out the death claim when the Person Insured dies within the plan term and as long as the policy remains in force.

Other Conditions:

Number of policies. More than one policy issued by Tesco is allowed, as long as the total monthly premium does not exceed the maximum limit.

Joint life cover. This option is only available for the Mortgage Life Cover, if two persons are named in the mortgage.

Additional Benefits/Options

Critical Illness Cover. This is an optional benefit is available for Over 50s Life Cover and Mortgage Life Cover. This pays out the benefit amount for any one event:

Other details:

Terminal Illness Benefit. This is automatically included in the Mortgage Life Cover, as well as listed in the list of covered illnesses for the Critical Illness Benefit. This pays out the sum insured when the Person Insured is diagnosed as terminally ill.

Other details:

Repayment Guarantee.  This is for decreasing life cover. This benefit guarantees that the outstanding loan amount at the time of the Person Insured’s death will be paid, as long as:

Funeral Benefit Option. For those who get the Over 50s Life Cover, this optional benefit is given free of charge. This pays a portion of the fixed benefit amount to cover funeral costs, as provided by The Co-operative Funeralcare.

Other details:

How to make a claim

When making a claim, the beneficiary will usually need to prepare:

For Critical Illness or Terminal Illness Benefits, the claimant may also need to undergo medical examination by a doctor appointed by the company. The medical certificates provided should be made by medical practitioners that are living in and practicing in approved countries, including countries belonging to the European Union, the United States, Canada, Australia, Norway, Switzerland, New Zealand and Malta.

To secure your family's future, fill in the form on the right or call 0808 231 5178 and get your term life insurance quote now.

Types of insurance:
Term life insurance 101:
Life insurers:
*Scottish Provident 2012 life cover claims paid report.