Coles has expanded its insurance offering by moving into life insurance, with a product underwritten by MetLife.

The Wesfarmers-owned chain is unfazed by losses in the sector, with a spokesman telling insuranceNEWS.com.au life insurance “is a natural progression”.

“It was clear that a lot of our customers were underinsured with life insurance because it was considered too expensive,” she said.

Coles says it can offer cover from $1 a week. Finance Director Rob Scott – formerly MD of insurance division of Wesfarmers – says the product will be simple, easy to understand and easy to apply for.

There will be discounts for Flybuys members and consumers can choose stepped or level premiums.

The product offers a choice of cover up to $1 million, a funeral advance payment of $10,000 and Flybuys points. 

Coles says the $50,000 minimum sum insured is lower than the industry standard.