Review of Sainsbury's Life Insurance

Sainsbury’s offers life insurance policies for UK residents between the ages of 18 and 80. Their four policies are Life Insurance, Decreasing Life Cover, Over 50s Life Protection and Parent Free Life Cover. All are very flexible and available in a range of payment methods.

Known primarily for its high street supermarket presence, Sainsbury’s offers very competitive life insurance policies through its financial arm, Sainsbury’s bank. These policies are particularly attractive through the ability to make changes after they have started and offers such as £15,000 worth of cover is available to parents of young children for 12 months.

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Pros
  • Cover from just £5 per month
  • You choose the amount and length of cover
  • Joint cover available option for you and your partner
  • Very flexible policies
  • Lower premiums for non-smokers
  • Double Nectar points at Sainsbury’s throughout your policy.
  • Guaranteed acceptance for UK residents aged 50-80 for Over 50s Life Insurance
  • No medical or health assessment needed
Cons

About Sainsburys Life Insurance

Sainsbury’s life insurance is provided through Sainsbury’s bank. Originally launched in 1997 as a joint enterprise between the supermarket giant and the Bank of Scotland, Sainsbury’s bank has been wholly owned by Sainsbury’s since 2014. Its head office is in Edinburgh and the bank has over 1.8 million active customers.

Sainsbury’s bank offers a variety of financial products, such as insurance, credit cards, loans, and mortgages. If you’re a Nectar card holder, then you’ll receive additional points and preferential rates when shopping at Sainsbury’s if you take out a Sainsbury’s bank life cover policy.

Sainsbury’s Life Insurance Options: Out Honest Breakdown

Sainsbury’s offer four different insurance policies: Life Insurance, Decreasing Cover, Over 50s Life Cover, and Parent-Free Life Cover. Critical illness cover can also be added to all policies in exchange for increased premiums. All their policies are provided by Legal & General and cover can be found for everyone aged 18-80.

Life cover policies from Sainsbury’s have a variety of different payment types, with every plan giving you choice between at least 2 of the level, decreasing, or increasing cover. All these are explained below, and are an indicator of the flexibility that makes Sainsbury’s plans attractive: unlike some providers they allow you to make changes to a policy after the start date.

With cover from Sainsbury’s you can make a claim after one year, regardless of the cause of death, or within one year due to accidental death. If you die within the first year of starting your plan, for a reason other than accidental death, only the premiums already paid will be returned to you.

All of the Sainsbury's life insurance options provided are detailed below to help you find the right policy to suit your needs.

Different Types of Cover Offered by Sainsbury’s

Level Cover

  • Both your premiums and benefit will stay the same for the duration of the Sainsbury's life insurance policy.
  • Cover up to a maximum £300,000.
  • Term cover (with Life Insurance): policy is taken out for a specific time period and claims can only be made during that period.
  • Whole of life cover (with Over 50s protection): the amount of cover and premium rate stays the same for the duration of your life up to your 90th birthday.
  • Available for Sainsbury’s Life Insurance and Over 50s Life Cover.

Decreasing Cover

  • Your premiums will stay the same but your benefit amount will decrease across the term of the policy.
  • Designed to cover a debt that reduces over time such as a mortgage.
  • Term cover: this policy lasts only for the duration of an agreed upon time period and claims can only be made within that time frame.
  • Cover up to a maximum £300,000.
  • Available for Sainsbury’s Life Insurance only.

Increasing Cover

  • Both your premiums and benefit rise in line with the Retail Price Index (RPI) across the term of the policy up to a maximum 10% increase.
  • Your benefit will increase directly with the RPI, whereas premiums rise at 1.5x that rate.
  • Designed to reduce effect of inflation making your benefit less valuable over time.
  • Whole of life cover, but during the policy you can freeze your premiums and benefit amount if your premiums are rising too fast.
  • Available on Sainsbury’s Over 50s Life Cover Only.

