On average, life insurance policies can cost anywhere from $132 to $9,696 per year, depending on factors like age, gender, term length, coverage amount, and more. However, regardless of the cost, finding ways to lower the cost is a common goal. If you’re wondering whether you can get a discount on life insurance quotes, here’s what you need to know.
Is It Possible to Negotiate Life Insurance Quotes?
Generally, you can’t negotiate life insurance quotes. The presented price is based on a formula that the insurer uses to assess risk and estimate the potential costs involved with providing your policy. As a result, simply requesting a lower rate isn’t likely to yield results, even if you have a lower quote from a competitor that you try to leverage.
However, that doesn’t mean you can’t adjust some of the presented terms to secure a better rate. Many of the features of a life insurance policy are adjustable, and shifting some of them could result in better rates. This isn’t so much a negotiation as it is a refinement of the presented policy, but it’s an option worth exploring if the quote is more than you’d like to pay.
What Else Can You Do to Lower the Rate?
There are several ways to secure lower life insurance rates. One option is to take steps to make yourself a less risky policyholder. Usually, that means taking steps to improve your health and eliminate risky habits. For example, smokers often pay 215% more for their coverage than non-smokers of the same gender and age, and who otherwise have similar profiles, so it’s a smart habit to ditch before getting life insurance.
Otherwise, looking for life insurance discounts is an option for reducing costs. What’s available can vary by insurer, but most companies have a selection of discounts that are potentially available.
Common Types of Discounts
There are several types of widely available life insurance policy discounts. Bundling the policy with other products available through the company may lead to a multi-policy discount. If you pay your annual premium in full at the start of the year instead of using monthly payments, that may lead to a price reduction.
In some cases, you can get discounts through a group association. This can include being a part of a specific occupation, working for a particular employer, or being a part of specific groups – such as the AARP – that negotiate for lower rates to the collective benefit of their members.
Healthy living discounts are often offered, but these are potentially already incorporated into the initial quote. This category usually includes price reductions for being tobacco-free, exercising regularly, or being married.
Remaining with the same life insurance provider can make a policyholder eligible for a loyalty discount. While this isn’t something that’s capturable right away, knowing one is available can help ensure you remember to request the price reduction once you meet the criteria.
Finally, going paperless or signing up for automatic payments could result in a lower-priced policy. Usually, these discounts are small, but it still helps you reduce how much you’re spending on life insurance in the long run.
