Learn Everything You Need to Know about Life Insurance Discounts
(Let’s lower the price tag on that priceless protection, shall we?)
Maggie Tiede |July 26, 2018
Life insurance is a lot like a parachute: skydiving without one is never a good idea. Not to mention it helps protect you and your loved ones if something goes wrong, too. Lower your life insurance price tag with discounts and put more of your hard-earned money into living your best life, and maybe jumping out of more planes. YOLO!
Everything from your marital status to your quirky hobbies could save you big on life insurance premiums. Our independent insurance agents can help you find the discounts you deserve, save you some serious money, and get you covered where it matters. But let’s talk a little about life insurance discounts first. Grab your parachute, though, ‘cuz we’re jumping right in.
What Are Life Insurance Discounts?
It’s simple: life insurance discounts are a super-simple way to lower your premiums. But insurance discounts aren’t like coupons, though–there are no BOGOs or rebates. They’re more like a numbers puzzle that the insurance company uses to calculate how likely you are to pass on prematurely. The less likely that is, the less you’ll pay. Morbid, but true.
It’s important to remember that not all discounts will be spelled out in your policy, even if they’re still saving you money. You’ll likely know if you’re getting a military or veterans’ discount, but you might not realize you’re getting a discount for not going skydiving, too. It’s all part of the numbers puzzle.
What Life Insurance Discounts Are Available?
There are almost as many discounts available as there are insurance companies. But they can all be divided into four major types—so let’s talk about them:
Safety discounts: These are discounts you can get if the insurance company sees that you take good care of your bod. These include lower rates for those who don’t smoke, drink in moderation, and rock a regular exercise routine.
Sometimes safety discounts aren’t obvious. For example, your life insurance costs may be lower if you’re married. That’s because the insurance company has found that married people don’t tend to die prematurely as often. It’s all in the big puzzle.
Bundling discounts: These are discounts you can get if you buy multiple types of insurance with the same company. Say you need to get some car insurance along with your life insurance. Get both with the same company and they’ll likely cut you a sweet little deal.
Group discounts: These are discounts you can get if you belong to a certain association or profession. Commonly available group discounts include those for military members, teachers, and government employees. Other niche discounts include ones for farmers, clergy, and even dentists.
If you work in a dangerous field like logging, the military or Deadliest Catch-style Arctic crab fishing, it’s especially important for you to check with your employer and see if there are special deals you can qualify for. Otherwise you could be all caught up in much more than you bargained for.
Loyalty discounts: These reward customers who stay with the same insurance company for a long time. You can also get a loyalty-style life insurance discount for buying a nice round number’s worth of coverage, like 250,000 or 500,000.
How Hard Is It to Get Life Insurance Discounts?
Pretty easy. But sometimes life insurance discounts depend on things you can’t easily control. Sometimes you have to settle for less-than-ideal discounts, especially if you’re in bad health or go bullfighting on weekends.
You can offset the extra cost that comes along with being older, being sick or having dangerous hobbies by hunting extra-hard for bundling, group and loyalty discounts. Talk to your agent and your employer to make sure you’re getting everything you’re entitled to.
How Do I Get Life Insurance Discounts?
Chances are you’ll get a few discounts automatically whether you ask for them or not. Many of these discounts aren’t explicitly spelled out in your policy and are based on things you can’t always control, like your gender and age.
If you want to go beyond the automatic stuff, though—and you should—you can maximize your potential discounts by following these easy steps while you bargain-hunt:
Take notes: Write down all the information you think the insurance company will need. That includes details on your health and habits around smoking, alcohol and exercise. (Be honest—lying about this stuff can invalidate your benefits.) Also note your age, marital status, occupation and any special memberships you have.
Have a heart-to-heart with an agent: Make an appointment by phone or in person. Bring your notes with you, because the agent will ask you additional questions to get to know you better. And the more they know, the more discounts they can help you qualify for.
Compare wisely: When you get your quotes, don’t go for the lowest number right away. Ask your agent about what discounts have been applied. One of those higher-priced quotes could actually be offering more discounts—and better coverage, too.
Keep your agent updated: Did you switch jobs? Get a new car? Buy a house? Dropping your agent a quick line during these life changes can save you big money in the long run. They’ll help you find new discounts to make the coverage you need more affordable than ever.
When all else fails, keep calm and do cardio: Is the cost of life insurance sending your blood pressure through the roof? Some insurance companies offer health and wellness programs you can participate in and use to lower your premiums. If you can stick to it, it’s a great way to feel better and save money. Two birds, one stone.
The Awesome Benefits of an Independent Insurance Agent
Welp, now you know how discounts work. But your time is valuable, so why spend it doing all the hard work yourself? Our independent insurance agents stay on top of the industry and all the latest discounts so you don’t have to. That means they’ll help find the right coverage at the right price for you.
They’re not just there at the beginning, either. If disaster strikes, your agent will be there to help walk your loved ones through the process of getting the benefits they’re entitled to. Now that’s thinking ahead.