Supermarket insurance policies often invalid

Thousands of consumers who have taken out supermarket travel and life insurance policies may find they are not covered if they make a claim, according to a new report.

Research by specialist financial intermediary Terra Blu reveals that the majority of supermarket policies are designed only for the super-fit and healthy. However, many people buy the policies without realising that they would not be eligible if they needed to make a claim.

People with conditions such as raised cholesterol, hypertension, asthma and diabetes are excluded from making a claim on most supermarket life and travel policies. Those who smoke, or drink more than the advised weekly limit, are also often excluded. Richard Gould, the managing director of Terra Blu, said: "Because the supermarkets are only selling life cover from a single mass-market provider, you may not be getting the most appropriate cover for your circumstances. If you are a non-smoking 28 year old with no pre-existing medical conditions or history of family illnesses, then there is no need to read on.

"But for the rest of us, there is a growing need to shop around for the financial planning and products that meet our specific needs at a fair price."

Gould said more than half of the UK population has raised cholesterol, essentially excluding them from taking out a supermarket policy.

However, consumers tend to favour supermarket policies due to their very competitive premiums, and often fail to read the terms and conditions. It is only when they come to make a claim that they realise their policy may not pay out due to their medical history.