Life Insurance
Your Policy
Conditions
Inside you’ll find full details about Tesco Life Insurance.
Provided by
Friends Life
Key features of
Tesco Bank
Life and Critical
Illness Insurance
Key features of
Tesco Bank Life and Critical Illness Insurance
Tesco Bank Life and Critical Illness Insurance is provided by Aviva Life & Pensions UK Limited. Any references to ‘we’, ‘us’ or ‘our’
refer to Aviva unless stated otherwise.
You can use this policy to cover up to two people – usually yourself and your partner, spouse or civil partner.
Once you’ve taken out your policy, we will send you a policy schedule which shows what is included and who is covered.
Choice of cover
You can choose from two types of Tesco Bank Life and Critical Illness Insurance:
Level cover – This cover is often used to help pay off an interest only mortgage. It can also be used to help protect your family.
The cash lump sum we’ll pay stays the same throughout your policy term.
Mortgage decreasing cover – This cover is used to help pay off a repayment mortgage.
The cash lump sum we’ll pay decreases each month broadly in line with the amount outstanding on a capital and interest mortgage.
It reduces by a fixed monthly interest rate.
The cash lump sum can be used to help protect your family and/or your mortgage:
● If you want to protect your family, the cash lump sum we pay can be used to help your loved ones maintain their lifestyle.
● Alternatively, if you make a claim on diagnosis of a critical illness, the cash lump sum could be used to help ease money worries and allow you to concentrate on looking after yourself and enjoying time with your loved ones.
● If you want to protect your mortgage, the cash lump sum can be used to help pay off some, or all, of your outstanding mortgage. If this is how you want to use your policy, please make sure you read the extra information in the mortgage cover section later in the document.
Key features
The Financial Conduct Authority is a financial services regulator. It requires us, Aviva, to give you this important information to help you to decide whether our Tesco Bank Life and Critical Illness Insurance is right for you.
You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.
Its aims
● To pay out a cash lump sum if you die before your policy ends; or
● To pay out a cash lump sum if you’re diagnosed with a terminal illness before the last 12 months of your policy, and you’re not expected to live more than 12 months; or
● To pay out a cash lump sum if you are diagnosed with one of the critical illnesses we cover before your policy ends.
Your commitment
● To answer the questions on your application correctly to the best of your knowledge.
● To pay us your regular premiums for a set number of years, or until you die or are diagnosed with a terminal illness or critical illness, if earlier.
● To tell us if any of the information you give us changes in the time between you completing your application and when we confirm that your cover will start.
Risks
● If you don’t pay your premiums, your policy and your cover will end 30 days after your last premium was due.
● If your policy ends because you haven’t paid your premiums, you won’t get any money back.
● If you don’t give us all the information we’ve asked for, or if you give us incorrect information on your application, we may not be able to pay out when you make a claim and your cover may be cancelled or amended.
● If you decide to end your policy, you won’t get any money back as the policy has no cash-in value.
● Inflation will reduce what the cash lump sum can buy in the future. You should review your cover to ensure that it remains adequate over time.
Questions and answers
What is Tesco Bank Life and Critical Illness
Insurance?
It’s an insurance policy that provides you with life and critical illness cover.
Life and critical illness cover – pays out a cash lump sum if you either die or are diagnosed with a critical illness that meets our policy definition and then survive for at least 14 days. We only cover the critical illnesses we define in our policy, and no others.
Alternatively, we could pay out a cash lump sum if you’re diagnosed with a terminal illness before the last 12 months of your policy, and you’re not expected to live more than 12 months.
We’ll also include:
Additional critical illness benefit
● This means you are also covered for a limited benefit if you are diagnosed with one of the specified additional critical illnesses we define in our policy.
Children’s critical illness benefit
● This means your children are covered for a limited benefit if they are diagnosed with one of the specified critical illnesses or additional critical illnesses we define in our policy.
Who can take out the policy?
● When you start your policy you must be aged between 18 and 59 and a UK resident, this excludes the Channel Islands and the Isle of Man.
● The policy can last between five and 40 years, but it has to stop before you reach age 76
● The maximum amount of cover you can have is £2,000,000.
This includes other policies with Aviva which include critical illness cover.
What’s included?
● We include life cover for you, and any other person insured on the policy.
● We include terminal illness benefit for you, and any other person insured on the policy.
