The annual premium for a standard life insurance policy can range from around $132 to $9,696 or more, depending on the insured’s age, gender, policy’s term length, coverage amount, and other considerations. Finding methods to reduce the cost, however, is an objective shared by all parties. Here’s the scoop on how to get a cheaper life insurance quote, if you’ve ever wondered about that.
Can life insurance premiums be bargained?
Life insurance premiums are not open for discussion. The insurer employs a formula to calculate the stated price based on the risk involved and the estimated expenses of supplying your coverage. That being said, even if you have a cheaper quotation from a rival to use as leverage, merely asking for a lower price is unlikely to produce results.
But it doesn’t mean you can’t negotiate a better rate by changing at least some of the parameters on the table. The premiums you pay for life insurance can be lowered by making changes to the policy’s many customizable features. If the price quoted is too high, you may be able to get the insurance tailored to better fit your needs at a lower cost.
Is there anything else you can do to reduce the fees?
Finding affordable life insurance may be done in numerous different ways. Taking measures to reduce your risk as a policyholder is one possibility. Typically, this entails making changes to reduce health risks and boost vitality. It’s a good idea to kick the habit before applying for life insurance, as smokers often spend 215% more than non-smokers of the same age and gender with identical characteristics.
Otherwise, you might try to get discounts on life insurance. Insurance providers may provide different discounts, but in general, shoppers may choose from a variety of savings opportunities.
Common Forms of Price Reductions
Discounts on life insurance policies may be found in a few different categories. It’s possible to save money by purchasing many policies from the same provider. It’s possible to save money on your annual premium by paying it all at once rather than spreading it out over 12 monthly installments.
Associational discounts are available in some circumstances. Being a member of a specialized profession, working for a specific company, or a specific group—like the AARP—that negotiates for cheaper prices on behalf of its members can all help.
In certain cases, savings for leading a healthy lifestyle may have already been factored into the original estimate. In this section, you’ll find discounts for things like not smoking, keeping a regular exercise routine, and getting married.
When a policyholder stays with the same life insurance company, they may be eligible for a loyalty discount. The discount isn’t immediately available, but knowing it’s there will help you remember to ask for it if you’re eligible.
Finally, signing up for automated payments or going paperless might reduce the cost of your coverage. Even though these reductions are often modest, they can have a significant impact on your life insurance premium costs over time.
