Life Insurance to go on sale in Tesco

UK Insurance giant Aviva has this week signed an exclusive five-year deal with Tesco Bank to provide life insurance products to its customers. The agreement will begin later this year and will cover the sale of Aviva’s core protection products, including life insurance and critical illness cover.

The products will be advertised in stores across the country but only available online via Tesco Bank and over the telephone. Customers will be able to choose simplified life insurance, over 50s life insurance and life insurance will critical illness cover.

This move comes as part of the Retail Distribution Review (RDR) which is changing the way that many financial services are sold. Tesco Bank is also expected to enter the UK mortgage market in the coming months although, ominously, the mortgage range has been delayed following technical glitches in moving its existing loan and savings products onto a new IT system.

Analysts have given the news a cautious welcome saying that the new partnership between Tesco and Aviva is good news for the consumer as there will be more choice of life insurance products and it will help the entire market grow.

The movement of simple, useful financial products onto the high street is being seen by many as an antidote to the overly powerful, deeply complex products that require specialist understanding and are blamed for leading many countries to the brink of economic collapse over the last decade.

A key component of this movement away from the closed, impenetrable and often misleading world of financial products is the role of independent financial advisers. It must not be the case that fraudulent selling practises of complex financial products gives way to mass selling of cheap but useless products.

Despite this new deal placing life insurance products on the shelves of Tesco near the groceries and other everyday items, consumers must remember that they should research the market thoroughly and ensure that they are getting a product that is right for them at a price that is right for them.

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