Asda's new guaranteed life assurance policy is poor value and customers could be paying too high a price for cover that is supposed to give them peace of mind, says new financial comparison website payingtoomuch.com.
Michael Ward of payingtoomuch.com says: "It is likely that more than 3 out of 4 customers would be able to get over double the amount of cover Asda is trying to persuade them to take out for the same price. This does not sound like saving you money everyday to us. Not only is the Asda policy nearly double the standard rate, it will not pay out if you die from a heart condition, cancer, stroke or terminal illness if it can prove you knew you had the condition when the policy was taken out. Asda's policy is not underwritten. This means customers do not have to answer lots of health questions before they are given cover, but this comes at a price. Most people who are either healthy or have existing health problems, such as high blood pressure that could invalidate a claim, would be better off in terms of cost and cover with an underwritten product. It might take a bit longer to get the cover because of the need to answer health questions, but in the long-run it is not only likely to be cheaper, it will be easier to claim if you need to.”
Asda has also chosen 65 as the age when the policy stops, which is before many of their customers will receive a basic state pension now the retirement age has been raised, according to payingtomuch.com, “You may be able to get substantially more cover by applying for an underwritten product."
Launched in July 2011, payingtoomuch.com is a brand new price comparison website for insurance.