● In addition, you and any other person insured on the policy are also covered for a list of specified critical illnesses defined in our policy terms and conditions.
● We’ll automatically include children’s critical illness benefit and additional critical illness benefit.
Protection Promise (Underwriting Cover)
We also include up to 90 days’ free life cover from the date we receive your application to when we make a decision:
● We’ll cover you for up to £1,000,000, across all Aviva applications, or the amount of life insurance you’ve asked for on your application, whichever is lower. This means that where two people have applied for life insurance, each life insured is covered for the lower of £1,000,000, or the amount being applied for.
● Your underwriting cover ends on the earliest of:
– 90 days from the date we received your application, or – 10 days after we confirm our decision to accept you, or – the day we postpone or decline your application.
● Underwriting cover is intended to provide security and protection against the unexpected. This means it doesn’t provide cover if your death results from a suicide or any medical condition that you had when you applied for your policy. In addition it does not cover any critical illness.
● Your underwriting cover and policy will be invalid if you have not provided us with complete and accurate information on your application. It’s also really important to keep us informed of any changes in your health or medical history prior to your application being accepted or Aviva providing you with our decision or starting cover.
What critical illnesses are covered?
The complete list of conditions we cover is set out below. These headings are only a guide to what is covered. The full definitions of the illnesses covered and the circumstances in which you can claim are given in the policy terms and conditions. These typically use medical terms to describe the illnesses but in some cases the cover may be limited. For example:
– Some types of cancer are not covered.
– To make a claim for some illnesses, you need to have permanent symptoms.
It’s important to familiarise yourself with the full definitions so that you understand them. These are included in appendix A and B in the policy terms and conditions.
Critical illnesses at a glance
Alzheimer’s disease or pre-senile dementia before age 65 – resulting in permanent symptoms
Aorta graft surgery – for disease or trauma
Aplastic anaemia Bacterial meningitis
Benign brain tumour – resulting in permanent symptoms or requiring invasive surgery Benign spinal cord tumour
Blindness – permanent and irreversible
Cancer – excluding less advanced cases
Cardiomyopathy – of specified severity
Coma – with associated permanent symptoms
Coronary artery by-pass grafts Creutzfeldt-Jakob disease
Deafness – permanent and irreversible
Encephalitis
Heart attack – of specified severity
Heart valve replacement or repair
HIV infection – caught in the European Union, Andorra, The Channel
Islands, The Faroe Islands, Gibraltar, The Isle of Man, Liechtenstein, Norway, Monaco, San Marino, Switzerland, Vatican City, USA, Canada, Australia or New Zealand from a blood transfusion, a physical assault or at work
Intensive care – requiring mechanical ventilation for 30 consecutive days
Kidney failure – requiring permanent dialysis
Liver failure
Loss of hand or foot – permanent physical severance
Loss of independent existence
Loss of speech – total, permanent and irreversible
Major organ transplant – from another donor
Motor neurone disease – resulting in permanent symptoms
Multiple sclerosis – with persisting symptoms
Multiple system atrophy
Paralysis of a limb – total and irreversible
Parkinson’s disease before age 65 – resulting in permanent symptoms
Pneumonectomy – removal of a complete lung
Primary pulmonary hypertension – of specified severity Progressive supranuclear palsy
Pulmonary artery surgery
Rheumatoid arthritis – of specified severity
Severe lung disease – of specified severity
Stroke – resulting in permanent symptoms
Structural heart surgery
Systemic lupus erythematosus – of specified severity
Third degree burns – covering at least 20% of the body’s surface area or covering at least 20% of the surface area of the face or head Total permanent disability before age 65 A full definition of Total permanent disability can be found in
appendix A of the Policy Terms and Conditions.
Additional critical illnesses covered Carcinoma in situ of the
breast – requiring surgery to remove the tumour
Crohn’s disease – treated with intestinal resection
Low grade prostate
cancer – with specified treatment Removal of an eyeball
Significant visual impairment
What else is included?
Additional critical illness benefit
Carcinoma in situ of the breast, Crohn’s disease, low grade prostate cancer, removal of an eyeball and significant visual impairment are included as extra cover to the main benefits.
We’ll pay out £20,000 or 20% of the life insurance amount, whichever is lower, where you are diagnosed with a specified additional critical illness that we cover, and survive for at least 14 days after meeting the relevant definition.
