On Tuesday I wrote this post on four Tesco Clubcard bonus point opportunities. I said that I would write more about this offer for Tesco Life Insurance and Tesco Critical Illness Cover, since it could be attractive for some people.
The crux of the offer is that if you take out Tesco Life Insurance or Tesco Critical Illness Cover before 15th August, you will receive 3,000 Clubcard points.
This is worth 7,200 Avios points or 7,500 Virgin Flying Club miles at the base rate, and a whopping 10,800 Avios or 11,250 Virgin miles if there is a repeat of the current ‘50% bonus miles’ Tesco conversion promotion.
The minimum monthly payment for Tesco Life Insurance, if you are under 50 years old, is just £5 per month. You need to keep the policy going for 6 months to stop Tesco taking back the Clubcard points (they seem to post in 3-4 months) so you are looking at an outlay of £30. For 7,200 Avios this is a very decent deal, at under 0.5p per Avios.
If you convert during a conversion bonus, you would be looking at around 0.3p per Avios which is a real steal.
Now, there are a couple of things you need to know before you apply.
- If you are not in perfect health, you may be asked to take a medical before you are accepted. This is obviously not worth the trouble for a few cheap Avios. You therefore need to decide whether or not to be truthful about any medical conditions you have (technically fraudulent, but Tesco cannot double-check. If you did die, they would simply refuse to pay out when they found out about your pre-existing condition.)
- If you are in perfect health, there is a chance that you will be selected for a random medical. However, you can simply not bother and terminate the application at this stage.
- If you already have life insurance, check to see if you are allowed to have multiple policies (you are usually OK up to a certain level of cover)
- You will have to deal with quite a bit of paperwork. You will be sent policy documents and cooling off cancellation forms, and once you cancel your direct debit you will get various warning letters telling you that your policy is about to lapse.
That said, you can apply online and can cancel simply by cancelling your direct debit with your bank, so no human contact is required! The quote form is very straightforward, and allows you to set your monthly premium (put in £5) and term (put in 5 years, which is the minimum, although you can cancel at any time) which gets you around £30,000 of cover.
It is not clear if you can get 6,000 Clubcard points by applying for both Life Insurance and Critical Illness cover. I know someone who did get both last time this promotion ran in 2011, but this may have been a fluke. It is up to you whether you apply for both or just the Life Insurance.
You need to get your quote by 15th August – in theory you can apply later and still get the bonus – so if you want to apply you need to do it during the next few days. It is certainly worth thinking about, especially if you are under-50 and can get the £5 per month terms.
How to earn Avios from UK credit cards (September 2023)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
There are two official British Airways American Express cards with attractive sign-up bonuses:
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points.
Run your own business?
We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.
You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.
EDIT: Applications for this card are temporarily suspended due to IT issues with the British Airways On Business SME loyalty scheme.
There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.