Sainsbury’s bank life insurance review – is it any good?

18 min Read Published: 09 Feb 2022

Sainsbury's bank life insuranceSupermarkets are a place where you can buy financial products as well as your fruit and veg. In this article, we describe what types of life insurance can be bought through Sainsbury's bank paying particular attention to the quality and price so that you know if they are a good buy.

We'll also share a one-stop search that may help you find the best and cheapest life insurance for your personal circumstances and you can get up to £100 cashback too.

Who is Sainsbury’s Bank

Sainsbury's Bank was the first supermarket to set up a bank in the UK in 1997. It set out to offer financial products and services under its Sainsbury's banner including credit cards, loans, travel money as well as car, home, pet, travel all of which can be bought either online or over the telephone. Sainsbury's Bank is registered and authorised by the Financial Conduct Authority (FCA) under registration number 837287. Sainsbury's Bank sells life insurance, mortgage life insurance and over 50s life insurance which are all provided by Legal & General one of the leading life insurance companies in the UK.

Types of life insurance you can buy through Sainsbury’s Bank

You can buy life insurance on a level, decreasing and on an over 50s basis with Sainsbury's bank. You can add critical illness cover to your life insurance to cover against any serious illness diagnoses too.

Sainsbury's life insurance options include:

  • Level life insurance - a very simple life cover that will pay out a lump cash sum of money if you die within the term of the policy.
  • Decreasing life insurance - this life cover pays out a lump cash sum if you die within the term but the amount that you are covered for steadily reduces each year so that it is reducing in line with your repayment mortgage balance and as such is only suited to covering a repayment mortgage.
  • Over 50s life insurance - this life cover doesn't ask any health questions so you're guaranteed to be accepted as long as you qualify. It will pay out when you die whenever that happens so it covers you for the rest of your life but it is limited to a small amount of cover that is usually enough to pay for a funeral or leave a small gift behind after you die.

If you'd like to understand different types of life insurance in detail then you should read our article, "Types of life insurance explained"

How does Sainsbury's life insurance work?

Sainsbury's life insurance works according to the type of life insurance you choose. Essentially, each option pays a lump sum of money if you die - the Life insurance and Decreasing life insurance options pay out if you die within the years that you're covered but the Over 50s life insurance will pay out when you die regardless of when that happens.

Sainsbury's life insurance includes terminal illness benefit which lets you claim your death benefit early if you are diagnosed as terminally ill with less than 12 months to live. You can make a valid claim as long your consultant and Legal & General's chief medical officer confirm that your lifespan is likely to be less than 12 months.

You have the option to add critical illness cover to your life insurance which will pay a lump sum of money if you are diagnosed with a serious illness.

Sainsbury's life insurance summary

Product name  Sainsbury's Life insurance 
How it works Pays the lump sum amount that you choose to cover if you die during the term
Premium Monthly premium is fixed for the duration of your policy and will only change if you have chosen the increasing option
Minimum monthly premium £5 per month
Minimum amount of cover Amount that achieves £5 per month premium
Maximum amount of cover £9,000,000
Minimum term 1 year
Maximum term 50 years
Minimum age at entry 18 years old
Maximum age at entry 77 years old
Maximum age at expiry 90 years old
Included as standard Terminal illness benefit - early death benefit if you have less than 12 months to live

Accidental death benefit up to £300,000 for up to 90 days while your application is processed as long as you're under 55 years old

Optional extras Critical illness cover - a lump sum payment if you are diagnosed with a serious illness that is listed in the policy terms

Increasing cover - increases the cover amount in line with inflation (Retail Price Index) each year and the monthly premium increases by 1.5 times RPI each year to reflect the extra cover

