When it comes to making sure that your family is cared for and covered, life insurance is a grim necessity. But what many people don’t realize is that there’s more than one type of life insurance. There’s also the possibility of getting life insurance with cashback.
To the unaware, that must seem like a very strange concept. In short, cashback websites allow the consumer to earn money back on their purchase. If you frequent Walmart or Amazon, you’re sure to have seen several different ways that this can occur. Buy a product through a link on the right site, and get a little extra money sent to your bank account with the purchase. The concept is very much the same for life insurance with cashback.
When you use a cashback site to look at your insurer or make a comparison, that site pays a commission for the customer referral – and you get a small piece of that commission. That’s where the ‘cashback’ comes from. The question is whether or not these life insurance policies that come with cashback are worthwhile. Is that really what you should base your choice of policy on?
In the UK, there are two cashback sites that are incredibly well known. Both Quidco and TopCashBack have become well known for the fact that they do actually send out the rumored money; they aren’t scams in that sense, and they both offer cashback via life insurance through their sites.
First, you register with the cashback site itself – either Quidco or TopCashBack – and then you use the provided link to locate your life insurance policy. Both platforms offer links to everything from Aviva and Royal London straight down the line to Zurich and Beagle Street.
Once you’ve clicked that given link, you make your life insurance plan purchase! It’s important to note that these plans are mostly ‘promoted’, which means that the life insurance company is paying for their link to be given a top and frequently advertised listing. This doesn’t affect the benefit that you’re given through the site, or the cashback, but for the sake of transparency it’s important that you realize they aren’t the top listing for no reason.
So the next question becomes how much do you get? Usually, just around £1,000. The listings are constantly changing, but that’s the average cashback price that’s been most frequently available.
Right now, the top five deals are –
We compare plans from the leading life insurance providers
It seems like a great offer until you read the fine print. As is often the case when it comes to supposed amounts of ‘free money’ there are some serious strings attached. You have to get the premium offer to be eligible for the cashback that’s being offered. That means you need to be putting out £250 in premiums every month, or you won’t be able to get that cashback reward.
Most people come nowhere near that much with the cost of their premium. The site is trying to encourage clicks and buys through offering such a large cashback sum – while maintaining their own business ‘integrity’ by finding a loophole reason on why they don’t actually have to risk paying out that much money very often. Now, you will get something! But it will be a much smaller amount than that fabled £1,000.
If you’re determined to get the £1,000 cashback, you will actually be giving the company a boost via buying into the largest policy type offered and paying a much higher monthly premium than you actually need for your specific lifestyle to be covered. Their goal is to use the cashback to lure you in, making their company seem more caring and more giving than their opposing companies.
The reality is that you might be able to get the same coverage for a much cheaper rate through a life insurance company that doesn’t offer cashback. That means even though there’s no immediate boost from going with another company – no cashback when you sign up – you’re still going to be saving money in the long run. That saved money adds up fast, even if it’s just a difference of £5.
When you’re looking to find the perfect life insurance, you are looking for a plan that will cover the cost of your funeral, handle your mortgage, and release some of the stress from your family. You want a plan that will cover the costs of your passing and help give your family some relief during a truly difficult and trying time. For the most part, that means you won’t need to pay out for the top tier plan that’s required to get the £1,000 cashback. You will be able to settle for a much cheaper and more affordable life insurance plan.
It’s also only available to brand new customers, meaning that you must actively be leaving your current insurance company and going to this new one; just changing tiers or coverage costs within your current company isn’t going to be enough to get you any amount of cashback. They’re trying to encourage new growth within the ranks of their clientele rather than simply offering a boost or a benefit to their existing clients. That’s one more red flag that you might want to check out other companies, trying to locate one that might put a bit more emphasis on keeping existing clients rather than using a sweetened prize to lure in new ones.
When you’re looking into life insurance, your primary objective should be in finding a plan that you can afford in the long term duration without risk of lapsing in your payments, and one that offers enough coverage to insure that your family will be taken care of. If there’s a life insurance plan offering cashback that fits into those compartments, there’s no reason not to take it – but you shouldn’t be swayed into paying more out of pocket in the long term simply because of the appealing nature of getting a bit of cashback.
Think smart when it comes to your life insurance – pick out the plan that’s right for you.