Despite the fact that many people simply don’t care about life insurance or think it’s important, this category of products is an essential component of an overall financial portfolio and should be part of your long term strategy in terms of retirement and emergency planning. Why are they not more openly discussed or prevalent? Most of these products are boring and quite depressing, frankly, since they force you to anticipate disastrous scenarios and to devise a remediation plan to support your loved ones. Did you just say “yes” to your long-term boyfriend or girlfriend? Or have a baby on the way? The minute someone depends on you for their financial stability is the time to seriously start considering life insurance. If you need an incentive to get on top of this, you should know that unsurprisingly enough, the younger and the healthier you are, the cheaper life insurance is. On top of this obvious point, there are several other ways to get a discount on life insurance.
Life Insurance Discounts: What Are They?
When you’re signing up for life insurance — or any type of insurance, for that matter — you’re agreeing to pay premiums, which are periodic (usually monthly, quarterly or yearly) payments. In exchange, you get the (reasonable) assurance that your beneficiaries will receive a predetermined payout should you fall into bad times, temporary of otherwise. Life insurance discounts are simply an easy way to lower these periodic payments in order to get the best bang for your buck. Obviously, they don’t exactly work like traditional coupons, but rather like a puzzle used by insurance companies to assess the likelihood that you’ll meet your maker in an untimely fashion. Simply put, the less likely it is, the cheaper your premiums will be, which is the basic premise of this whole calculation. Of course, it will also depend on the type of life insurance you choose (whole life or term), the coverage you want and the specific product you pick, but regardless of these elements, there are some ways to save you some money down the line.
What Are the Main Types of Discounts?
Let’s begin by stating that it would be impossible to list the entirety of life insurance discounts that are out there since they are too many. That being said, they can pretty much all be classified into one of the following categories:
- Safety discounts:
Safety discounts are rebates that you can get if the insurance company sees that you’re going the extra mile to take care of your body. If you weren’t already convinced that hitting the gym or the treadmill a couple of times a week was a good idea, take the hint! Safety discounts typically go to people who don’t smoke, eat junk food, drink (or just in moderation), and people who have an overall healthy lifestyle. You may also get safety discounts for less-than-obvious reasons. For example, all other things being equal, married people tend to pay lower premiums since they also live longer on average. That’s another good reason to settle down!
- Group discounts:
Certain professions and associations provide their people /members with specific discounts that can be extremely beneficial. The most common group discounts are those enjoyed by teachers, military members, government employees or public employees in general. If you work in a dangerous environment, you should definitely check with your employer if there are special deals and benefits you can qualify for. It’s usually stated up front, but it doesn’t hurt to ask.
- Bundling discounts:
Bundling discounts are a way for insurance companies to reward their best customers, meaning people who are currently paying them for several products. The most common bundle is car, home and life insurance, but most insurance companies try to entice their customers to buy more products by offering all sorts of combinations.
- Loyalty discounts:
Loyalty discounts have the same purpose than bundle’s, but instead of rewarding the quantity of products bought by the same customer, they offer a discount based on the longevity of the business relationship. Another area where being faithful matters!
You want to get more information about life? Contact Emma – La Meilleure Assurance Vie en Ligne and ask them what they can do for you today!