Excluded Suicide within the first year of your policy

Sainsbury's decreasing life insurance summary

Product name  Sainsbury's Decreasing Life insurance 
How it works Pays the lump sum amount that you choose to cover if you die during the term
Premium Monthly premium is fixed for the duration of your policy but lower than the premium for an equivalent level life insurance.
Minimum monthly premium £5 per month
Minimum amount of cover Amount that achieves £5 per month premium
Maximum amount of cover £9,000,000
Minimum term 5 year
Maximum term 50 years
Minimum age at entry 18 years old
Maximum age at entry 74 years old
Maximum age at expiry 90 years old
Included as standard Terminal illness benefit - early death benefit if you have less than 12 months to live

Accidental death benefit up to £300,000 for up to 90 days while your application is processed as long as you're under 55 years old

Optional extras Critical illness cover - a lump sum payment if you are diagnosed with a serious illness that is listed in the policy terms
Excluded Suicide within the first year of your policy

Sainsbury's over 50s life insurance summary

Product name  Sainsbury's Over 50s life insurance
How it works Pays a lump sum of money when you die
Premium Monthly premium is fixed for the duration of your policy and will only change if you have chosen the increasing option
Minimum monthly premium £5 per month
Minimum amount of cover Amount that achieves £5 per month premium
Maximum amount of cover £10,000
Minimum age at entry 50 years old
Maximum age at entry 80 years old
Included as standard Terminal illness benefit - early death benefit if you have less than 12 months to live
Optional extras Increasing cover - increases the cover amount in line with inflation (Retail Price Index) each year and the monthly premium increases by 1.5 times RPI each year to reflect the extra cover
Excluded Suicide within the first year of your policy

Sainsbury's critical illness insurance option

If you buy either level life insurance or decreasing life insurance you can add critical illness cover which will pay a lump sum if you are diagnosed with a serious illness. Sainsbury's critical illness cover is provided by Legal & General as your life insurance is also provided by this company.

The critical illness cover pays out the full amount that you're covered for if you are diagnosed with one of 38 different serious illnesses which include:

  • Bacterial meningitis
  • Benign brain tumour
  • Blindness
  • Cancer
  • Cardiac arrest
  • Heart attack
  • Multiple sclerosis
  • Paralysis of limb
  • Parkinson’s disease
  • Stroke
  • Total and Permanent Disability

And there is a partial payment if you are diagnosed with:

  • Carcinoma in situ of breast - requiring treatment
  • Low-grade Prostate cancer - treated by surgery

Sainsbury's critical illness insurance additional benefits

  • Accident hospitalisation benefit - £5,000 can be claimed if you spend more than 28 consecutive days in hospital after an accident (covers the adult who is insured as well as their children)
  • Children’s critical illness cover - 50% of your cover amount up to £25,000 is paid if your child is diagnosed with a critical illness (children must be aged between 30 days and 18 years old or up to 21 years old if they're in full-time education)
  • Child funeral benefit - £4,000 can be claimed
  • Childcare benefit - £1,000 per month can be claimed for children under the age of 5 years old if you claim critical illness benefit
  • Family Accommodation Benefit - £100 for every night that your child spends in hospital can be claimed in the three months immediately following diagnosis of one of the critical illnesses covered up to a maximum of £1,000 overall.

How much does Sainsbury's life insurance cost?

The cost of Sainsbury's life insurance will depend on the following:

  • Type of cover
  • Amount of cover
  • Term of cover
  • Your age
  • Your health
  • Your lifestyle
  • Whether you smoke

Below, we compare the cost of Sainsbury's life insurance with the cheapest equivalent life insurance that we could find from across the market.

