Look after your loved ones

Choosing a life insurance policy is an important decision. After all, you want to feel reassured that your cover will provide financial protection for your family if you die during your policy term. So it’s worthwhile doing your homework. Our guide helps you understand how to find the most appropriate life insurance cover for your needs.

What is life insurance?

Life insurance is an insurance policy that can help with the financial burden of your death on your family if you die during the length of the policy.

Often, this is a cash sum that could help your family:

  • Cover living expenses, bills, or leave them money as a gift
  • Pay off any remaining mortgage repayments or mortgage balance
  • Pay towards funeral expenses
  • Pay off any outstanding bills and debts

It's important to remember that these policies are not savings or investment policies and have no cash value unless a valid claim is made.

Do I need life insurance?

People with families or a mortgage take out life insurance policies to provide financial protection for their loved ones.

To help you make a decision, ask yourself one important question. In the event of your death, would those who are financially dependent on you be able to cope? Would partners or children be able to continue paying mortgage repayments, rental costs, household bills, outstanding debts or funeral costs?

However, not everyone needs life insurance. If you don’t have any dependents or liabilities that you want taken care of, it’s possible that life insurance is not for you.

How does life insurance work?

As complicated as it might seem, life insurance is actually quite straightforward. Depending on your provider, you agree to pay monthly or annual premiums for the length of your life insurance policy. If you die during this time, a tax-free cash sum could be paid to your loved ones or named beneficiaries.

Which life insurance do I need?

There are different types of life insurance to choose from. It’s important to understand these differences so you can select the cover that works best for you.

Everyone needs different things from their insurance – that's life. Worry less about the ‘what ifs’ and get on with your day. Remember that life insurance is not a savings or investment product and has no cash value unless a valid claim is made. Compare our policies and pick the right cover for you.

With Life Insurance, the amount of cover you have remains the same during the length of the policy. It could be used to help protect the family's lifestyle and everyday living expenses or help to protect a mortgage (interest only).

Decreasing Life Insurance is designed to help protect a repayment mortgage, so the amount of cover reduces roughly in line with the way a repayment mortgage decreases.

Critical Illness Cover is an optional extra that can be added for an additional cost when taking out life insurance. This cover could help ease the financial strain if you become critically ill. For more information on the conditions covered, read the guide to Critical Illness Cover.

Why choose a life insurance policy through Sainsbury’s Bank?

Help protect the ones you love by preparing for the future. With us you’ll get:

  • Protection by the one of the UK’s largest life insurance provider, Legal & General
  • Up to £110 of Nectar points †. You'll receive your points within 60 days after you have paid 5 months' premiums.
  • We’ll double the Nectar points on your Sainsbury’s shopping and fuel ‡

The number of Nectar points you receive depends on the type of policy and your monthly premium.

  • If your monthly premium is under £8.50, we’ll give you 10,000 points (worth £50)
  • If your monthly premium is £8.50-£20.00, we'll give you 16,000 points (worth £80)
  • If your monthly premium is over £20.00, we'll give you 22,000 points (worth £110)

Life insurance calculator

Not sure how much cover you need? This life insurance calculator will quickly help you work out how much cover you might need.

Your life insurance questions

For more information about how life insurance works, take a look at our FAQs page.

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More helpful life insurance guides

Joint life insurance guide - Find out everything you need to know about joint life policy.

Accidental Death Benefit – Find out more about the Accidental Death Benefit that may be included with your life insurance policy.

Offer Terms and Conditions

† Up to £110 of Nectar points
1. This offer is only available when you take out a new Life Insurance or Decreasing Life Insurance policy. Purchases through price comparison, cashback, voucher code and similar sites are excluded.
2. After you’ve paid 5 months’ premiums, we'll give you: 22,000 points (worth £110) if your monthly premium is over £20, 16,000 points (worth £80) if your premium is £8.50 - £20.00 or 10,000 points (worth £50) if your premium is under £8.50
3. We'll add the points to your Nectar account within 60 days
4. You need to tell us your Nectar card number when you apply
5. We'll award points on no more than 2 policies per household in any 12 month period
6. Sainsbury's Supermarkets Ltd award the points from this offer. No cash alternative is available
7. Sainsbury’s Bank reserve the right to change or cancel this offer without notice

‡ Double Nectar points  offer – 1. Offer available to customers buying a new life insurance, decreasing life insurance or over 50s life insurance policy. 2. You need to tell us your Nectar card number when you apply; and scan or swipe that card, or input your card number, with each Sainsbury’s purchase. 3. Double points begin on your policy’s cover start date. If you tell us your Nectar card number after your cover start date, double points begin on the date you tell us. 4. Double points stop when the policy is cancelled or you stop paying premiums. 5. Each Nectar account can only collect points from one life insurance policy. 6. It’s only the base points you collect at Sainsbury’s that are doubled. Bonus points won’t be doubled, nor will any points from Argos, Habitat, Sainsbury’s Bank (including travel money purchases), Sainsbury’s Energy or any other Sainsbury’s service. 7. By the 10th of each month, you’ll get a bonus point award equal to the total of your qualifying points during the previous month, up to a maximum of 20,000 points. 8. Sainsbury's Supermarkets Ltd award the points from this offer. No cash alternative is available.  9. We reserve the right to change or cancel this offer without notice.