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Compare Tesco Life Insurance productsGrocer giant widens its offer to financial services.

posted 1 Sept, 2009

Tesco Finance has a large portfolio of life insurance products. There are usual fixed term, mortgage and critical illness life cover plans. All plans have in common that they start from only £5 premium per month, except the Over 50's life assurance plan, which starts from £10 per month.

Tesco Finance offers three ways of application for the life insurance, via an online form, by a call to 0845 309 4403 number or by simply walking into one of 30 in store branches of Tesco Financial. Before you start filling the online form or before you decide to give them a ring, you need to have a total amount of cover calculated. In order to help you with that Tesco has a little 'Life Cover Calculator' and it is really a little one, consisting of nothing more than 7 input lines asking about your general expenses, like outstanding mortgage, other outstanding loans, funeral costs, costs of education for your children and other similar household expenses.

One special thing about buying a financial product from Tesco Finance is that all the money that is spent on that product goes towards accumulation of Tesco Clubcard points. These Clubcard points than can help you get most out of your shopping in Tesco supermarkets. This kind of deal can not be matched by any of established retail banks.

Cover is available for anyone between the age of 17 and 64. The main criteria that determine your monthly premium are your lifestyle, health, history of any diseases in your family and your individual circumstances, like weather you have the mortgage and have you started a family.

In the case of the Tesco's critical illness life insurance you are offered two options, one being the fixed term cover and the other is the mortgage cover. With critical illness cover, for claim to be valid, the symptoms of the disease need to be permanent and significantly debilitating. For example, some less advanced cases of cancer might be excluded from this policy. The disease needs to be on the Tesco's list, which is available on their web site.

Tesco Personal Finance Life Insurance Tesco Finance is a newcomer to UK retail banking sector

posted 11 Aug, 2009

Tesco Personal Finance had been able to use its large customer base to cross sell financial services. First entry into the financial sector for Tesco was back in 1997 via joint venture with NatWest. But once Tesco developed its own experience it was time to set up on its own, so NatWest and Tesco parted their ways. In the meantime, Teso's main competitor, both in the grocery and financial markets, Sainsbury successfully launched its own Sainsbury's Bank.

The new joint venture was with Royal Bank of Scotland, whose subsidiary companies helped Tesco Finance to start selling life and home insurance products. Purchase of Tesco's financial products, like life insurance, will allow customer to accumulate more Tesco Clubcard points and this strategy proved highly beneficial for Tesco Finance's customers.

In the year 2008 Tesco bought out 50% stake held by the Royal Bank of Scotland and Tesco Finance is now fully owned by its parent company.

For a grocer giant Tesco Finance has an impressive base of 6 million customer accounts across different financial products. Tesco Finance is now the seventh credit card issuer in Britain. These development mean that a grocery giant is well on the way in becoming a retail banking giant. Although not all the financial sectors are doing well for Tesco. For example the firm had stated that life insurance market keeps on being very competitive and Tesco failed to increase a number of life policies it issued, so much that overall profitability suffered.

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