Sainsburys Life Insurance Options Available

Life Insurance

  • Available to UK residents aged 18-77 (falls to 74 if you take out a decreasing cover policy).
  • Can be taken out for a term of between 1 and 40 years (decreasing cover must be taken out for a minimum of 5 years).
  • Policy must end before 80th birthday.
  • Cover available from £5 a month.
  • Maximum benefit of £300,000.
  • Flexible:can make changes at any time during policy term.
  • Available with either level or decreasing cover (see above).
  • Terminal illness cover not included unless you also take out critical illness cover.
  • Can take out joint policies.
  • Double Nectar points at Sainsbury’s as long as policy is valid.
  • Lower premiums for non smokers.
  • Critical illness cover can be added extra (details below).
  • If you stop paying your premiums, cover is cancelled after 30 days with no refund.

Critical Illness Cover

Critical illness cover can be added extra to Sainsbury’s life insurance policies. Your policy will include terminal illness cover as standard but to be covered for a critical illness you need to add critical illness insurance. The policy will pay out if you are diagnosed with one of the conditions listed and will also cover your children. Here are the details:

  • Has to be taken out as an extra to a life cover policy.
  • Adds more cover, but increases premiums.
  • Includes accidental hospitalisation benefit: will pay £5,000 if you are in hospital with physical injuries for a minimum 28 consecutive days following an accident.
  • Cover pays out 25% of your life protection cover amount up to a maximum of £25,000 - neither your amount of cover nor your premiums on your main policy will be affected.
  • Can add a ‘waiver of premium’ option to the plan, meaning you won’t have to pay premiums after 26 weeks if you are incapacitated by sickness or injury to the point that you can’t work to afford them.
  • Your children are covered at no extra cost if they are diagnosed with a critical illness listed in the Sainsbury's life insurance policy.
  • You can make a maximum of two claims related to your children throughout the policy with each paying 50% of your amount of cover up to a maximum of £25,000.
  • Various other children-related benefits are offered, such as a £1,000 childcare benefit and £5,000 child accident hospitalisation benefit.
  • Includes accidental hospitalisation benefit: will pay £5,000 if you are in hospital with physical injuries for a minimum 28 consecutive days following an accident.
  • Can add a ‘waiver of premium’ option to the plan, meaning you won’t have to pay premiums after 26 weeks if you are incapacitated by sickness or injury to the point that you can’t work to afford them.

Over 50s Life Insurance

  • Guaranteed acceptance for UK residents aged 50-80.
  • Whole of life plan, lasts until your death.
  • Premiums stop at 90 but cover continues for life.
  • No medical or health assessment required by Sainsbury's life insurance.
  • Claims can be made after 1 year for all causes of death - if you die within the first year for any cause other than accidental death, only the premiums you have already paid will be paid.
  • Lots of choice in your premium and benefit rate.
  • Cover up to a maximum £9,974 (for a 50 year old taking out a policy with £25 premiums).
  • Insurance available either as level or increasing cover (see above).
  • Flexible: can make changes during term of policy, including switching from increasing to level cover if your premiums are rising too fast.
  • Cover is cancelled after 30 days if a premium payment is missed.

Parent Free Life Cover

If you haven't taken out an insurance for life policy with Sainsbury’s bank or Legal & General in the last 5 years, then you might be eligible for a year of £15,000 of life cover absolutely free. Both you and your partner can apply for separate policies if eligible, here are the details and requirements:

  • Free Sainsbury's life insurance cover of £15,000 for 12 months.
  • Won’t pay out if death is self inflicted or caused by a condition you have had within 12 months prior to starting the policy.
  • Available for parents aged 18-45 who are UK residents and apply before their child’s 5th birthday.
  • You must be named on your child’s birth certificate, full adoption certificate, final residence order, or special guardianship order.
  • You can’t have taken out a policy with either Sainsbury’s bank or Legal & General in the last 5 years.
  • In the event of your death, the benefit is paid to your estate.

Sainsburys Life Insurance: Conclusion

Sainsbury’s offer a good selection of policies and as such almost anyone can find a plan that meets their requirements. While critical illness cover has to be taken out as extra, the amount of coverage offered makes it a good option compared to some other providers - particularly in the cover it gives for your children.

The ability to set your premium and benefit levels very freely, and being able to decide whether you want the level, decreasing, or increasing cover, means that you’ll definitely be able to find a good policy with Sainsbury’s. With that in mind, it’s definitely worth getting a quote to see what cover could be available to you.