Sainsbury's life insurance price comparison - £250,000 over 25 years

Age Sainsbury's life insurance monthly premium Cheapest premium we could find
25 £6.50 £5.99
35 £11.91 £10.05
45 £25.71 £20.89
55 £68.91 £54.94

Sainsbury's decreasing life insurance price comparison - £250,000 over 20 years

Age Sainsbury's decreasing life insurance monthly premium Cheapest premium we could find
25 £6.00 £4.88
35 £8.34 £6.62
45 £17.02 £14.03
55 £42.87 £34.39

Sainsbury's Over 50s life insurance cover comparison - £20 per month premium

Age Sainsbury's 0ver 50s cover amount Best amount of cover  we could find
50 £6,422 £8,343
60 £4,381 £5,929
70 £2,894 £3,282
80 £1,073 £1,523

Sainsbury's life insurance premiums are not the cheapest that we could find for any of the types of life insurance that it offers. All of the cheaper alternative policies that we found offered either the same or better cover. Legal & General, which is the company that provides the life insurance that Sainsbury's distributes, was cheaper in some cases than buying the equivalent cover with Sainsbury's.

Sainsbury's life insurance reviews

Sainsbury’s bank is rated 3.4 stars out of a possible 5.0 stars on independent review site Trustpilot, based on 6,773 reviews. It is worth noting that this covers all of its banking services and products and is not limited to life insurance.

Defaqto rate Sainsbury's bank Level term assurance and Mortgage protection life insurance 3 stars which indicates that the products are of average quality. Legal & General's Level term assurance receives a 4-star rating from Defaqto and so this could indicate that the life insurance you would buy directly with Legal & General is better than the one it provides through Sainsbury's bank.

Sainsbury's life insurance nectar points offer

If you buy your life insurance with Sainsbury's, you'll receive up to £110 worth of Nectar points once you have paid 5 months of premiums. As long as you provide your Nectar card number when you apply, Sainsbury's will award the points subject to the value of your life insurance premium. You can receive:

  • 10,000 Nectar points (worth £50) if your premium is under £8.50
  • 16,000 Nectar points (worth £80) if your premium is £8.50 - £20.00
  • 22,000 Nectar points (worth £110) if your monthly premium is over £20

You will also receive double Nectar points on your base points for as long as you carry on paying for your life insurance.

Sainsbury's life insurance pros and cons

Pros

  • Brand attraction of Legal & General
  • Ease of application online
  • Bonus Nectar points

Cons

  • Not the most competitive price for life insurance
  • Lack of extra services such as access to virtual GP services
  • Fewer types of life insurance to choose from than with a specialist life insurance broker*

Alternative ways to buy life insurance

Although Sainsbury's bank offers a reasonable choice of life insurance products, they are limited. If you want to buy a simple life insurance policy that will pay a lump sum if you die, there may be better products available that give policyholders access to services such as virtual GP appointments, mental health support and even discounts for health and wellbeing services like gyms, health checks and so on.

It is difficult to compare Sainsbury's life insurance premiums with others as you can't obtain a Sainsbury's life insurance price alongside other providers' prices to compare.

In almost all cases, it is best to buy your life insurance through a broker or adviser who is able to search the whole market for the best products and prices. These will usually include Legal & General's direct price even if they don't include Sainsbury's life insurance.

A specialist life insurance broker will do more than search the market, they will offer guidance that helps you with choosing how much life cover you need, how long you need it for and which insurance companies will suit your personal circumstances. At Money to the Masses we have tried and tested a life insurance specialist company where you can receive bespoke advice that is tailored to what you need and how much you want to spend.

One of the key frustrations that people face when buying life insurance is how complex the application process can be but you can avoid this process by speaking with an expert. They know how to navigate the underwriting process, liaising with the insurance company on your behalf ensuring your application is processed efficiently.

If you speak to the specialist broker* and do buy the life insurance they recommend, you can get up to £100 cashback as a Money to the Masses reader.

Summary

Sainsbury's Bank offers level term, decreasing term and Over 50s life insurance. It is provided and underwritten by Legal & General but does not include additional RedArc care and support services included with Legal & General's direct life insurance products.

There is an attractive offer of bonus Nectar points when you buy your life insurance with Sainsbury's Bank. However, the value of the Nectar points may be outweighed by the extra cost you may have to pay over the years compared with cheaper, equivalent or improved alternatives.

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. This link can be used if you do not wish to help Money to the Masses and do not wish to qualify for the cashback referred to in the article