What is life insurance with cashback?

Cashback websites offer a way for consumers to earn money back on their purchases.

Money back can be earned on all manner of products, including life insurance.

Every time you click through from a cashback website, either to an insurer or a comparison site, they pay a commission for the customer referral.

Life insurance with free cashback

The cashback site then passes this commission back to you in the form of cashback.

But are these enticing life insurance with cashback offers actually worthwhile and is this a good way of buying your policy?

Keep reading this life insurance with cashback guide as we answer key questions, including:

This 'life insurance with cashback' article was updated on 25/11/24. Reassured don’t work with all the providers mentioned in this guide and you’ll only be eligible for the cashback offer when taking out cover through the cashback sites mentioned

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What cashback websites can I buy life insurance on?

Currently, there are two main cashback websites in the UK who dominate the market; TopCashBack and Quidco.

Both these sites offer cashback on the purchase of life insurance via their platforms.

In order to benefit from these incentives, you'll need to register your details with these cashback sites.

In the first instance, this means submitting your name and email address, but further down the line, you'll also need to set up BACS details.

Some of the UK's top insurers currently have cashback offers on these sites, including:

Smart insurance currently offers cashback directly to customers via their website.

They pay back 10% of the life insurance premiums paid within 14 days of you paying your 12th monthly payment.

Vitality (also known as VitalityLife) is another insurer that offers cashback opportunities directly.

To be eligible for their cashback rewards you would need to sign up for one of their benefit plans, such as Wellness Optimiser.

What are the best cashback on life insurance offers?

Whilst the below offers were the best we identified at the time of writing this review, it's important to say these offers are constantly changing.

What's more, cashback sites also label certain life insurance offers as either promoted (where the insurer pays for the no. 1 position) or exclusive listings.

Both these techniques are used to make certain insurers and their offers more prominent within their results.

However, the benefits of and principles behind cashback sites remain.

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TopCashBack life insurance

TopCashBack don’t provide their own life insurance product, but customers can use their site to browse cover options from a range of insurers with the opportunity to receive cashback on their purchase.

Let’s look at some of the best deals from TopCashBack…

Top 5 offers:

Topcashback logo1 Life insurance providerCashback value
Post Office Post Office life insuranceUp to £1,800 cashback
Aviva Aviva life insuranceUp to £1,500 cashback
Beagle Street Beagle Street life insuranceUp to £1,500 cashback
Legal & General Legal & General life insuranceUp to £1,450 cashback
Co-op Co-op life insuranceUp to £1,300 cashback

Source: www.topcashback.co.uk
These offers and prices are correct as of 25/11/24 but are subject to change or withdrawal without notice by the cashback site and/or provider

There’s also offers from other leading insurers. These include:

  • LV= - Up to £1,295 cashback
  • Vitality - Up to £1,250 cashback
  • Virgin Money - Up to £1,200 cashback

Post Office up to £1,800 TopCashBack offer

Let's look at the headline offer from Post Office on TopCashBack.co.uk of up to £1,800 cashback.

Sounds pretty appealing. Let's look at the detail...

Firstly, is everyone entitled to claim the £1,800 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 £300+) will be eligible to claim £1,800 cashback.

The reality for most of us, regardless of policy type and cover amount, is that our premiums will cost nowhere near £300 a month.

The £1,800 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.

Think about if you were to take out this hypothetical family life insurance policy over a 30-year term to protect your loved ones.

A £14.50 monthly premium for £200,000 worth of cover offers £85 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.

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.

Quidco life insurance

Similarly to TopCashBack, Quidco don’t provide their own life insurance product.

Instead, you can browse deals from various providers and receive cashback if you secure cover through one of their offers.

Let’s look at some of the best deals from Quidco…

Top 5 offers:

Quidco cashback Life insurance providerCashback value
Post Office Post Office life insuranceUp to £1,800 cashback
Legal & General Legal & General life insuranceUp to £1,400 cashback
Beagle Street Beagle Street life insuranceUp to £1,300 cashback
Aviva Aviva life insuranceUp to £1,300 cashback
LV= LV= life insuranceUp to £1,300 cashback

Source: www.quidco.com
These offers and prices are correct as of 25/11/24 but are subject to change or withdrawal without notice by the cashback site and/or provider

You can also find offers from other leading providers, including:

  • Virgin Money - Up to £1,250 cashback
  • Co-op - Up to £1,124 cashback
  • Vitality - Up to £1,000 cashback

Beagle Street up to £1,300 Quidco cashback offer

As with TopCashBack, the top offer on Quidco is from Post Office offering up to £1,800 cashback. As we looked at this offer in the previous section, this time let's look at the up to £1,300 cashback offer from Beagle Street currently available via Quidco.com.

Again, the only way you'll be eligible for the headline cashback offer is by paying the maximum sum (a premium of £250.01 or more).

As with life insurance with free gift offers, the monetary value of the cashback over the course of an entire policy term is relatively insignificant.

Generally speaking, life insurance needs to help cover your mortgage debt, the cost of family living costs and things like our funeral. These costs, in the vast majority of circumstances, can be covered for a mere fraction of £250 a month.

