Life Insurance Discounts, The Ultimate Guide
When it comes to shopping for life insurance, it is safe to say that you might want to save a little bit of money. Life insurance can be expensive, so a little bit of extra money here or there can make a difference.
Fortunately, there are plenty of ways for you to save money while shopping for life insurance. Life insurance discounts are everywhere and can be pretty easy to qualify for. Some are pretty specific and may only work for certain policies or people.
As you shop for life insurance, be on the lookout for good deals. Be aware of whether these are legitimate or not though so that you do not get taken advantage of. Many of the life insurance discounts out there are very legitimate and effective at saving you money.
One of the main reasons to look for discounts on life insurance is because so many factors can affect your premium. If you are not in great health, your premium will go up. If you participate in a dangerous sport, your premium will go up. By using a discount, you can offset the cost of anything that may increase the cost of your premium.
Discounts are especially useful if you do have a health condition that could affect the cost of your policy. In most cases, having a health condition or participating in high-risk activities should not necessarily affect your chances of being able to use a discount.
Here is the ultimate guide to life insurance discounts. Be sure to use this as you shop around for a life insurance policy so that you can save as much money as possible.
Different Types of Discounts
Because so many different types of people are looking for life insurance, there need to be different types of discounts. For example, there are discounts made specifically for veterans. There is a long list of discounts that can work for each type of person so be sure to look for one that will work best for you specifically.
Some of the most common types of people who are able to get life insurance discounts include veterans and healthy individuals. If you fall into one of those two categories, you are in luck! Of course, there are plenty of other discounts available.
There are also simple individual categories of life insurance discounts. These are discounts that apply in specific situations that are not always based upon the health of the person signing up for the policy. These include the following:
Life Insurance Discount for Safety
These are often given to people who are healthy and take the necessary precautions to keep their bodies in great shape. If you are active, are not a smoker, and do not drink too often, you will likely be eligible for some type of health or safety discount. Cleaning up your diet for a short amount of time before you get life insurance will not necessarily make a difference. This discount is more for people who have been healthy for a decent length of time.
Group Life Insurance Discounts
Group discounts are for specific groups of people. For example, if you are a teacher, there are particular discounts for teachers. These discounts are often based on your profession or a type of association. These do not exist for every profession or association, but they do for some. Be sure to check with your insurance agent to find out if they will work for you and your profession. You can also check with your co-workers to see if their life insurance company offers them a discount. Then, you would know which companies to look into.
Loyalty Life Insurance Discounts
If you have decided to use the same life insurance company for a while, they will gladly offer you a discount because of your loyalty. For example, if you have gotten term life insurance from the same company for the past 30 years, they will be more likely to offer you a discount. Some companies may do this if you have had car insurance with them for years and are now wanting to get life insurance from them as well.
Life Insurance Bundling discounts
Bundling discounts are applied when you choose to use the same company for multiple types of insurance. For example, if you get life insurance and car insurance from a company, they will often “bundle” the policies, which means they combine them in a way. Companies will offer discounts here because they are already getting more money from you with both of your policies from them. If you have one type of insurance from a company, they may send you regular emails or mailers telling you why you should switch your other types of insurance over to them.
Note that not all of these types of discounts will be applicable to all types of life insurance. Some are only for term life insurance, some are just for whole life insurance, and others may be even more specific within each of those categories. Be sure to look for a life insurance discount that works for the type of life insurance policy you are interested in.
Not all life insurance companies offer the same types of discounts either. It is a good idea to work with an independent agent who can lead you in the right direction. They know the ropes and can show you all of the possible discounts. Let them know that you are interested in saving a little bit of money so they can look into the deals available. Giving your agent a lot of information about yourself can help too so that the find the deals that you are actually qualified for.
Luckily, since there are a variety of life insurance discounts available, you should be able to find one that works for you. If not, be sure to check with some other companies to see what they may be able to offer you.
Life Insurance Discounts for Veterans
When somebody is an active member of the military, they get life insurance with the Servicemember’s Group Life Insurance. That ends 120 days after they leave the services though. There are still ways for veterans to receive discounts on their life insurance.
The discounts available to veterans can vary by the company. Many companies do offer some kind of savings for former active members of the services.
