These offers and prices are correct as of 24/11/20 but are subject to change or withdrawal without notice by the cashback site and/or provider
- Post Office - Up to £1,100
- Beagle Street - Up to £1,050 cashback
- Aviva - Up to £1,000 cashback
- Virgin Money - Up to £1,000 cashback
- LV= - Up to £1,000 cashback
There’s also offers from other leading insurers. These include:
- Legal & General - Up to £900 cashback
- Direct Line - Up to £840 cashback
- Royal London - Up to £665 cashback
Post Office £1,100 TopCashBack offer
Let's look at the headline offer from Post Office on TopCashBack.co.uk of up to £1,100 cashback.
Sounds pretty appealing. Let's look at the detail...
Firstly, is everyone entitled to claim the £1,100 cashback when taking out a policy with Post Office?
The answer, unfortunately, is no.
While you’ll be entitled to claim cashback when taking up this offer, only those who obtain the maximum sum (a premium of £140+) will be eligible to claim £1,100 cashback.
While this sum is not the highest amount we’ve seen in order to claim a maximum cashback offer (for example, in order to claim Aviva’s maximum cashback offer your premium must be £250+), it’s still more than most people would need.
The reality for most of us, regardless of policy type and cover amount, is that our premiums will cost nowhere near £140 a month, let alone £250.
The £1,100 figure is quoted to encourage click-throughs, thereafter the cashback offer (as with ALL offers) is scaled.
The higher the monthly premium, the more cashback you receive. Which can lead you to pay more than is necessary if you’re unsure of the level of cover you require.
A more common premium would cost around £14 a month, which could still earn you £95 cashback - not bad.
However, as with free welcome gifts offered from insurers, the monetary value of the cashback over the course of an entire policy term is relatively insignificant.
Think about if you were to take out this hypothetical life insurance policy over a 30-year term to protect your family.
A £14.50 monthly premium for £200,000 worth of cover offers £95 cashback.
However, you could secure a cheaper policy from another provider – for example, a £12.25 monthly premium for the same amount of cover.
Over the 30 year term, the saving from the cheaper policy would be much larger than the cashback incentive.
The most important thing when securing life insurance is making sure you get the right policy, an appropriate term length, whilst locking in the best premium.
Remember your motive for taking out life insurance in the first place; to make sure your family would be protected if anything were to ever happen to you.
Try not to let a cashback incentive detract from your original motivation for life cover.
What's in the TopCashBack small print?
- The quote has to be started and completed solely on TopCashback
- Only available to new customers
- You’ll need to pay a certain amount of premiums before cashback is issued (typically this is 6 months of premium payments)
- Quotes obtained through a comparison site and then completed on TopCashback won't be eligible
- You must have your BACS details registered in order to acquire cashback
- Cashback rates are subject to change, (up and down)
- Cashback offer won’t be completed if you cancel the policy
- It’s wise to check the insurer's policy terms and conditions on their website
As you can see from the above, if you decide to go down the cashback route, it's important to read the small print to check you're eligible.