Sainsburys Life Insurance Policies Review 2020
J Sainsbury plc is the parent company of Sainsbury’s, the third largest supermarket chain in the UK.
The company also has banking and property interests. The banking division operates under the trading name Sainsbury’s Finance and offers loans, bank accounts, home finance, credit card, and insurance products.
Life insurance is provided by Legal & General, a major UK insurance provider. When we research life insurance products suitable for your insurance needs, we review the policies offered by Sainsbury’s.
Low Entry Level Policies
Life insurance begins at just £5 per month and comes in three types: level term, mortgage term, and mortgage decreasing term. Each kind provides a cash lump sum that can be used to repay a mortgage or provide financial peace of mind to the family if the insured dies during the covered term.
Level term insurance features a steady benefit and premium throughout the policy term.
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Mortgage life insurance is designed to repay an outstanding mortgage upon the death of the insured. A mortgage term policy features a cash lump sum that remains the same throughout the policy term. It is intended for use with an interest-only mortgage.
A mortgage decreasing term policy features a cash lump sum that decreases roughly in line with the outstanding balance on a repayment mortgage.
If the individual is diagnosed with a terminal illness during the term, the benefit under each of these plans will be paid early. With mortgage life insurance coverage, the company offers free life coverage to individuals who are in the process of purchasing a policy.
It also provides SmoothMove, a free moving day rescue service available 24 hours a day. While their life insurance applications are being processed, all life insurance applicants receive free accidental death coverage, subject to a 90-day limit.
Waiver of premium and critical illness coverage are two optional features available with these plans at an added cost. Waiver of premium allows covered individuals to stop paying premiums if they are unable to work for longer than 26 weeks due to an injury or illness.
Premium payments must recommence when the insured is able to return to work.
With critical illness coverage, the insured is covered for up to 39 critical illnesses. If the individual is diagnosed with a critical illness or dies during the policy term, a cash lump sum benefit will be paid. If the insured is still living, the money can be applied to private medical treatment or maintaining the lifestyle. If not, applying it to the outstanding mortgage balance is a common use.
Terms of between two and 40 years are available for level term life insurance that includes critical illness coverage. If decreasing term insurance is selected, terms range from five to 40 years. With either type of policy, the term must conclude before the 70th birthday.
Level term insurance with critical illness coverage offers a choice of guaranteed or reviewable premiums. A guaranteed premium remains the same unless the insured makes changes to the policy. A reviewable premium is reviewed every five years of the policy term and may remain the same, decrease, or increase.
Fixed Whole Of Life Plan
Sainsbury’s also offers an over 50’s fixed whole of life insurance plan designed to help with outstanding bills, funeral costs, or provide beneficiaries with a lump sum. Acceptance is guaranteed for UK residents age 50 to 80. The application does not include a health or medical assessment requirement.
Premiums start at £5 per month and will not increase during the policy lifetime. The insured must pay premiums until age 90, at which point premium payments stop but coverage continues for the remainder of the lifetime.
If an individual insured by an over 50s plan dies within the first two years of the policy effective date, all premiums paid will be refunded but no benefit will be paid, except in one case. If death is due to an accident, the full cash lump sum will be paid (without refunding premiums).
If death occurs after two years, the cash lump sum benefit will be paid, regardless of the cause of death.
These life insurance policies do not have a cash-in value. Premiums must continue to be paid until the earlier of death or plan termination date. If payments cease, the coverage will end and premiums paid will not be refunded. Depending on how long the insured lives, total premium paid could exceed the cash benefit. Inflation can have a negative effect on the value of this benefit.
Sainsbury’s may have the level term, mortgage term, mortgage decreasing term, or over 50s life insurance policy that you desire. Let us determine this when we search the market for the best coverage for your needs and budget. Take a few minutes to complete our online quote request form and submit it electronically.
We do the rest of the work and provide you with the best deals in a short period.
Sainsbury’s Bank plc
Registered Office: 33 Holborn, London EC1N 2HT (registered in England and Wales, no. 3279730)
Freephone: 0800 027 7166