Tesco has teamed up with AXA PPP healthcare to offer private medical insurance via it's Personal Finance brand and claims that prices will be up to 32% lower than comparable health insurance products.

The new Tesco Health Insurance products are intended to provide value for money and simplicity with no medical questions if you are under 76. Policy holders can also accumulate a no-claims discount of up to 55% over four years. Customers aged between 18 and 75 can buy the cover by phone or online without having to fill in complicated medical questionnaires. Leaflets promoting the new health insurance will also be available in 1,000 Tesco supermarket stores.

With just two levels of cover branded Premium and Core, Tesco has strived to keep the choice simple. Premium policies will offer both in-patient and day-patient cover, out-patient scans and cover for cancer radiotherapy and chemotherapy, plus £1,000 per annum for additional out-patient benefits. Core policy customers will receive the same but without the £1,000 of extra out-patient benefits.

Jeremy Sutton, head of savings and investments at Tesco Personal Finance, said... "Our customer research suggests that perceived high prices, complicated products and complex medical questions have been major stumbling blocks to buying health insurance. We aim to change that by offering products that are simple, good value and easy to buy. Our approach will open up the market to people who want the choice that health insurance offers."