Post Office Life Insurance

lisa21

Hi, just wondered if anyone has taken up the Post Office's Life Insurance offer with £100 cashback? From what I understand you get the £100 at the end of your first year, but with this and £40 Quidco cashback, a year's cover for myself and my husband would only cost us £10....very tempting!

dunstonh

Its life assurance, not life insurance. Life insurance is what the Americans call it. The British call it life assurance. Unfortunately, some companies seem to be caving in to this Americanism whilst others, like the post office, cater for the bottom end of the market so cave in to lack of knowledge and dumb down their marketing and go with the misnaming.

You need to work out if the cost of the life assurance over the term is more expensive than you can get elsewhere. No point saving money now only to find you lose that saving over the rest of the years.

lisa21

thanks but I'm aware that it's actually Life Assurance, but the Post Office product is named Life Insurance - hence me stating that in my post. I've checked the level of cover, overall cost etc - that's all fine. What I wanted to know was whether anyone else had taken the £100 cashback deal and used Quidco?

dunstonh

I'm aware that it's actually Life Assurance, but the Post Office product is named Life Insurance - hence me stating that in my post

I know. Its just a pet hate of mine where companies dumb down or use incorrect terms because it sounds better. Insurance/Assurance is one. The other is calling fixed term deposits "bonds" when they are not.

I've checked the level of cover, overall cost etc

How does that compare to say Cavendish doing the life assurance? I would expect them to come in with lower monthly premiums so going with the PO may be a short term gain but long term loss.

xanthe

I just came across this while looking for Life Assurance for my husband and me.

Doing the math - As I intend to cancel after 12 months my year terms is only 5 years (no difference in premiums between 3 and 5 year terms) then I tried to get the maximum benefit amount that takes me closest to the minimum £10 premium.
As it says in the terms and conditions for the £100 offer - "Letter to redeem £100 cash will be sent to you within 28 days of payment of your twelfth monthly premium" I will calculate the total number premiums to be paid to be 13 months. I'll make sure to have alternative assurance arranged before canceling the direct debit payments as soon as the letter has arrived.

Terms and conditions of Life Assurance:
"If any payment is not paid on the due date or within the thirty days grace allowed, the Plan will be cancelled and all benefits under it will end."
http://www.postoffice.co.uk/portal/po/jump1?catId=19300223&mediaId=61000695


For my husband: 5 year term for £200000 costs £13.04 per month (smoker)
For me: 5 year term for £340000 costs £10.16 per month (non-smoker)

Total Cost: £13.04 x 13 + £10.16 x 13 = £169.52 + £132.08 = £301.60

Total Redemption: Quidco: 2 x £43 + 2 x £200 = £286

Actual Cost: £301.60 - £286 = £15.60 per year or £1.20 per month for both of us

After a year I can cancel the policies then take out whatever is on offer or use Cavendish. As me and my husband are both in our 20s, premiums shouldn't raise by too much if we take out a new policy next year.

payless

So life cover for free ? So long as they pay out that £100

£43 from Quidco

Terms and conditions

Terms and conditions of £100 cash offer

1. Minimum monthly premium for the offer is £10
2. Only one £100 Cashback offer per policy eg. joint policies will receive £100
3. Only one £100 Cashback offer per customer, which must be redeemed for cash at a Post Office® branch within 3 months of receipt
4. Letter to redeem £100 cash will be sent to you within 28 days of payment of your twelfth monthly premium
5. We reserve the right to withdraw the offer without notice at any time
6. Cannot be used in conjunction with any other offer
7. All information correct as of 15th October 2007

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and there's me just in need of 5 yrs decreasing term assurance , that would cover my son's 5 yrs further education needs if I should die within that time .. comes out at exactly £10pm ( although I have a feeling circumstancers may change in say 12m onths time :-)

payless

Validated quidco already