Only one claim can be made for each of these additional critical illnesses by a life insured. Claims paid will not affect the amount that can be later claimed under the critical illness benefit.
Children’s critical illness benefit
Your children (natural, step or legally adopted) as well as any future children aged between 30 days and their 18th birthday or 21st birthday if in full time education, at the time of diagnosis are also covered if they suffer a critical illness or additional critical illness covered by your policy. We cover children for the same illnesses listed apart from total permanent disability.
We’ll pay out £25,000 or 50% of the life insurance amount, whichever is lower, where your child is diagnosed with a specified critical illness that we cover, and survives for at least 14 days after meeting the relevant definition.
We can only pay out once for each child but your policy will continue after we’ve made a payment so that your cover, and the cover for any other child, carries on.
Other benefits that can be included:
If we accept your policy on our standard terms, it will automatically include a range of other features.
Life change benefit
If your circumstances change, our life change benefit lets you take out more cover without giving us any extra underwriting information.
You can increase your sum insured by up to 100%. The maximum additional amount you can take out is £200,000 or the original sum insured, whichever is lower.
You can use the life change benefit whenever your circumstances change before you reach age 55, or the additional cover you have reaches the maximum sum insured, outlined above.
You can use this benefit for the following life changes:
● Getting married or entering into a civil partnership
● Divorce, dissolution of civil partnership or separation
● Buying your first home
● Moving house
● Improving your home
● Buying a second home
● Having or adopting a child
● Your child/children starting higher education
● Salary increase of 20% or more.
The new policy we set up with the additional cover for life change benefit:
● Can be on a level or decreasing cover basis
● Can be on one or both lives, if the original policy is held jointly
● If the original policy is on a single life basis, this must be for the same life insured
● Does not have to be the same term as the original policy
● Must end before your 70th birthday
● Will be a life insurance policy or life insurance and critical illness insurance policy
● Will include separation benefit, if held jointly with another person
● Won’t include the life change benefit or the replacement benefit
● Can’t be taken out if you’re making a claim or are eligible to make a claim for terminal illness benefit, critical illness benefit, additional critical illness benefit, or death benefit.
If you want to use our life change benefit, you will need to do this within 90 days of your life change event and we’ll need evidence of what’s changed. For example, in the case of having a child, we’ll need to see a birth certificate.
The new policy(s) will be subject to the premium rates in force at the time of the application for your age, and policy terms and conditions applicable when you take out the new policy(s).
Replacement benefit
If you’ve got a joint policy, the policy will end when one of you dies or you claim on diagnosis of a critical illness or terminal illness, and we pay out. However, by using the replacement benefit, the remaining policyholder can take out a new single policy without any further underwriting.
You can only use this benefit before you reach age 55 and within 90 days of the claim being accepted.
The new policy:
● Can cover you for your original sum insured or up to £50,000, whichever is lower
● Can be on a level or decreasing basis
● Can’t end later than the original policy but can end earlier
● Won’t include the life change, replacement or separation benefit
● Won’t include critical illness.
● Can’t be taken out if the remaining life insured is claiming or is eligible to claim for terminal illness benefit, critical illness benefit, or additional critical illness benefit.
The new policy will be subject to the premium rates in force at the time of the application for your age, and policy terms and conditions applicable when you take out the new policy.
Separation benefit
If you’ve got a joint policy, you can use our separation benefit to divide it into two single policies if you separate.
For example, if you took out the joint policy to cover your mortgage, you can split it into two policies to cover new mortgages.
You can only use this benefit before you reach age 55 and within 90 days of your separation.
The new policies:
– Can be on a level or decreasing cover basis – Can include critical illness cover.
– Can cover each of you for up to the same amount as the original policy
– Do not have to be the same term as the original policy – Must end before your 70th birthday
– Won’t include the life change benefit
– Can’t be taken out if you’re making a claim or are eligible to make a claim for terminal illness benefit, critical illness benefit, additional critical illness benefit or death benefit.
If you want to use the separation benefit, you’ll need to give us evidence of the separation and/or the changes to your mortgage.
The new policies will be subject to the premium rates in force at the time of the application for your age, and policy terms and conditions applicable when you take out the new policies.
Can I make changes to my policy?
