As you go about shopping around and comparing life insurance policies, one of the most important questions to ask providers is if they offer cost-reducing deals, such as discounts. Almost all insurers offer them, seeing as they need the business and making their products easier to afford makes it more attractive to consumers.
Your main priority is to get a policy that not only meets the needs of your household, but also gentle on your pockets. So ask around for the availability of these discounts to reduce your premiums, but not the level of coverage or the payout your loved ones will receive.
Multiple Policy Discount
Almost all companies offer a wide array of products, such as health, home, and car insurance. And because they prefer (not to mention need) their clients to purchase as many policies from them, they give this type of discount to make their offers more appealing. Although terms and rules vary from provider to provider, this money-saver basically reduces your overall insurance costs when you purchase more than one policy from the same seller. For example, you already have a contract with an Oklahoma insurer for a health policy. When you purchase life cover from the same company, you may qualify for lower premiums. The same goes true for shoppers living in Michigan, Tennessee, West Virginia, or any other state.
Multiple Member Discount
Getting insurance for different members of your family from the same company may also render you eligible for this discount. Say you and your spouse both want to obtain life insurance. You may receive lower rates when you buy the separate policies from just one insurer.
Also check if you can get better prices for your life coverage even if your family purchased a different kind of insurance from the same insurer. For example, your spouse bought car insurance from a certain provider. Ask if they will offer a discount even if the life policy will be under your name.
This is arguably one of the biggest cost-minimizers of life insurance expenditures. Although in general, non-smokers already pay much better premiums than those who smoke, you may still get a discount if no one else in your household smokes. Keep in mind that second hand smoke causes numerous health problems, so even if you don’t smoke but someone else in the family does, insurance companies will still consider you high-risk.
Discounts for Health Improvements
There are many factors related to health that insurers take into consideration when calculating premiums. Aside from smoking, they also look at weight.
Being overweight or obese can drastically increase your premiums. Whether you’re still in the shopping process or if you already have a policy, you should do what you can to shed off pounds and maintain a healthy weight. Insurance companies, or your current provider, will reward you with better premiums. Besides, you want to have a better quality of life, and making this change for the better will allow you to do so.
Other Types of Money-Saving Deals
Qualifying for discounts aren’t your only way to trim life insurance costs. There are many other strategies you can implement to enjoy affordable premiums without sacrificing coverage.
Making sure that you don’t overbuy (or underbuy) is one way to achieve this goal. You can do this by establishing an accurate estimate of all your liquefiable assets, as well as the amount of money your surviving members need to cope up with loss of income for a certain period of time. Factor in potential education funds and of course, funeral and burial expenses, and you will have a better, clearer picture of just how much coverage to purchase.