Because the Servicemembers’ Group Life Insurance ends relatively quickly after someone leaves the services, a veteran should try to get life insurance as soon as possible.
The following companies offer some type of support or discount to veterans and their families:
- United Services Automobile Association (USAA)
- Navy Mutual
- National Agents Alliance
- Uniformed Services Benefit Association (USBA)
- Veterans Group Life Insurance through Prudential Insurance (VGLI)
- Military Benefit Association (MBA)
- Veterans of Foreign Wars and Transamerica (VFW)
- American Armed Forces Mutual Aid Association (AAFMAA)
- Armed Forces Benefit Association (AFBA)
Each of these companies offers different insurance policies and different discounts too. It is best to work with each of them to see what they can offer you if you are a veteran. Keep in mind that there may be specific requirements for you to meet in order to qualify for these discounts.
VGLI is one of the most popular insurance companies for veterans. They do a good job of working with veterans and have guaranteed acceptance. The costs are low for young veterans, but they will go up significantly later on.
In addition to the companies listed, other companies may offer discounts for veterans. It is a good idea to ask around and see what they can do for you. Ask fellow veterans if they have a specific insurance company to recommend too.
Just because one company may offer you a great discount does not mean you should choose them. As with all insurance companies and policies, you need to do your research and find what is best for you and your needs.
Life Insurance Discounts for Healthy People
When you start looking into life insurance policies, you will quickly find that your health is very important. Depending on your health and the results of your medical exam, you may not be paying very much for your insurance.
For people who are already healthy, this is a great way to get a discount. All you have to do is make sure you are maintaining that healthy lifestyle before you have your medical exam. It is super simple.
Life insurance companies offer discounts for healthy individuals because it is less risky to insure someone who is healthy. You are likely to live longer and have fewer health complications when you are already healthy. That is simple, right?
When you are trying to get life insurance discount, show the companies that you are healthy. This will be apparent in your medical exam and when they ask you questions about your lifestyle.
Some of the lower rates available from many insurance companies are for the following people:
- Those who do not smoke
- Those who drink moderately
- Those who are active or in shape
It is pretty easy to get these discounts if you are already active and taking care of your body. If you are not already healthy, you can make a few small changes prior to your medical exam that may help. Those who are already healthy are more likely to receive good discounts though.
If you have a serious health condition or are a smoker, you will very easily end up with a higher premium. How healthy a person plays an important role in how much they are paying for life insurance. If possible, try to find ways to get healthier far in advance so that you are eligible for better deals.
Discounts for Active People
Active people are another type of healthy people. If you are active and taking care of your body, you deserve a discount on your life insurance. Remember that companies want to insure people who are less at risk for disease, illness, or death.
If you are a runner, swimmer, or just a healthy eater, there are discounts made just for you.
One of your options is the John Hancock Vitality Program. This is a different type of life insurance that rewards you for your healthy habits. This company wants to see people living well and they understand that lower risks of health complications when you are physically active.
The John Hancock Vitality Program offers life insurance, but it is a little bit different from what we are used to. You save money on your coverage for your healthy choices. You also have the opportunity to earn rewards for simply living a healthy lifestyle.
The John Hancock Vitality Program offers two unique levels of benefits, including Vitality GO and Vitality PLUS. It is a good idea to compare the two and see which works best for your lifestyle.
When you make healthy lifestyle choices, you can earn rewards including the following:
- Amazon and REI discounts
- Healthy living magazines
- Discounts for wearable fitness devices
- Meditation subscriptions
- And more!
All of the benefits of the John Hancock Vitality Program come from just living your normal, active lifestyle. If you are a swimmer, a runner, or another type of athlete, this may be the best choice for you.
While it is a good idea to be active when you get life insurance, you should avoid working out right before a medical exam. When you do this, your pulse and blood pressure are higher. Even though this is a natural cause of working out, the medical examiner can see those high numbers as health risks. You may end up paying more for this reason.
Life Insurance Discounts for Government Employees
If you are a government employee, you get to take advantage of a reduced rate for your life insurance. Most government employees can get Federal Employees’ Group Life Insurance (FEGLI) coverage through the government. Many of their families also end up receiving the benefits of FEGLI.
Over four million active and retired government employees are currently covered by FEGLI. This type of life insurance is very basic. It does not include cash value buildup. It is simple coverage, but it does the job.