Your policy offers some flexibility, so this means that you can change:
● how long you want your cover to last
● the amount, and type, of cover you’ve got
Depending on the type of change you make, we may change or replace your original policy, or you may have to take out a new policy. We may also need you to give us some medical information.
You should review your cover to ensure that it remains adequate over time.
3 When will the policy pay out?
● If you die before the policy ends, or
● If you’ve got 12 months or more left on your policy and you’re diagnosed with a terminal illness; with less than 12 months to live; or
● If you’re diagnosed with a critical illness that meets our policy definition before the policy ends and survive for at least 14 days; or
● If you’re diagnosed with an additional critical illness that meets our policy definition before the policy ends and survive for at least 14 days: or
● If a child is diagnosed with a critical illness or additional critical illness that meets our policy definition and survives for at least 14 days.
We will only pay out the main benefit once, so if you make a claim for death, terminal illness or critical illness, your policy will end. If a claim is paid for children’s critical illness or additional critical illness your policy will continue.
7 When will the policy not pay out?
● We won’t pay out if:
– You don’t provide the requested documents or evidence to support your claim.
– You haven’t paid your premiums.
– You gave us incorrect or incomplete information on your application, if this affects the cover we provide.
– You die outside of the policy term.
● We won’t pay a critical illness or additional critical illness claim if:
● The claim is for a critical illness or additional critical illness which we don’t cover.
● The claim is for one of the critical illnesses or additional critical illnesses listed below and results from criminal acts or self-inflicted injury:
– Blindness – Coma – Deafness
– Loss of hand or foot
– Loss of independent existence – Loss of speech
– Paralysis of a limb – Removal of an eyeball – Third degree burns – Traumatic brain injury
– Total permanent disability before age 65.
● You are diagnosed with a critical illness or additional critical illness outside of the policy term.
● You, or in the case of children’s critical illness, the child, dies within 14 days of being diagnosed with a critical illness or additional critical illness.
● In the case of additional critical illness, the policy has ended due to a successful claim for the life insured for death, terminal illness or critical illness
In addition, we won’t pay a child’s critical illness claim if:
● The child’s critical illness or additional critical illness was present at birth, whether diagnosed or not.
● The child had symptoms of the critical illness or additional critical illness before they were covered by the policy.
● The policy has ended due to a successful claim for the life insured for death, terminal illness or critical illness
● We won’t pay a terminal illness claim if:
You’re diagnosed with a terminal illness in the last 12 months of your policy and/or you’re expected to live for more than a year.
What will my premiums be?
● Your illustration gives you an idea of how much you’ll need to pay for the amount of life and critical illness cover you’ve chosen. This amount may change when we’ve made our final decision on your application.
● Your premiums are based on the cover you choose and your personal circumstances.
● You pay your premiums monthly by Direct Debit.
Guaranteed premiums
Your premiums are guaranteed to stay the same throughout your policy term.
What about tax?
● The cash lump sum we pay out on death, terminal illness and critical illness (including additional critical illness and children’s critical illness) is currently free from income and capital gains tax.
● It may be subject to inheritance tax unless you put your policy in a suitable trust. For details of our trusts, please call 0800 302 9604 for our explanatory brochure.
● Tax rules may change in the future.
Can I change my mind?
● You can change your mind within 30 days from the later of:
– The day we confirm when your cover will start – The day you receive your policy schedule.
● If you decide you don’t want the policy, we’ll give you your money back, if you change your mind within 30 days.
● You’ll be sent a cancellation notice which will include a phone number that you can call and an address you can send it to if you change your mind about your policy. Alternatively, you can contact us at the Aviva address given overleaf.
● Your policy will continue if we don’t receive your cancellation notice within 30 days.
● If you cancel your policy after 30 days you won’t get any premiums back.
Mortgage cover
If you’re using your policy to cover your mortgage and you have taken decreasing cover, it will automatically include:
Repayment Guarantee
We guarantee that the cash sum we pay will pay off the outstanding mortgage amount covered by the policy when you die or make a claim on diagnosis of a terminal illness, or critical illness, if all of the following apply:
● The yearly mortgage interest rate at the time the policy is taken out is under 10%.
● The difference between the life cover amount and the outstanding mortgage is due solely to a higher rate of interest being charged on the mortgage than the interest rate used in our calculations.
● The amount of cover at the start of the policy is at least the size of the mortgage (or the part of the mortgage the policy covers).
