The Post Office today announced the launch of a new product into the life insurance market, and is offering a £100 cash back bonus to anyone taking out a policy. A minimum premium of £10 per month is required to qualify for the £100 cash back offer which is redeemable after the 12th monthly premium is paid.

Post Office Life Insurance has the flexibility for customers to choose Level Term cover which pays out a fixed lump sum to the deceased's dependents in the event of their death or Decreasing Term which is suitable for those with a repayment mortgage as the sum assured decreases in line with the outstanding mortgage.

Both products offer up to £500,000 worth of life cover and people can get cover from as little as £5 a month and choose the amount and length of cover they require.

The new life insurance will join the Post Office's recently launched Over 50s Life Cover to create a suite of life products, offering affordable and comprehensive peace of mind to customers wanting to protect their loved ones and their home.

In line with the Post Office's other financial policies, the new life insurance product is easy to understand and simple to apply for.

The Post Office will be able to accept more life insurance applicants on standard terms by using an interactive application process, which will see fewer applications referred to its underwriters for a decision on health issues.

Post Office director of insurance Phil Ashkuri said: "In line with our other financial services products, our new life insurance launch offers simplified insurance that fits our customers needs. We know that people buy life insurance at key stages in their lives, such as buying a home, getting married or having a child, which is why we want to make the process easy to understand and convenient. Also, with the £100 bonus offer available when taking out a policy, along with competitively priced premiums, this gives people a great deal."