Life insurance policies typically cost $132 to $9,696 per year, depending on age, gender, term length, coverage, and more. Regardless of the cost, lowering costs is a common goal. Find out if you can obtain a life insurance quote discount.
Can life insurance quotes be negotiated?
Life insurance quotes are usually non-negotiable. To determine pricing, the insurer employs a formula to quantify risk and insurance expenses. Using a competitor’s lower quote to negotiate a lower price is unlikely to work.
However, you can alter some terms to get a better rate. Adjusting various life insurance policy elements may lower rates. Since this is a policy modification rather than a negotiation, it’s worth considering if the quote is too high.
How else can you lower the rate?
There are various strategies to cut life insurance prices. Making yourself a safer policyholder is one solution. That usually entails improving your health and quitting dangerous habits. Smokers pay 215% more for life insurance than non-smokers of the same gender, age, and profile; therefore, it’s best to quit before buying.
Otherwise, life insurance discounts can lower prices. Most insurers offer discounts, but they vary.
Common discount types
There are several popular life insurance discounts. Bundling the policy with other company goods may offer multi-policy discounts. If you pay your annual premium upfront rather than monthly, you may save money.
Group associations may offer discounts. This can include being part of a specific occupation, employer, or group, such as the AARP, that negotiates lower prices for its members.
Sometimes the initial quote includes healthy lifestyle discounts. Prices typically decrease when one quits smoking, engages in regular exercise, or marries.
Life insurance policyholders who stay with the same company may receive loyalty discounts. Although you can’t immediately capture this, being aware of its existence will remind you to pursue the price reduction once you meet the requirements.
Finally, adopting paperless or automating payments may cut policy costs. These savings are usually tiny, but they cut life insurance costs over time.
