Tesco Bank launches free life insurance for expectant parents
Tesco Bank has launched free life insurance for new and expectant, but how good is it?
Soon-to-be parents (including couples who have been officially matched to a child for adoption), and those who’ve had a child within the last four years, can get the free life insurance policy by joining the free Tesco Loves Baby Club. The policy is underwritten by Aviva, and provides £15,000 worth of cover for each parent in the event of their passing.
This is substantially lower than most life insurance policies, and wouldn’t be enough to secure a family’s future, but it’s much better than nothing, and you can’t argue with the price.
The policy lasts for one year, so if you get it as a stop-gap, ensure you review your finances and consider getting a higher level of cover in place. Use our comparison tool to find the best life cover for you and your loved ones.
Tesco Bank says it won’t auto-renew the policy when it ends and adds that it’s launched the offer to help parents face the cost of a new member of the family.
“Only around half of all parents with young children have life cover,” says Tim MacIvor, spokesperson for Tesco Bank Insurance.
“We want to help parents in any way we can. That is why eligible Tesco Loves Baby Club members can now benefit from a year’s free life insurance, providing them with a little helping hand at a time when their finances are most likely to be stretched.”
Generally thought of as being interchangeable with life assurance, but isn’t. Life insurance insures you for a specific period of time, at a premium fixed by your age, health and the amount the life is insured for. If you die while the policy is in force, the insurance company pays the claim. However, if you survive to the end of the term or cease paying the premiums, the policy is finished and has no remaining value whatsoever as it only has any value if you have a claim. For this reason, life insurance is much cheaper than life assurance (also called whole of life).