How to Find the Best Life Insurance with Free Gifts 2020

How to Find the Best Life Insurance with Free Gifts 2020

These are very strange and scary times and for many of us life has rarely felt so fragile.

Unfortunately, every day we are exposed to the horrible news of further family loss.

This has led to a surge in the UK population enquiring and taking out life insurance protection.

Life insurance provides an affordable way in which to protect your loved ones financially if the worst happens and we were no longer around to provide.

For example, it could cover mortgage repayments and/or family living costs or provide a substantial inheritance. The cost of the cover (or the premium) starts from just 20p-a-day for £200,000 of cover.

Another viable option, especially if you have a young family is family income benefit (or FIB).

This is a less well-known policy; instead of receiving a single cash lump sum you instead are paid a monthly income for the remainder of the term. Effectively replacing a lost income. Great for long-term budgeting and a very cost-effective option.

The cost of all premiums are heavily influenced by the likelihood of a claim; so your age, medical history and smoking status are key criteria.

It is important to state that at the time of writing this review, the life insurance market in the UK has largely remained unaffected by Coronavirus. Payouts are still issued, policies are still being underwritten and premiums have largely been unaffected.

Read my article on the different types of insurance a family needs.

The free gift incentive.

As with many different products in the marketplace, providers offer a free welcome gift to entice you in.

But is this free gift a good idea and worth it?

At present most insurers and comparison websites will offer you a free gift as a reward for using them. This gift usually takes the form of a free gift card from the likes of Amazon or Love2Shop.

Some of the highest value monetary gifts (as of 02/06/20) can be seen below;

• £195 Amazon gift card – Compare the Market
• £180 Amazon, M&S / Tesco gift card – Churchill
• £100 Amazon gift card – MoneySupermarket
• £100 Amazon gift card – Beagle Street
• £100 John Lewis / Amazon / Love2Shop gift vouchers – Zurich

Leading life insurance broker Reassured recently wrote an in-depth review on life insurance with free gifts if you require more detail.

Whilst these £150+ gift cards are very tempting in the short-term, they may or may not be the best available option.

Compare, compare, compare quotes.

A life insurance policy term is normally set to either protect a mortgage or family living costs until your children are financially independent.

When a life insurance policy mirrors a mortgage term for example, this usually lasts 25 years and ensures if you were no longer around your dependants would not be forced to move from the family home at an already distressing time.

When you consider in order to benefit from this protection you need to pay your premium every month for 25 years, it becomes clear a £150 welcome gift card becomes a pretty insignificant sum.

The most important thing is to ensure you get the right policy, from the right insurer at the right price.

That said, if after comparing multiple quotes you have established that the cost is very similar between providers then if could be worth being led by the best free gift offer.

However, due to different underwriting processes and criteria prices tend to vary, sometimes wildly. So, always compare, compare, compare quotes.

A £1.50 a month saving over 20+ years can end up being a considerable sum of money, so this is time well spent.

Would you like to find other simple ways of saving yourself money.

How best to compare quotes?

The most important thing is to compare multiple quotes from different insurers. However, most of us do not have the time to dedicate to research, what with the kids and a busy family life.

Other options include using a price comparison website, such as Compare the Market or Money Supermarket. The main benefit of using these sites is that they are available 24/7 and so very accessible.

Another option is to use an FCA regulated broker. A broker can take the form of advised (where they recommend a particular policy) or non-advised (where they take your budget and personal details and suggest options).

The main benefit of using a broker is that they can help you compare quotes, guide you through the application process and even help you write your policy in trust, (which could help you avoid 40% inheritance tax).

What’s more, many offer a fee-free service (as they are able to earn their money through commission from the insurer).

In conclusion.

There are many free gift options available when you research the life insurance market. However, this should not be your main focus when looking to secure a policy.

Over the course of an entire term, it is much more important to choose the most cost-effective long-term option.

Regardless of which policy you choose and whether you go for a free gift incentive or not, the single most important thing is to ensure your loved ones are not expect financially exposed.

If you have people who rely on you, the reassurance of life insurance can be very comforting, (and all for the cost of a packet of crisps a day).

Allowing you to get on with your family life safe in the knowledge you have made a selfless investment in their future well-being, whatever it may hold.

Guest Article.