Level and decreasing life insurance
Get financial help for your family if you pass away
We offer two options when you apply for life insurance - level term or decreasing term. Level term means the amount paid out is fixed over the lifetime of the policy, so the purchasing power will be reduced by the effect of inflation. Decreasing term decreases the amount paid out over the lifetime of the policy broadly in line with mortgage or loan repayments.
How does it work?
What is Life Insurance?
A cash lump sum when your family need it most
Tesco Bank Life Insurance is designed to provide your family with some financial help if you die during the policy term.
It pays out a lump sum if, during the policy term, you die or are diagnosed with a terminal illness. More about terminal illness benefit
Your family can then use this lump sum for any purpose. Whether it's help towards paying household bills, childcare, or repaying the mortgage, this could provide peace of mind for you and them.
If you are 18 to 85 and a UK resident you can apply for Tesco Bank Life Insurance.
You can cancel your policy at any time, but you won't get any money back.
Please make sure you check the policy documents before getting a quote or applying. See our policy documents
Cover your situation
Customise the cover to your situation
1) Choose level or decreasing cover:
- Level cover – the amount you're covered for stays the same throughout the term - this can be a good option if you want to help protect your family, as it leaves a lump sum that your dependants can use towards living expenses. It may also be appropriate if you have an interest-only mortgage. The purchasing power of your sum insured will be reduced by the effect of inflation.
- Decreasing cover – the amount you're covered for reduces over the term, broadly in line with the amount you owe under a mortgage. It can also be used to cover other loans.
2) Choose the amount you want to be covered for. Use this handy calculator to work out how much your dependants might need (provided by Aviva Life & Pensions UK Limited).
3) Choose how long you want to be covered for: between 5 - 50 years.
4) Choose single life or joint life cover - so you can protect yourself, or you and your spouse/partner under the same policy. If you’re taking out a joint policy, it’s worth noting that we only pay one lump sum, and this will be on the first successful claim. If you want cover that pays out on both deaths you should consider taking out two single life policies.
5) You can choose to include critical illness cover, for an additional premium. If you choose critical illness, the maximum age and term are reduced.
How much will it cost?
It might cost less than you think
You might be surprised at how little life insurance can cost. The amount of your monthly premium will depend on your sum insured, the type of cover you choose, your personal circumstances and how long you choose to be covered for.
For example, a healthy non smoking 35 year old wanting £200,000 of cover over 20 years could pay just £11.64 a month for decreasing cover or £15.77 a month for level cover (correct as at 07/12/15, subject to change).
Your monthly premium will never go up - even if there's a change in your health or lifestyle.
How do you claim?
Help when you need it most
Our friendly UK call centres are here to guide you through the claim process.
Have you thought about Critical illness cover?
Help so that your medical problems don’t become financial problems if you or a child is diagnosed with a defined critical illness.
Also in life insurance
Tools and guides
Contact us - we're here to help
Need a few questions answered? Want to chat rather than scroll? Our UK-based teams are here to talk to you six days a week. Lines are open Monday to Friday 8am-8pm and Saturday 9am-5pm.
Call 0800 015 7586 to chat about new policies.
Key product information and policy documents
Defaqto is an independent researcher of financial products.
About Terminal Illness Benefit
The policy will pay out the guaranteed lump sum if you're diagnosed with a terminal illness before the last 12 months of your policy and you're not expected to live for more than 12 months.
If a Terminal Illness claim is paid the policy will end and no other amount will be paid on death.
Before you buy this policy, please read the key facts and policy conditions to make sure you're happy that this policy is right for you.
- Key features | Tesco Bank Life Insurance PDF, 264kb