How to compare life insurance

How to choose life insurance

There are a range of life insurance policies to suit your needs, budget and life stage – whether you’re a newly-wed, setting up your first home or nearing retirement. All policies have different advantages and disadvantages. Take a look at the tables below to compare life insurance.

Life insurance pros and cons

Use our pros and cons tables below to help you make an informed decision about which life insurance option could be best for you and your loved ones.

The following life insurance plans or add-ons are ones that Sainsbury’s Bank offer.

Decreasing life insurance pros and cons

Decreasing life insurance is designed for people with a repayment mortgage. With this policy, the potential cash sum reduces over time at a set rate – roughly in line with how a repayment mortgage decreases. It could help your family to pay off the remaining mortgage balance if you pass away during the policy term.


Pros	Cons
This policy generally costs less than a level life insurance policy overall, due to the reducing sum assured.	With this policy, the potential payout will reduce over time. So, if your needs change, the policy may no longer provide enough cover.
You can tailor your policy to your needs with add-ons like critical illness cover.	If your mortgage interest rate changes, your policy may not fully cover the outstanding mortgage as your policy is not directly linked with the mortgage.
Premiums stay the same so you can plan monthly expenses (unless changes are made to the policy).	The payout could be subject to inheritance tax, unless you decide to place your policy in Trust. In this case, your policy value would usually not be considered part of your estate.
Your family can use the cash payout sum for a variety of things, typically to protect a repayment mortgage.	The policy doesn’t have a cash value, unless a valid claim is made.
	Inflation will decrease buying power of cash sum (unless an increasing plan is chosen).

Level life insurance pros and cons

With level life insurance, the payout remains the same throughout the policy term. This type of cover is designed for individuals and couples who need a policy with a payout that can be used to help your family cover anything from the mortgage and living expenses to childcare costs.


Pros	Cons
The cover amount stays the same during the policy, so you can rest assured knowing the amount your loved ones will receive if you die during the policy term.	As the cover amount stays the same, rather than reducing over time, it may cost more than a decreasing life insurance policy.
Your family can use the cash payout sum for a variety of things, like mortgage and rent payments, bills and living expenses, and funeral costs.	The potential payout won’t increase in line with inflation.
You can tailor your policy to your needs with add-ons like critical illness cover.	The payout could be subject to inheritance tax, unless you decide to place your policy in Trust.
Premiums stay the same so you can plan monthly expenses (unless changes are made to the policy).	The policy doesn’t have a cash value, unless a valid claim is made.

Over 50s life insurance pros and cons

Over 50s life insurance is a form of ‘whole of life’ cover. This means that it’s designed to give you cover for the rest of your life. This insurance is intended for individuals aged between 50 and 80, who want to help their family cover funeral costs or leave them a small gift.


Pros	Cons
If you meet the age criteria you’re guaranteed to be accepted – there is no need for a medical or for underwriting.	Depending on how long you live, the premiums you pay may be higher than the cash payout.
Your premiums can be fixed, so you can plan around your monthly expenses.	The policy doesn’t have a cash value, unless a valid claim is made.
With Sainsbury’s Bank, most valid claims are paid out in one day.	The payout could be subject to inheritance tax, unless you decide to place your policy in Trust.
Choose whether your premium and cover amount increases annually in line with inflation (increasing) or remains fixed throughout your policy duration.	Inflation will reduce the buying power of the cash sum (unless an increasing plan is chosen).
Your family can use the cash payout towards things like funeral expenses.	The policy is not guaranteed to cover the full cost of a funeral.
	Full cover is payable after one year.
	The maximum cash sum is £10,000.

Critical illness cover pros and cons

Critical illness cover can be a standalone policy or an optional add-on to level life insurance or decreasing life insurance. At Sainsbury’s Bank we offer critical illness cover as an add-on to our life insurance policies. It’s designed to pay out if the policy holder is diagnosed with an eligible critical illness during the policy term, and survives 14 days after diagnosis.


Pros	Cons
A payout could help you to adjust after a life changing medical diagnosis from a qualifying condition.	Will be an extra cost to your policy.
Policies cover an array of critical illness, from heart attacks to strokes and certain cancers.	Cover only applies to specified illnesses.
If you choose to add critical illness cover, children’s critical illness cover is automatically included.	Terms and conditions apply. The insured person must live for a certain number of days after the diagnosis to be eligible for a payout.
Premiums stay the same so you can plan monthly expenses (unless changes are made to the policy).	The payout could be subject to inheritance tax.
	The policy doesn’t have a cash value, unless a valid claim is made.
	Inflation will also affect the buying power of cash sum.

Single life vs joint life insurance

When you take out level life insurance or decreasing life insurance cover with Sainsbury’s Bank, you can choose to set this up as a single life or a joint life policy. A single life policy covers just one person, and joint life covers two people – regardless of if you’re married or not.

Some couples choose to have two single life policies, to ensure the remaining spouse has cover after the death of the first person. Joint life insurance covers two people, and it only pays out once – either on a first or second death basis.


Single life	Joint life
Only covers one person.	Covers two people.
Couples can take out two separate policies.	The policy only pays out once.
Both policies would pay out in the case of a valid claim. So that would mean two separate payouts for beneficiaries.	Depending on your policy type, the single payout will come after either the first person dies or the second person dies.
	May be less expensive, but only pays out once.

Why choose life insurance with Sainsbury’s Bank?

While nothing can make losing you any easier on your family, a financial helping hand may go a long way in easing any money worries associated with your passing. Get peace of mind knowing your family will be in good hands when it’s time to say goodbye.

With Sainsbury’s Bank Life Insurance, you can expect:

Protection by L&G
Cover from as little as £5 a month - depending on age
Access to confidential and impartial advice from Care Concierge and support from L&G Wellbeing Support Services

Life insurance calculator

If you’re not sure how much life insurance cover you need whilst doing your life insurance comparisons, our life insurance calculator tool can help. Knowing how much would help your family to cover bills, funeral costs and more after you pass is no mean feat.

Use our life insurance calculator to help you compare life insurance policies.

Before you apply

It’s important to understand that life insurance isn’t a savings or investment product – it has no cash value unless a valid claim is made. It's your responsibility to make sure your policy is right for you. If you need any advice, then you should get in touch with a financial advisor.

Need more information about life insurance?

Life insurance for families

Discover how life insurance may be able to protect your nearest and dearest when you pass away.

Self-employed life insurance

Learn about life insurance if you’re self-employed and how it could benefit your family.

What is life insurance and how does it work?

Gain a deeper understanding of what life insurance is, and why you might decide to take out cover.

Legal & General Assurance Society Limited Registered in England and Wales No. 00166055. Registered office: One Coleman Street, London, EC2R 5AA. Legal & General Assurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.