Tesco Bank Customers Looking For Life Insurance Urged to Shop Around

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Research from payingtoomuch.com shows that people who buy life insurance from Tesco Bank could be hundreds of pounds worse off than if they bought a similar life insurance policy from Tescocompare.com instead.

It would appear that Tesco Bank are happy to make extra profits exploiting some of their loyal customers by charging significantly more for life insurance than similar cover bought from Tescocompare.com.

Research from payingtoomuch.com shows that people who buy life insurance from Tesco Bank could be hundreds of pounds worse off than if they bought a similar life insurance policy from Tescocompare.com instead. The research reveals that life insurance from Tesco Bank could cost around a third more than a similar life insurance policy from Tescocompare.com.

For example, a 34 year old buying £200,000 of level term life insurance over 20 years would pay £838 more with Tesco Bank than with a similar policy from Tescocompare.com over the life of the policy. A 44 year old buying the same cover from Tesco Bank would pay £1,759 more than it would cost from Tescocompare.com (in these examples,Tesco Bank is 32 and 34 per cent more expensive than Tescocompare.com respectively).

Tesco Bank is trying to attract new life insurance customers until the 21st May 2013 with the promise of 3,500 Tesco Clubcard points - worth £35 if the points are redeemed in store. However it’s unlikely that this will go anywhere near to compensating for the potential extra cost of buying life insurance from Tesco Bank.

Life insurance could be essential for people who have someone who depends on them financially as it will provide a lump sum if the policyholder dies. The research clearly shows the importance of shopping around, especially if you are a Tesco Bank customer.

Michael Ward of payingtoomuch.com, says, ‘In these tough economic times when people need ‘every little help’ they can get, it would seem that Tesco are happy to give ‘very little help’ instead to its loyal customers. I would urge Tesco customers to shop around for life insurance and give Tesco Bank life insurance a wide berth.’

‘It would appear that Tesco Bank are happy to make extra profits exploiting some of their loyal customers by charging significantly more for life insurance than similar cover bought from Tescocompare.com.’

‘It’s very disappointing that Tesco doesn’t apply its new price promise to its life insurance from Tesco Bank as well as the cost of groceries. Tesco’s new price promise will automatically give customers money back if their shopping would have been cheaper at one of the other three big supermarkets.’

‘And while Tescocompare.com may give cheaper quotes than Tesco Bank, people may be able to save even more money protecting their family using a comparison site, like, payingtoomuch.com.’

Example Premiums (correct at 17th March 2013)

£200k Level Term Life Insurance for 20 years for a 34 Year Old
Monthly premium £14.34 from Tesco Bank. Total premium over 20 Years £3,441.60.
Monthly premium £10.85 from Tescocompare.com. Total premium over 20 Years £2,604. Saving £837.60 compared to Tesco Bank.
Monthly premium £9.80 from payingtoomuch.com. Total premium over 20 years £2,352. Saving £1,089.60 compared to Tesco Bank.

£200k Level Term Life Insurance for 20 years for a 44 Year Old
Monthly premium £29.09 from Tesco Bank. Total premium over 20 Years £6,981.60.
Monthly premium £21.76 from Tescocompare.com. Total premium over 20 Years £5,222,40. Saving £1,759.20 compared to Tesco Bank.
Monthly premium £20.40 from payingtoomuch.com. Total premium over 20 years £4,896.00. Saving £2,085.60 compared to Tesco Bank.

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