● This policy does not end before your mortgage.
This is called the Repayment Guarantee.
Protection Promise (house purchase cover)
● We’ll automatically give you free life insurance cover between when you exchange contracts and when your house purchase is completed. (In Scotland we will provide the free cover from when missives are completed for the property until the date of entry.)
● Your cover will begin once you’ve been accepted and have given us a start date (the date of completion), provided that you have exchanged contracts.
● On completion of the purchase, your house purchase cover will end and your policy should start (or in Scotland, the date of entry).
● house purchase cover ends on the earlier of:
– 90 days from the date it started – Completion
– The start date of the policy.
● We’ll cover you for up to £1,000,000, the amount of life insurance you’ve asked for on your application or the purchase price of the house as confirmed when contracts are exchanged, whichever is lower.
How to contact us
To speak to someone about your policy
If you want to get in touch with us you can call, email or write:
Call us 0800 302 9604
(Monday to Friday, 8:00 am – 8.00 pm and Saturday 9.00 am – 2.00 pm)
Outside of these hours, you can use the same number and leave us a message.
We monitor calls to improve our service.
Email us at tesco@aviva.co.uk Write to us at:
Customer Services PO Box 520 Norwich NR1 3WG
To make a claim
Call our Life Claims Department on 0800 015 1142.
Alternatively, we can be contacted on 01904 723 520. Outside of the UK, the number would be +44 1904 723 520.
To make a complaint
If you ever need to complain you can:
Call us on 0800 158 2575 Email us at tesco@aviva.co.uk Write to us at:
Aviva Customer Relations PO Box 3182
Norwich NR1 3XE
If you’re not satisfied with the response from Tesco Bank or Aviva, you may be able to take your complaint to the Financial Ombudsman Service.
The Financial Ombudsman Service can look at most complaints and is free to use. You do not have to accept their decision and will still have the right to take legal action. Their contact details are:
The Financial Ombudsman Service Exchange Tower
London E14 9SR
Call 0800 0234 567 or 0300 123 9 123
Email to: complaint.info@financial-ombudsman.org.uk Website: www.financial-ombudsman.org.uk
Other important information
Terms and conditions
This key features document only gives a summary of Tesco Bank Life and Critical Illness Insurance. You should also read the policy terms and conditions. Please contact us for a copy.
This key features document complies with the Association of British Insurers (ABI) Statement of Best Practice for critical illness cover. It is a guide to Tesco Bank Life and Critical Illness Insurance and is based on our understanding of current laws and tax rules.
Further details are given in the policy schedule and policy terms and conditions. If you’d like a copy of the ‘ABI Guide to Critical Illness cover’ which provides general information about critical illness cover, please write to The Association of British Insurers, 51 Gresham Street, London EC2V 7HQ.
Law
The law of England will apply in legal disputes and your contract will be written in English. We’ll always write and speak to you in English. We’re regulated by the Financial Conduct Authority:
The Financial Conduct Authority 25 The North Colonnade Canary Wharf
London E14 5HS
We’re also regulated by the Prudential Regulation Authority:
The Prudential Regulation Authority 20 Moorgate
London EC2R 6DA
Potential conflicts of interest
There may be times when Aviva plc group companies or our appointed officers have some form of interest in the business being transacted.
If this happens or we become aware that our interests, or those of our officers, conflict with your interests, we’ll take all reasonable steps to manage that conflict of interest. We’ll do this in a way that treats all customers fairly and in line with proper standards of business.
Client classification
The Financial Conduct Authority has defined three categories of customer. You’ve been treated as a retail client, which means that you’ll get the highest level of protection provided by the Financial Conduct Authority rules and guidance.
Compensation
Financial Services Compensation Scheme (FSCS)
We are covered by the FSCS. If we cannot meet our obligations you may be entitled to compensation under the scheme.
You can get more details directly from the FSCS online at www.fscs.org.uk or by contacting them at:
Financial Services Compensation Scheme 10th Floor, Beaufort House
15 St Botolph Street London
EC3A 7QU
Tel: 0800 678 1100 or 0207 741 4100 Fax: 0207 741 4101
Tesco Bank Life and Critical Illness Insurance is provided by
Aviva Life & Pensions UK Limited. Registered in England No. 3253947. 2 Rougier Street, York, YO90 1UU.
