Sainsbury’s (SBRY.L) has confirmed a new agreement with Legal & General (LGEN.L) to sell life cover products under its Sainsbury’s Finance brand.

The commercial agreement means Sainsbury’s will be selling Over 50’s life cover, critical illness and standard life insurance in over 800 stores across the UK and through the Sainsbury’s Finance web site.

Chris Last, managing director of L&G’s bank and building society distribution division said that Sainsbury's is a key strategic partner for the insurer in the non-traditional financial services sector.

He added, ‘It is testament to the strength of our relationship that we have been able to demonstrate how our value for money products and strong brand can deliver real added value.

‘We will be working on extending the range of products available to Sainsbury's customers during 2011.’

David Fisher, chief executive officer of Sainsbury's Finance said Sainsbury’s is a trusted brand with an excellent reputation in the market with good credentials.

He said, ‘We will continue to benefit from a strong relationship with a partner whose desire to provide innovative and competitively priced products to the Sainsbury's customer matches our own.’

Legal & General has had a distribution relationship with Sainsbury's Finance since 2004.

Sainsbury's was the first major British supermarket to open a financial division, commencing trading in February 1997.