How to get discounted life insurance
Having a life insurance policy can provide protection for both you and your loved ones. For your heirs, it can offer funds for funeral expenses, debts, medical costs and more, and for you, it could mean a much-needed financial safety net. Some policies even let you withdraw cash or borrow against them.
Still, life insurance isn't cheap — and depending on how much coverage you want and the type of policy, there could be a hefty premium.
That's why it pays to speak with a life insurance expert. They can answer any questions you may have and help you get started with a free quote so you know exactly what to expect.
How to get discounted life insurance
Want to protect yourself and your heirs without breaking the bank? Here are five ways to get discounted life insurance — and save on premiums.
1. Pay in full
Many insurers offer life insurance discounts if you pay your annual premium in full rather than with monthly payments. This is because it removes the risk of nonpayment and ensures the company gets compensated — regardless of what may happen during the coverage term.
2. Bundle your policies
Bundling discounts — also called multi-line discounts — are common in the insurance world. They reward policyholders for having multiple coverage lines with a single insurer, and sometimes, they can amount to a significant amount. To see if there are any bundling discounts you might be eligible for, contact an agent with your car, home or rental insurance company.
A life insurance expert can also help.
3. Take safety precautions
Taking steps to stay healthy can qualify you for a discount, too. This might mean avoiding (or stopping) smoking, losing weight, committing to a regular workout routine or confirming that you don't participate in risky hobbies, like skydiving, for example.
You can also potentially reduce your premium by undergoing a medical exam as part of your application process. If you're given a clean bill of health, it may mean more coverage for less cash.
4. Take advantage of group discounts
Being a member of certain organizations or working in a specific profession can sometimes qualify you for a life insurance discount. Teachers and military members, for example, will often be eligible for small discounts on their premiums.
Ask your employer if there are any life insurance discounts you may be eligible for, or check with any organizations you may be a part of — like AARP or your fraternity or sorority.
5. Stick it out
There are dozens of insurance providers out there, so many companies will take big steps to keep existing policyholders around — even offering loyalty discounts for those who renew year after year.
If you set up automatic payments or opt for e-statements, you may be able to get an additional discount on top of that, too.
Other ways to get cheap life insurance
Getting insurance when you're younger and in better health is another smart way to lower your insurance costs. You could also opt for term life insurance over whole insurance or reduce your coverage benefit if money's tight.
Finally, make sure to shop around for your policy. Rates and coverage amounts can vary from one insurance provider to the next. You can use the table below to compare rates and providers.
Keep in mind: The type of life insurance you choose can play a role in cost, too. If you're not sure which kind of life insurance is best for your budget (whole life insurance, variable life insurance, term life insurance, etc.), talk to an independent insurance agent for guidance.
