Tesco Banks scraps life insurance – no more great Clubcard deals!

Over the years Tesco Bank has had some good bonus Clubcard points offers with various insurance policies.

The life insurance offer used to be a very generous one.  Long-term Clubcard collectors will remember that the sign-up bonus was 4,500 Clubcard points, and that you would receive the points straight after your first monthly payment was taken.

As you could have cancelled after the first month and the minimum payment was £5, you received £135 – £180 of Clubcard Boost deals for just £5!

Even better, Tesco Bank was at one point happy for you to open multiple policies if you told them that each would pay into a different family trust in the event of your death …..

Tesco Bank

In 2015 things changed with the sign up bonus going up to 5,000 Clubcard points.  In order to get the points, however, you had to keep the policy for 12 months.  This meant you would spend £60 on life insurance (which of course your family would have benefitted from if you died) to receive £135 – £180 worth of Clubcard points.

All in all this was still a good deal.

Now, Tesco Bank is winding down its life insurance product.

As you can see on this website Tesco Bank is no longer accepting new applications for their life insurance.

There is no explanation as in why Tesco Bank is doing this but it is presumably not proving profitable.  If you already have a policy nothing will change and you have nothing to worry about.

PS.  If you want to know what sort of trouble people got into when buying Tesco Bank insurance purely for the points, there was an excellent Mumsnet thread last year which has sadly been removed.

It started:

“Looking for a missing pair of trousers in DH’s [Dear Husbands] wardrobe this morning, I came across a policy doc and “thank you for buying tesco pet insurance” letter.  Says it’s for “Smiles”, doesn’t specify the type of animal, dated January this year, £80ish for the year.

We do not have a pet.

I will, of course, ask him when he gets home, but any ideas WTF might be going on v welcome…”

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Comments

  1. Ac onding to what I’ve heard lately it may not just be insurance that’s gettinb wound up.

    • As long as it’s not Clubcard!

      • No, I heard the bank is being prepared for a sale but it might only be workplace gossip.

        • depends how bad things are for them, with cutting many point avenues lately i would have to guess things aint going to well for them tho

          i know they looked in to selling the bank arm off back in nov 2014 due to falling profits