I’m sure you’ve all seen the adverts for Vitality, the ones with the cute sausage dog, who just doesn’t want to run anymore (and is my spirit animal).
Now, I use Vitality as my health insurer for my mortgage. With this health insurance, there are a lot of discounts available, and you are awarded for being active with points, with which get you even more discounts. So far, this seems like a really good deal. I love a bargain.
The accountant in me wants to find out how good of a deal. Really how good, not “I could save £x amount each week, but I wouldn’t have bought that without the discount” good.
First off, I took advantage of their Apple Watch offer at the end of last year. I got £70 cash back from my first year for getting enough points to be up at Gold Status, which I used for the down payment on the watch. Now, depending on how many points I get in the month, depends on how much I have to pay towards the watch. So far, I’ve managed to scrape enough points each month to not pay anything! Free Apple Watch! But this is a three year deal, so there’s a long way still to go, and I am tied into the Vitality health insurance whilst this deal is on. Clever. Also, I would never have bought the watch if it weren’t for the deal, so this is not counting towards my savings.
So let’s look at some savings that do count:
I currently have a cinema ticket and a Starbucks drink to use this week. However, my partner is working nights, so we won’t be able to use the cinema tickets this week (he has a policy too). I will be using the Starbucks drink though.
I’ve also taken advantage of some of the once-a-year deals this week. After the marathon, I thought I would treat myself to some new trainers. With Vitality, you get a 50% discount at Sweatshop, so that’s new £100 trainers for £50. I suppose an argument can be raised that I wouldn’t have bought the trainers if I didn’t get the discount, so is it a saving of £50? Or an additional spending of £50? I like to think of it as a saving. The tread on my old trainers has nearly vanished, so I do need new ones.
I mentioned my folding bike in an earlier blog, and the Vitality deal means I get 50% cash back from Evans. The cash back is spread over a year, again I suppose to make sure you don’t leave Vitality, but as I have no plans to, I’ve got to get my mortgage life insurance from somewhere, this doesn’t worry me. Therefore, my £439 folding bike, is costing me, over the year, £219.50. And I would have spent this without the discount, I need to cycle more for my challenges this year, and it will save me time and money on my commute.
(Bonus savings! On a normal day, I would spend £2.40 a day on tube travel, which equates to £48 a month. With my folding bike, I won’t be spending that £48. Whoop!)
The words are getting too complicated for my accountant’s brain, let’s use a table.
|Starbucks Drink||Need 12 points in a week to earn it. I will use the free drink every week.||£4 (I work on Oxford St, high prices!)||£208.00|
|Cinema||Again, 12 points needed, and I’ll say we use this perk every other week.||£12.10||£314.60|
|Trainers||No points needed, just a policy||£50 (for me, if you buy more expensive trainers, more savings)||£50.00|
|Bike||No points needed, just a policy||£219.50||£219.50|
|Apple Watch||Wanted to add this to the list, but there’s no way I’d have bought one if it wasn’t free, so I’m not going to show any savings for it.||£-||£-|
So that’s a total annual saving of £792.10. But, the bike saving is only available every three years, so I should really divide that saving by three for the comparison. Giving a total annual saving of £646.
My Vitality insurance costs me £33.74 a month, £404.88 a year, and of course, I don’t just get the access to the discounts, I also get the insurance, which I would have to buy elsewhere if I didn’t have Vitality. That’s a saving of £240odd a year. Nice.
In summary, Vitality Insurance seems like a great deal, as long as you take advantage of all the discounts, on things you would have bought anyway. Everything in my list, l would have bought, with or without the discount, so they are genuine savings (you don’t want to see my monthly coffee bill!).
And no, Vitality didn’t pay me to write this, but I do get asked a lot of questions about it when I mention I have a policy. I can now happily tell people, it’s definitely worth it, for me at least.
A quick shoutout to Fitness Rewards, these are the people who set me up with the policy, and who make sure I’m aware of and use the discounts, and helped me set up my steps tracker to ensure I get maximum points.