Launched in February 1997, Sainsbury’s was the first UK supermarket to offer banking services. The Sainsbury’s bank offers a range of financial products including credit cards, savings and loans, mortgages, travel money as well as car, home pet, travel and life insurance.
The Sainsbury’s Over 50 life insurance plan provided by Legal & General, offers the choice of two options;
- A Fixed Plan
- An increasing Plan
The fixed over 50 life insurance plan has fixed monthly premiums so you know the amount you pay will never increase in addition to a fixed cash sum.
The increasing over 50 plan has premiums and cover that rise in line with RPI meaning the value of the cash sum won’t be affected by inflation.
The Sainsbury’s Over 50 Life Insurance Review is a guide to help you understand the features and benefits of the plan, options available and things to consider. Do make sure you read, understand and are happy with the terms and conditions of any plan you decide on.
Why choose Sainsbury’s Over 50s life cover
- Guaranteed acceptance with no medical questions to answer
- Cover available to all UK residents between the ages of 50 to 80
- Premiums starting from £5 a month (this is dependent on age on the increasing plan)
- Choice of fixed or increasing plans
- Cover starts after just one year
- 14,000 nectar points when you apply worth £70,000 (available after 5 months)
- Premiums stop on your 90th birthday but your life cover continues
About the Sainsbury’s Fixed over 50 plan
With the fixed plan you choose a monthly premium that you are comfortable with which remains the same for the life of your plan (or until your 90th birthday when payments cease). You do however have flexibility to reduce the monthly premium if you want once the plan has been in place a year but this will of course also reduce the cash sum paid out.
About the Sainsbury’s increasing over 50 plan
With the increasing plan both the amount you pay and the cash sum paid out will increase in line with RPI. Sainsbury’s bank will contact you every year to review your over 50 life insurance plan and advise you of any increase. You can choose to decline the increase but this will mean that you will no longer have the option to increase and therefore the premium and cash sum paid out will remain fixed from that point onwards.
Things to consider
- If you die during the first year, you will not be covered for the full cash sum however your premiums would be refunded.
- Depending on how long you live, there is a chance you could pay more in monthly premiums than the cash sum paid out.
- As the fixed plan has a fixed cash sum, inflation will reduce its value over time.
- If you don’t pay your premiums when due, the cover will be cancelled and no money will be paid out.
- The cash sum paid may be subject to inheritance tax.