Tesco added the over 50s to its life insurance portfolio earlier this month as it announced a new policy specifically designed for customers aged between 50 and 75.
The policy will allow customers to leave their loved ones a guaranteed cash sum, and they are guaranteed to be accepted without the intrusion of a medical examination.
According to Tesco, over 50 life insurance
is becoming increasingly important as life expectancy rises.
Jeremy Sutton, head of Tesco Life Insurance
, said: "Increasingly, people are living longer than in previous generations. Customers have been telling us that they want a product that meets their needs for leaving something for their loved ones."
However, ASDA Financial Services, which also offers life insurance for the over 50s has hit out at Tesco's, accusing its new life insurance
policy of being unfair. Head of insurance at ASDA, Gideon Ingham, said: "Tesco's offer is another addition to all the other over 50s life cover products that are unfair as consumers could have to pay in far more than their cover will pay out.
"We cannot understand why another new product to market hasn't got a cap on it. This launch looks like every little premium helps Tesco and we are asking them to review its offering and introduce a cap."
ASDA's life insurance for over 50s is unique in the way that the customer only pays premiums until their chosen assured sum is reached. After that the premiums stop but the cover continues for the rest of their lives.
Mr Ingham continued: "For too long, thousands of over 50s Life Cover policy holders have been penalised for living longer by having to pay much more in premiums than is paid out. ASDA has a long standing reputation as a consumer champion and will go that extra mile to identify policies which do not unfairly penalise customers."
"Our new cover is going to ruffle a few feathers, but it's high time that this customer group was treated fairly – so we think that all over 50s life policies should put a cap on premiums." He concluded.