To put things into perspective, the Beagle Street website currently advertises £200,000 of life insurance from £6 per month (based on a 30 year old non-smoker over a 20 year term).

£200,000 is a very generous sum assured which could help to cover many expenses for your loved ones.

A premium of £6 per month could still earn you £70 cashback with the current Beagle Street offer.

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 insurance protection.

What's in the Quidco small print?

  • The offer is only available to new customers if you're renewing you're not eligible
  • If you apply an additional discount that reduces your overall purchase, this may cause your cashback to be declined
  • Quotes obtained through a comparison site and then completed on Quidco won't be eligible
  • Quotes obtained through Virgin Money and then completed on Quidco won't be eligible
  • You must have your BACS details registered in order to acquire cashback
  • You’ll only get cashback if you secure a policy directly through the Quidco website
  • You have to complete your purchase online to qualify, (not over the phone)

Other life insurance with cashback offers

Most commonly, to receive cashback when purchasing a life insurance policy, you’ll need to take out the policy via a cashback site (like the ones listed above).

However, some insurers are offering their own cashback incentives on policies bought directly. These include:

Santander - £150 or £100 cashback

Existing Santander mortgage, private banking, Select, Edge or Edge Up current account customers could receive cashback of £150 when taking out a new Santander life protection plan. This includes life insurance, life insurance with critical illness cover, standalone critical illness cover or over 50s plan. 

All other customers could be eligible for £100 cashback. 

If you've previously held and canceled a Santander life plan in the last 12 months, you won't be eligible to claim this offer. 

Santander will aim to pay the cashback 280 days after your policy start date. 

Smart insurance - 10% cashback

To be eligible for this offer you must take out a Smart Family life insurance policy.

Once you’ve made 12 monthly premium payments, you’ll be paid back 10% of your first year’s premiums.

Can you get life insurance with cashback at the end of term?

It could be possible to get cash back at the end of your policy term if no claim is made.

This would be through a ‘return of premium’ life insurance policy which allows the policyholder to claim back all the premiums they’ve paid into the policy if they outlive the term.

However, this type of cover can be hard to secure as very few insurers in the UK offer this option and it’s not something we offer at Reassured.

Even if you find an insurer who offers this option, it’s likely you’ll pay much higher premiums than with standard cover (this could be up to 40% more).

While getting money back always sounds tempting, it shouldn’t be the main focus that drives you to take out a policy.

The most important thing is that you secure cover that protects everything you need it to, at a price that fits within your budget.

Why not let our award-winning team compare life insurance quotes for you today?

Is it worth taking out life insurance with cashback?

If you know the policy you require and you can secure it through a cashback site, then it makes sense to benefit from some money back in the process.

However, the main objective should always be to take out the right long-term cover for you and your loved ones.

By securing affordable cover, that meets your needs, you could save more over the policy term than the cashback sum you could receive.

The most effective way of securing suitable life insurance is to compare different policies and quotes.

One option is to carry out the research yourself. However, this approach can be very time-consuming.

Also, if you have questions regarding how policies differ or perhaps life insurance jargon you don't understand, you may find it more difficult to get the answers you need.

Another option is to use comparison websites, such as comparethemarket.com or gocompare.com.

This option is very popular, in part because it's so convenient. However, there will be certain insurers not listed in their comparison findings.

Lastly, there's the option of a life insurance broker...

How much life insurance do you need?

Whether you’re planning on securing life insurance with cashback or not, it’s important to understand how much cover you might require. Simply fill in the fields which apply to you for an instant calculation.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk
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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk
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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk
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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk
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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org
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2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk
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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net
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What are the benefits of using a life insurance broker?

The key benefit of using a life insurance broker, such as Reassured, is you can draw on our vast industry experience.

A broker takes your individual details; age, budget, dependants, cover amount (or sum assured), term length and searches some of the best life insurance companies, sourcing multiple quotes.

We then pass these quotes back to you to choose the most suitable policy to meet your needs and answering any questions that you make have.

Ultimately, a broker works for you to ensure you secure suitable cover at an affordable price.

Cashback and life insurance in summary...

Cashback websites are a very viable option in 2024, especially if you know exactly the type of cover you want.

However, always compare quotes, as premium prices can vary wildly due to different processes and underwriting criteria used by each insurer.

If you’d like to take advantage of the cashback offers from Reassured or any of the insurers listed in this guide, you’ll need to secure your chosen policy through either TopCashBack or Quidco.

Any policies bought directly will not qualify for the cashback offer.

However we can help you run a life insurance quote comparison from some of the UK’s leading insurers.

We can unpick the industry jargon along the way and provide support during the application.

We'd love the opportunity to help secure your family's financial future, whilst saving you time and money.

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Sources:

The offers and prices stated in this article are correct as of 25/11/24 but are subject to change or withdrawal without notice by the cashback site and/or provider

Please note, if you purchase life insurance directly through a broker, like Reassured, you'll not be entitled to cashback

Reassured are in no way affiliated with TopCashBack or Quidco. This article is for informational purposes only

[1] https://www.topcashback.co.uk/category/life-insurance/

[2] https://www.quidco.com/life-insurance/

[3] https://www.beaglestreet.com/

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