Life insurance cash rewards – are they worth it?

Barclays is giving customers up to £150 to take out a new life insurance policy. But should a cash reward influence which policy you choose?

The high street bank isn’t the only one offering rewards to new policyholders. Other insurers are trying to attract new customers with incentives ranging from gift cards to free cinema tickets. 

But perks shouldn’t be the deciding factor when choosing a life insurance policy. Here, Which? looks at what some of the biggest insurers are offering and what to consider before signing up.

What is Barclays offering?

Life insurance is a crowded market, so some providers offer rewards and freebies to stand out. 

Barclays has launched a cash incentive worth up to £150 for customers who take out either Barclays Simple Life Insurance or a Life Insurance for Mortgage Protection policy.

Customers must be UK residents aged 18 years or older and hold or open a Barclays current account or Premier Current Account. 

This is how the offer works:

• Barclays current account customers Receive £100 if you pay a minimum monthly premium of £10.
• Premier Current Account customers Receive £150 if you pay a minimum monthly premium of £12.50. Customers with premiums of at least £10 but below £12.50 will receive the £100 reward.

To qualify, customers must apply for the policy before the offer ends on 25 November 2026 and start the policy within six months of submitting their application. 

The cash will be paid into customers' Barclays current account so long as they also hold the life insurance policy for at least 12 months and make all monthly payments. 

• Find out more: what is life insurance? The different types of policy explained 

What other life insurance deals are on offer?

Here's a snapshot of incentives up for grabs from some of the biggest UK life insurance providers:

• Aviva Apply for its Life Insurance Plan by 9 November 2026 and receive an Amazon gift card worth between £50 and £200.
• Legal & General Customers who take out a Legal & General Life Insurance or Decreasing Life Insurance policy can currently choose a £100 gift card from either Amazon gift or M&S.
• LV Take out an eligible life insurance policy and pay at least six monthly premiums on time and you'll receive a gift card worth up to £400. You can spend the money with a wide range of retailers including Boots, Ikea, and Tesco.
• Vitality The insurer is well known for its attractive rewards programme. Life insurance customers who stay active and healthy earn points they can redeem for discounts and freebies on everything from Caffè Nero coffee and cinema tickets to spa breaks and hotels.
• Zurich: New customers who take out a qualifying life insurance policy can receive gift vouchers worth up to £100 from Love2shop, Amazon and John Lewis.

Find out more: many life insurance providers offer ‘perks’, but are they worth it?

4 things that matter more than rewards

It’s important to shop around and find the right policy for you, regardless of the perks. To help you choose suitable cover for your circumstances, here are four other things to consider before taking out cover:

1. Type of policy

Before choosing a policy, think about what you need life insurance to cover – and whether you need it at all. For example, you might want to make sure your partner could continue paying the mortgage without your income, or provide financially for children if you died.

Life insurance gives your loved ones a lump sum when you die and is intended to replace lost income or cover costs such as a mortgage or loans, university fees and general living expenses. 

There are many different types of policies to choose from, but the two main ones are:

• Whole-of-life cover Pays out whenever you die, as long as you keep paying premiums. Some policies have a premium-paying term that ends at a set age, often around 90. 
• Term insurance Covers you for a set number of years and only pays out if you die during that period.

So how do you decide which is the right one for you?

Think of it like this: if your income were to disappear, how would the people around you look after themselves? If you have young children and a mortgage to pay, a term life insurance policy might be useful. If you have older children, or have paid off your mortgage, whole-of-life insurance could be a better fit. It can also be useful for other purposes, such as inheritance tax planning, where a policy written in trust can help beneficiaries meet an inheritance tax bill. 

• Find out more: best life insurance

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2. Cover level

First consider your debts, including mortgage, loans and credit cards.

Then think about other general expenses, such as utility bills and groceries. Don't forget other major costs that your family might need help with if you're gone – for those with children, for example, these could include school or university tuition fees, holidays, and extracurricular activities such as music lessons.

Depending on your situation, you might want to have more than one life insurance policy. For example, you might get a decreasing term policy to help your loved ones pay off a mortgage, and an increasing term policy to leave a lump sum for them to cope with other costs.

Once your policy is set up, make sure you review it regularly, especially if your life changes in any way – whether that's having another child or buying a new home. It’s normally fairly easy to amend your policy, but talk to your insurance provider to find out more.

• Find out more: how life insurance works

3. Price of premium

Life insurance can be costly, and what you pay depends on factors including your age, health, policy length and the amount of cover you need.

For example, our latest analysis found a 30-year-old non-smoker taking out a level-term policy lasting 20 years, with cover set at £300,000, can expect to pay anywhere between £88 and £152 a year. However, LifeSearch data shows the same cover for a 50-year-old non-smoker could cost up to £657 a year. 

Worried about the price of premiums? Here are a few ways to keep costs down:

• Only cover what you need You don’t have to match average cover levels. A lower payout can make premiums more affordable.
• Consider decreasing term cover The payout falls over time, making it suitable for a repayment mortgage and often much cheaper than level-term cover.
• Choose a shorter term A 20-year policy will usually cost less than a 30-year one because you’re covered for less time.
• Shop around Premiums vary between insurers, so compare quotes to find the best price for your circumstances.
• Quit smoking Smokers can pay significantly more. Always be honest about your smoking status – otherwise, you risk invalidating your policy. 

4. Exclusions

Life insurance doesn’t cover every eventuality, so check the small print before you buy.

Life insurance is primarily designed to provide a payout when you die and usually won't cover non-death events such as becoming critically ill or disabled. If you want protection against these events, you may need to take out a separate policy, such as critical illness insurance and accidental death or personal accident insurance.

Suicide is also often excluded during the first two years of a policy, as is death resulting from intentional self-inflicted injuries. If you’re struggling, Samaritans offers free, confidential support.

Other exclusions can include death linked to illegal activities or certain dangerous occupations and activities. Some policies may also restrict cover for deaths outside specified countries or regions.

Your cover will also end if you stop paying premiums and the policy lapses. And be honest when applying: withholding or misrepresenting information could mean a claim is rejected.