How to Get a Life Insurance Discount

Life insurance discounts can save you up to 15% on life insurance rates. Discounts are offered for individuals with healthy lifestyles, certain careers, memberships in various groups, and active members of the U.S. military. Life insurance companies don’t always offer discounts upfront, so be sure about which life insurance discounts you qualify for.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jun 30, 2021

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Things to Remember

  • Buying a life insurance policy from the company where you insure your car may earn you a discount on both policies
  • Group and professional organization memberships, including AARP,  may qualify you for a life insurance discount.
  • Living a healthy lifestyle can qualify you for a life insurance discount of up to 15%.
  • Life insurance companies do not always offer discounts upfront, so ask about which available discounts you may qualify for.

Life insurance helps protect your family and loved ones in the event you pass away. Life insurance will help cover any mortgage payments, college tuition payments, and end-of-life expenses.

You can get auto insurance discounts by asking your auto insurance carrier for them, and the same applies to life insurance rates. There is often a discount on your car insurance for bundling a life insurance policy with the same company. What you might not know is you can get a variety of life insurance discounts to help save you money on your life insurance rates.

Some discounts can help you save 10% to 15% on your life insurance rates, others might save you more depending on your individual health and life situation. In general, the healthier you are, the better your rates will be.

Find out everything you need to know about how to get life insurance discounts below. Enter your ZIP code now to get free affordable life insurance discount quotes from the best companies in your area.

Can you get a life insurance discount on your auto insurance?

When you buy a life insurance policy from the same company where your car is insured, you may qualify for a bundling discount. In fact, in some cases, you might save enough to almost pay for the life insurance policy.

The more policies you bundle with a company, the larger the discount is overall. Large companies will offer discounts for bundling auto, home, life, and sometimes even specialty policies like boat insurance. 

Make sure to ask if there’s a life insurance bundling discount for your auto insurance policy. Read on to learn more about discounts on life insurance policies and bundling discount amounts.

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What are some ways to get a life insurance discount?

Many discounts on life insurance are not publicized and it is important to ask your life insurance provider if you are eligible to receive a life insurance discount.

Discounts are generally offered for:

  • Bundling
  • Healthy lifestyle choices
  • Being an active member of the U.S. military
  • Having membership in different organizations

Keep reading to learn more details about how these qualifications get discount life insurance rates.

What are the benefits of insurance bundling?

If you hold multiple policies such as life insurance, homeowners insurance, and auto insurance with one insurance carrier, it’s called insurance bundling. Bundling with one company can save you up to 15% if you ask for a package rate.

Bundle the auto insurance with life insurance and another policy to earn a discount and gain some savings on life insurance rates. If you hold an auto insurance policy with one carrier, but find you can bundle it in with life insurance and another type of policy with another provider, you can cancel your auto insurance.

Some companies that you typically associate with auto insurance, also offer life insurance. For example, GEICO auto insurance is well known for its car insurance coverage, but GEICO life insurance products are also available.

Can healthy life habits get you life insurance discounts?

Being healthy reduces a life insurance carrier’s risk, so they can pass the savings on to you.

Non-smokers or people who haven’t smoked or used tobacco products within a few years of applying for life insurance can earn discounts of 10% or more on their life insurance policies.

Regular exercise also helps qualify you for discounts as it helps keep you healthy. Life insurance rate tables are very tightly defined.

Only between 10% to 20% of people applying for life insurance qualify for the best rate and those are the healthiest people. Be sure to ask for discounts if you are in good health.

There is a 25% price difference between every class of life insurance customers. Losing five to ten pounds while also lowering your blood pressure can help qualify you for the best insurance rates, saving you 25% or more, depending on which insurance class you land in.

Your lifestyle matters too. If you engage in high-risk hobbies such as skydiving or mountain climbing, your life insurance rates will be high.

Not doing those activities won’t save you money, but if you stop doing these high-risk hobbies, let your insurance carrier know as you will be eligible for a big discount.

Believe it or not, being married can also help you gain a life insurance discount since married people live longer on average than singles. Be sure to tell your life insurance company of your marital status when applying.

Do members of the U.S. military qualify for life insurance discounts?

Many insurance carriers offer life insurance discounts to members of the active military and their families. If you are an active service member in the U.S. military, ask your life insurance provider for a discount.

USAA insurance offers all types of insurance specifically for active-duty military members, veterans, and their families.

However, USAA life insurance products are available to everyone, whether they are in the military or not. Most of their term and whole life policies are available nationwide.

Are there life insurance discounts for being a member of an organization?

You can receive life insurance discounts if you have membership in a group or organization such as AARP. Depending upon the group you are a member of will determine the amount of discount you can receive.

If you are a member of professional organizations, ask your insurance carrier if they offer discounts for that organization or membership.

Many insurance carriers offer discounts to teachers working in education.  Sometimes, students are also eligible for discounts. If you’re a professional educator, ask for that discount to save 10%.

Is it cheaper to buy group or individual life insurance?

Some employers offer life insurance as part of their benefits package, but usually, you buy life insurance as an individual.

The Insurance Information Institute recommends an employer-sponsored life insurance program, even if you have to pay for it. Employers often subsidize their group insurance costs, so it can be less expensive to purchase life insurance this way, providing you with a life insurance discount.

Be sure to compare group and individual rates.  Based on age and health status, individual life insurance rates might be cheaper.

Are there life insurance discounts for lump-sum payments?

Another way to approach a life insurance discount is to ask your life insurance carrier if they will give a discount for paying the entire premium at once. Most carriers allow you to pay monthly, quarterly, semi-annually, or yearly.

Paying for life insurance any way other than in one lump sum usually adds a surcharge to the cost. Ask for a discount if you pay with one lump sum payment.

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How to Get a Life Insurance Discount

There are a variety of life insurance discounts that you can receive if you ask for them.

Shop around every year to ensure you get the best life insurance discount rates. When you get quotes, ask your insurance company to match the best prices you find. Remember to ask about the benefits of bundling to save up to 15% with a life insurance discount company.

When you buy discount life insurance, remember discounts can be applied if you qualify and ask for them. To find the best life insurance discounts, enter your ZIP code for free quotes from top insurance companies.

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