The discount only applies to basic insurance. The government pays one-third of the cost and the employee pays two-thirds. The employee’s percentage is taken out of their paycheck. If the employee would like to add on any additional insurance, they can do so. The government does not pay for those extras though.
This is a very easy way for government employees to save on their life insurance. Government employees also avoid paying more or less based on their age. This basic insurance option makes it simple to make sure that all government employees are covered by FEGLI and receive their benefits.
How to Get the Lowest Discounted Rate
When you are shopping for life insurance, you are likely looking for a good deal. To find the best discounts, there are a few things that you need to do. Keep in mind that the deals vary from company to company. Your eligibility may be dependent on your health and a number of other factors too.
Here are some of the ways that you can get the lowest discounted rate:
- Be healthy: This is something that you will have to start well before you decide to get life insurance. Eating healthy and working out for one or two days before a medical exam will not be very beneficial. If you get in the habit early, you should have no problems getting any health or safety-related discounts. Make sure you tell your independent agent everything they need to know about your health.
- Do well on the medical exam: Most life insurance policies require you to be evaluated during a medical exam. This tells the insurance company how healthy or unhealthy you are. If you are not healthy, it is riskier for them to insure you. They have to take that into account when creating your policy and setting your premiums. There are a few things you can do to perform better on the medical exam:
- Improve your diet: Eating healthy for about a week prior to the medical exam can make a difference in your results. Try to steer clear of processed foods and foods high in fat, sugar, and salt. Vegetables are always a good idea.
- Drink more water: If you are a heavy alcohol drinker, try to cut that out for just a few days. Drinking a lot of water helps to get rid of the toxins in your body too.
- Avoid coffee: Coffee can seriously affect your blood pressure, which will make it seem like you have even higher blood pressure than you do. This is not good when it comes to medical exams.
- Avoid bulky clothes: Heavy clothing can greatly affect your weight. Try to wear loose, thin clothing. This will allow your weight to be as close as possible to your actual weight. Depending on your weight, you may pay more or less for your life insurance policy.
- Do not work out right before your medical exam: Working out increases your pulse and blood pressure. If you are going to work out, do it more than 24 hours prior to the medical exam.
- Get plenty of sleep: If you sleep well prior to the exam, it will show in your pulse and blood pressure. Aim for eight hours of sleep the night before the exam. If possible, try to do this for a few nights ahead of time.
- Buy term life insurance: Term life insurance is insurance that you buy for a designated amount of time or a term. This type of life insurance is much less expensive than whole life insurance. This is an easy way to save money, especially if you already decided that you wanted term life insurance. By getting term life insurance, you are only paying for what you need. Your health and age are important for these policies too so make sure that you are prepared for the medical exam.
Something to be aware of is guaranteed issue life insurance policies. With these policies, you are forgoing the medical exam. This means that the life insurance company is taking a gamble when they insure you and they may choose to charge you more. Always go through with the medical exam unless you are sure that you will not be insured otherwise.
You should make sure that you only get the term life insurance that you really need. By reducing the amount of term insurance that you are buying, you are also keeping your premium to a minimum. This is a good, simple way to save money too. It is better than wasting your money on too much insurance. You can always add extra policies later on if you need to.
- Shop around for the best rate with an independent agent: Independent agents are great to work with because they are not connected to a particular company. They can show you a wide variety of policies and will not have a bias toward a certain one. They will help you choose the best option based on your needs. As you work with an independent agent, here are some other ways to save:
- Make sure they know as many details about you as possible: This will help them to match you up with the right policy and the right discounts. Some information that you disclose to them might be exactly what they needed in order to get you the best deals.
- Tell them that you are looking for a discount: Independent agents will always work to find a good deal for you. By letting them know that you are looking to save a little extra money, they will put in the effort to find those discounts for you.
- Independent agents may have connections: When an independent agent is aware that you would like a discount, they may be able to work with some of the companies to make this happen. They have connections, but they do want to be careful to avoid showing any bias.
The good news for you is you’re in the right place! We are an independent agency that specializes in getting the best rates for our customers. We shop around with all of the carriers out there to get you the best rate on the market, at no extra cost to you! Give us a call today or use our online life insurance quoter to get a quote.