Life insurance will ensure that, after you pass on, any dependents you name will be financially secure. It can help handle unexpected and expected costs related to your death such as funeral expenses, mortgages, and even medical bills.
Thinking About Investing in Life Insurance?
Generally speaking, if you are interested in life insurance, it is better to set one up sooner rather than later. Life insurance is always more expensive for those at a later point in their life.
You might not be aware of just how competitive the life insurance market is and in this world, the consumer is certainly king. Each provider is desperate to make sure that you choose coverage from them rather than another company.
This is why many life insurance policies come with free welcome gifts. These can be anything from gift cards to pens or even the latest Apple Watches.
Is it worth choosing a policy based on the gift provided?
That’s one of the questions we’re going to discuss and answer throughout this article. First, though, let’s look at some of the real gifts available in the UK right now.
1. Compare the Market
Comparison site, Compare the Market, is offering an Amazon gift card up to the value of £195.
While this is the most generous gift offer available on the market, the actual value of the gift card you receive will be based on the cost of your monthly life insurance premium and the specific insurer that you choose.
For example, a premium price of £0 – £10 with Beagle Street and Legal & General could earn you a £30 gift card. The maximum gift card value of £195 can only be secured with Beagle Street and Legal & General policies with a monthly premium of £50.01 or more.
You’ll need to have held your policy for at least 3 months and have made 3 monthly premium payments before you can claim this gift. This is in contrast to a lot of other offers on the market, where 6 monthly premium payments must be made before you qualify for the gift offer.
2. Vitality
Vitality is currently providing a gift based on the Apple Watch 8 and SE.
Taking a different approach, with Vitality you can earn points by tracking your exercise and healthy habits to earn rewards.
For example, walking 10,000 steps per day, twice a week, could earn you 40 Vitality points. Walking 12,500 steps per day, five times a week could earn you 160 Vitality points.
The more points you earn, the more money you can get off the Apple Watch.
It’s important to be aware that when taking up this offer you need to agree to purchase an Apple Watch on a 36-month, 0% APR credit agreement with Vitality’s chosen lender. There will also be an upfront fee to pay, the price of which will be dependent on the model and specification of your chosen watch.
You’ll need to earn over 40 Vitality points each month to start earning money off your monthly Apple Watch payment. If you don’t earn enough points in a month, you’ll be required to keep up with the payments yourself.
3. Beagle Street
Beagle Street is offering a gift card or a pre-paid Mastercard up to the value of £100. The gift card options include Amazon, John Lewis, Morrisons, Love2Shop, M&S, and Tesco.
As with most gift offers on the market, not everyone is entitled to the full £100. The value of the gift card you receive will be based on your monthly premium price and you must be paying £30 or more per month to receive the maximum value.
As such, it is important to ensure that you are picking up the right policy and are not just signing up for the reward. Paying a lower premium, such as under £10, could get you a gift card of £25 and a premium price of £10 – £19.99 could get you a £50 gift card.
You’ll need to make 6 monthly premium payments before you can receive your gift card. Beagle Street is also offering an additional gift in the form of a novelty beagle soft toy – this will be sent out to you after you have made your 2nd premium payment.
Are the Gifts Worth It?
The above examples are just a small snapshot of the gifts available to UK consumers looking for life cover.
…but are the welcome gifts worth it?
There are a few problems with these gifts that you need to consider before you get blindsided. First, it’s important to note that these gifts provide short-term benefits.
For instance, while an Apple Watch may seem like a great freebie right now, it’s only going to be relevant for a few years. At that point, you’ll be eager to get the next product on sale and your item will be largely redundant.
Your life insurance policy on the other hand will continue. The same is true for cash payments and gift cards. They may look like a great deal when you get them, but they probably won’t last you for more than a couple of years.
In some cases, they won’t last longer than a couple of months and you’ll still be tied down to the policy.
That’s an issue as these gifts are often attached to certain requirements.
The company encourages you to get a large premium to get the best gift.
A premium that you might not need or may not suit you at all.
For instance, for the £195 gift card from Compare the Market, you will need a significantly high premium, not our basic standard cover while Vitality requires you to earn your reward by leading a healthy lifestyle. If you fail to earn points the monthly payment for the Apple Watch will need to be paid out of your pocket.
While you could switch to a better policy after you claim the gift, this is time-consuming, complex, and often costly. You may find that there is a significant fee to cancel an existing policy.
Does This Mean You Should Avoid Life Insurance Altogether?
On the contrary, life insurance can be very beneficial.
However, you do need to make sure that the overall policy suits your needs and that the premium matches your budget. Don’t choose a policy based on a short-term benefit that isn’t going to be relevant in a couple of years.
Instead, wherever you are in the world, look at a gift like this as the icing on the cake of a policy that you have already decided is right for you.
