It’s a life insurance plan that pays out a cash sum when you die. The plan will pay out the full sum assured if you die after the plan has been in force for 12 months. If you die within the first 12 months of the plan, the amount paid is equal to the premiums that have been paid. If you die as a result of an accident in the first 12 months, the full sum assured is paid. If you were to die as a result of an accident after the first 12 months, the amount paid is double the sum assured amount. Cover is available to UK residents aged between 50 and 80. See here for more information about Tesco Bank over 50s.
The accidental death lump sum won’t be paid out if you die from an accident if the cause of death is the result of one of the following: (i) Criminal Act – taking part in a criminal act (ii) Alcohol or Drug Abuse Including but not limited to the following: • Consuming too much alcohol • Taking an overdose of drugs, whether lawfully prescribed or otherwise. • Taking controlled Drugs (as defined by the Misuse of Drugs Act 1971) otherwise than in accordance with a lawful prescription. (iii) Flying Flying except as a passenger in a commercially licensed aircraft. (iv) Hazardous pursuits Engaging in motorsports (including motorcars, motorcycles and speedboats), mountaineering in which the use of ropes or guides is needed, potholing or diving using artificial breathing apparatus. (v) Self-inflicted injury Intentional self-inflicted injury (vi) War Including but not limited to War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion. A claim may not be paid if you don’t answer all questions truthfully, accurately and completely to the best of your knowledge when applying for cover.
There might be some situations a claim cannot be paid. These could include: • When the condition you’re claiming for isn’t covered in your policy. • The policy wasn’t in place when the event you’re claiming for took place. • The information you gave wasn’t honest, accurate or in full.
Under current tax rules, you aren’t liable to income tax or capital gains tax on your lump sum However, the amount paid out on your death, if not placed in a trust, will form part of your estate so may be subject to inheritance tax. Tax rules can change.