The supermarket, which has been growing its presence in the financial services sector over the last 18 months, says fair life cover for the over 50s is long overdue.
It says many over 50s wind up paying in more than they would ever receive due to high premiums.
The exclusive product, backed by AIG Life, guarantees customers will only pay premiums until their chosen sum assured is reached, after this point their premiums stop but their cover continues for the rest of their lives.
If customers are between 50 and 75 they can apply without the need to fill in a medical questionnaire and premiums can start at £6.95 a month.
Other benefits are first month free, fixed monthly premiums and a £30 Asda gift card with the first policy.
Asda head of insurance Gideon Ingham says: “For too long, thousands of Over 50s Life Cover policy holders have been penalised for living longer by having to pay much more in premiums than is paid out.
“Asda has a long standing reputation as a consumer champion and will go that extra mile to identify policies which do not unfairly penalise customers. Our new cover is going to ruffle a few feathers, but it’s high time that this customer group was treated fairly – so we think that all over 50s life policies should put a cap on premium payments.”