Read the terms and conditions of the insurance, what does the words actually say?. NAB in particular states that they wont accept purchases through Paypal. Personally I wouldnt do it such a contrived thing, If I want the insurance, I always do the spend directly, its just not worth it. Even if you ring and ask, and they say its OK. What happens if you go to claim and then they say NO. They wont accept hearsay, they will just refer you to the terms and conditions.
Thanks and great advice. I called westpac unsurance and they said it was ok as long as if when I claim I can prove the gift vouchers purchased were used.
Hopefully I dont need to claim. if I do I’ve registered with commbank for a backup. (no spend required)