Read The Small Print

The warning echoes of reading the small print, are resounding for potential policy holders, when they consider buying a life insurance cover. Whether this be from an established financial services company, or straight off the shelf at a supermarket chain, reading the small print, in close detail before committing, will always be of great benefit.

The life insurance industry has changed in recent years, with ‘no medical’, insurance policies for over 50s and insurance with instant underwriting becoming more and more popular. For instance, recent Asda and Tesco life insurance policies for 50 plus customers, may be expensive for those that live to an old age.

This means that customers could end up paying through the roof for a policy that would only returns a limited amount. Life insurance experts don’t condemn the policies, but make it clear that an informed decision can only be made with a whole of market search.

In response to this Asda, recently made comments on the over 50s policy provided by Tesco.

The Head of Insurance at ASDA, Gideon Ingham, reportedly said: "Tesco's offer is another addition to all the other Over 50s life cover products that are unfair as consumers could have to pay in far more than their cover will pay out. We cannot understand why another new product to market hasn't got a cap on it. This launch looks like every little premium helps Tesco and we are asking them to review its offering and introduce a cap."

Ingham reportedly continued: "For too long, thousands of Over 50s Life Cover policy holders have been penalised for living longer by having to pay much more in premiums than is paid out. ASDA has a long standing reputation as a consumer champion and will go that extra mile to identify policies which do not unfairly penalise customers. Our new cover is going to ruffle a few feathers, but it's high time that this customer group was treated fairly - so we think that all over 50s life policies should put a cap on premium payments."