What is life insurance?
Learn more about life insurance - what it covers and how it works. And find out about the benefits of Tesco Life Insurance.
Published: 20 August 2025

Learn more about life insurance - what it covers and how it works. And find out about the benefits of Tesco Life Insurance.
Published: 20 August 2025
Life insurance is cover that pays out a cash lump sum if:
or
Its purpose is to give your family some financial support after you’re gone - by helping to pay off the mortgage or covering the cost of their living expenses.
If you haven’t looked at life insurance before, you can find out what some of the key terms mean in our life insurance glossary.
Tesco Life Insurance is what’s known as term life insurance, which means it covers you for the length - or term - of the policy. And you can choose how long you want cover for, whether it’s as little as 12 months or as long as 50 years. When deciding on the policy term, it’s a good idea to think about things like:
Bear in mind, Tesco Life Insurance doesn’t have a cash-in value. If your payments stop, so does your cover, and you won’t get your money back. The policy only pays out once, and it ends after that.
The amount you pay usually depends on a number of things, including the type of policy you go for, how much cover you want, and a few things your insurer needs to know about you. This includes:
When applying for life insurance, always answer the insurer’s questions accurately and honestly. If you don't, it could affect a claim that’s made on the policy - and the insurer may not pay out.
Life insurance is designed to give your family some financial support in case you’re not around to look after them. What’s covered by your policy, and what’s not, depends on your insurance provider, but the basic principles are the same.
You can learn more about life cover in our guide - What does life insurance cover?
To find out exactly what you’re covered for, it’s always best to check the policy documents.
Everyone has different financial needs, so Tesco Life Insurance comes with 2 types of cover to choose: Family Protection and Mortgage Protection.
With level cover, you choose the lump sum amount you want to leave to your loved ones and how long you want the cover for.
Decreasing cover can help to pay off a repayment mortgage, as long as your life cover and policy term match your outstanding balance and mortgage term.
If you make changes to your mortgage, like changing your fixed rate or re-mortgaging, it’s a good idea to check if your life insurance still meets your needs.
You can learn more about life insurance and mortgages in our guide - Do you need life insurance for a mortgage?
Generally speaking, yes, but you’ll need to make the right arrangements if you want to choose who the money goes to.
When you die, the lump sum payment will usually be paid to the person you have the policy with, as the surviving policyholder, unless you’ve made other arrangements. If you and your partner separate after taking out a joint life insurance policy, you might be able to split it into 2 single policies.
The cash lump sum will be paid to your estate. So, it’s important to make it clear who you want to leave the money to by choosing a beneficiary.
If you want to choose the person who gets the lump sum payout, you could think about placing your policy in a Trust. The potential benefits of doing this are:
You can also name the person you want the lump sum payment to go to in your will. But that might not be as tax efficient as placing your life insurance policy into Trust.
It’s a good idea to get independent legal and financial advice if you’re thinking about placing a life insurance policy into Trust or if you need to make a will.
Whether you need life insurance depends on your personal circumstances. If you have family who depend on you for money, like a partner or children, life insurance could help to give them some financial support if you’re no longer around to provide for them.
Payouts from life insurance can be used to help pay off mortgages, cover the costs of raising children and to pay monthly bills. So, if you don’t have any provisions in place for your family in case you die, it might be worth thinking about life insurance.
At Tesco Insurance, we want to help you with the things that matter most. That’s why Tesco Life Insurance comes with a Big Win and lots of Little Helps.
As well as your Tesco benefits, you’ll also get Aviva DigiCare+ - a health and wellbeing service from Aviva that includes free annual health checks and the Bupa Anytime HealthLine.
Tesco Life Insurance is provided and administered by Aviva, who have a 5-star rating for life insurance and pay out on 98.8% of claims.
Tesco Life Insurance is arranged, administered and underwritten by Aviva Life & Pensions UK Limited.
Tesco Personal Finance Ltd acts as an introducer to Aviva Life & Pensions UK Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of the Association of British Insurers. Firm Reference Number 185896.
Aviva Life & Pensions UK Limited. Registered in England & Wales No. 3253947. Registered Office: Aviva, Wellington Row, York, YO90 1WR. Tesco Personal Finance Ltd and Aviva Life & Pensions UK Limited. are not part of the same corporate group.
Tesco Insurance is a trading name of Tesco Personal Finance Ltd, Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ (registered in Scotland, no SC173199) which is authorised and regulated by the Financial Conduct Authority (register no. 186022).
With the Aviva DigiCare+ app, you can start using a range of health and wellbeing services, at no extra cost, when you take out your policy.
Members of your family can use it too, as long as they're eligible.
The Aviva DigiCare+ app is provided by Square Health. The services are provided by Square Health and other selected partners.
You'll find full details about the services in the app, along with the terms and conditions, residency restrictions and privacy policy.
Aviva DigiCare+ is a non-contractual benefit that could be changed or withdrawn by Aviva at any time. So, it won't appear in any contract you've signed, or in any terms and conditions.
Please check the policy documents to make sure the cover you’ve chosen meets your needs.
The policy booklet and product information documents tell you about the benefits, limitations and exclusions that’ll apply to your cover.
Terms and conditions
Terms and conditions
Tesco Life Insurance is provided, administered and underwritten by Aviva Life & Pensions UK Limited.
Aviva have a 5-star rating for life insurance from Defaqto. And they pay out on 98.8% of life insurance claims*.
*Aviva UK individual claims report 2025, based on claims paid in 2024.
Find the right cover to give financial support to your family after you’ve gone. Tesco Life Insurance comes with Clubcard Prices, some great Tesco shopping benefits and Aviva DigiCare+.