7 March, 2016
Tesco Bank Launches Free Life Insurance for Expectant Parents
Expectant parents can now benefit from one year’s free life insurance for the very first time. To help protect their growing families, members of Tesco Loves Baby Club can apply for Tesco Bank Enhanced Free Parent Life Cover at no cost, as soon as they find out about their pregnancy. This free life cover is the first of its kind in the UK with the option to start during pregnancy, and runs for a year from the date that parents first apply.
Tim MacIvor, Head of Customer at Tesco Bank Insurance, said; “A child’s first year is both a joyful and expensive time when many parents will be starting to think about planning their new family’s financial future. We know that only around half* of all parents with young children have life cover. We want to help parents in any way we can. That is why eligible Tesco Loves Baby Club members can now benefit from a year’s free life insurance, providing them with a little helping hand at a time when their finances are most likely to be stretched.”
The first year of parenthood brings with it many challenges, such as a reduced family income while parents are on maternity or paternity leave, and the additional cost challenges of paying for all the equipment, clothing and essentials that a baby needs. To help new parents deal with this, Tesco Loves Baby has teamed up with Ricky Willis, author of the Skint Dad blog to put together some essential financial planning tips to help ease parents through the first few months.
Ricky’s top tips for new parents
1. Start planning the minute you find out about the pregnancy. It’s amazing how quickly 9 months pass, but if you or your partner plans to take parental leave, it’s important to plan how to make the period of reduced income work effectively for you.
2. Talk to your partner. We all know honesty is the best policy, but when it comes to financial planning for a new baby it really is! For example, think about how you would cope if you partner wasn’t here or couldn’t work anymore, would you have the financial resources in place to manage this? If not, there are insurance products out there that can provide some financial support, for example life insurance and critical illness. The free life insurance available through Tesco Loves Baby Club could be a great way to start this conversation.
3. Create a budget and stick to it. Once you’ve decided how much time you or your partner is going to take as parental leave, figure out what effect that will have on your monthly income. If one of you is going to have a reduced income you need to work as a team, and that means knowing what your budget is and what you can and can’t afford to do. Once you’ve done that, you can make a realistic household budget and decide what if anything needs to change when it comes to your regular spending and monthly outgoings.
4. Shop around. In the first year of a baby’s life they go through on average 2,500 nappies. With the cost of a nappy ranging anywhere from 10p up to 36p each, you can see that over time the amount you are spending really starts to add up!
5. Cook from scratch. Packaged baby food can be expensive, but it’s quick and easy to make things yourself from scratch. It’s the same for the rest of your family; a home cooked meal generally works out cheaper than pre-prepared.
6. No spending days. Challenge yourself to two ‘no spending’ days a week. There are hundreds of things you can do with small children that don’t cost a penny, and it’s so easy to fall into the trap of over-spending on children’s activities. Additionally, when it comes to spending, ask yourself; “did I need this item yesterday?” and, “will I really need this item tomorrow?” Nine times out of ten the answer is no, and if that’s the case, don’t make the purchase.
7. Start saving. There is no better feeling than having a few pounds saved for a rainy day, so if you don’t have any savings, it’s time to start somewhere! Even if it’s only a few pounds a week, it really adds up over time and is worth committing to.
8. Join Tesco Loves Baby. This is a club for new and expectant parents, which offers great money saving tips and deals, and a good support network to get your through these vital early years.
For more information on the enhanced free parent life cover available visit the Tesco Loves Baby Club website; http://www.tesco.com/babyclub
For more information and media enquiries, please contact:
Sarah Wright (Tesco Bank)
+44 (0)131 479 1626 / +44 (0)7808 760478
Notes to editors:
* Research undertaken by eDigital on behalf of Tesco Bank. Data generated between 18th December 2015 and 14th January 2016 (1,018 responses)
Tesco Bank Enhanced Free Parent Life Cover is underwritten by Aviva Life & Pensions UK Limited.
This is a level life cover plan that provides a lump sum on death of the life assured (parent) during the term of the plan. Customers who apply via the Tesco Loves Baby website will receive £15,000 of free life cover for one year. The plan can be taken out by eligible customers at any time from first registration to the Tesco Loves Baby Club, to before a child is four years old. At the end of the year’s free cover the policy will lapse, and we recommend parents’ should consider their life insurance options. There is no cash in value at any time.
The plan covers death of the life assured (parent) during the term of the plan, however the plan will continue to its expiry date in the event of the child’s death or pregnancy loss (miscarriage or stillbirth) or in the event that an adoption is unsuccessful.
Customers who apply for Tesco Bank Enhanced Free Parent Life Cover must;
- Be an eligible member of the Tesco Loves Baby Club
- Be pregnant, or
- Have a partner who is pregnant, OR
- Have officially been matched to a child for adoption, OR
- Have a child up to 4 years old
- Not already have or had a Tesco Bank Enhanced Free Parent Life Cover Plan
Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 6 million customers every day with everything from insuring their pets, to buying their first home. Our 4,000 colleagues serve our customers seven days a week from our four main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7.
Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. SC173199. Registered Address: Interpoint Building, 22 Haymarket Yards, Edinburgh, EH12 5BH. www.tescobank.com
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