What is a life insurance discount?

Life insurance discounts can help you save money when shopping for the life insurance coverage you need. The four major types of life insurance discounts include safety discounts, bundling discounts, group and membership discounts, and loyalty discounts. Ask your employer, friends and family, or an insurance agent for help finding discounts for you.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Aug 13, 2021

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Things to Know

  • Some car insurance companies provide life insurance discounts, or multi-policy discounts, for customers who have a life and car insurance policy from the same company
  • In most cases, however, a life insurance discount refers to savings on life insurance for customers that meet certain qualifications
  • The major types of life insurance discounts include safety discounts, bundling discounts, group or membership discounts, and loyalty discounts
  • The easiest way to start learning about life insurance discounts is to ask your employer, friends and family, and an insurance agent

Some car insurance companies may offer savings for policyholders that also hold life insurance, especially if the policies are through the same company.

Similar to car insurance, discounts can also be applied to life insurance to help you save money. However, lots of life insurance companies don’t advertise the discounts they offer. Therefore, you have to know where to look and what could earn you a discount.

Read more below about life insurance discounts and how to get them. Compare life insurance quotes for free by entering your ZIP code into our quote comparison tool above.

How can I save money on car insurance with a life insurance discount?

In some cases, there are a few car insurance companies that provide savings for policyholders who also have a life insurance policy.

If this is an option, it is most often known as a multi-policy discount, which gives savings for customers who have multiple types of insurance policies through the same company.

Therefore, if you have a life insurance policy and a car insurance policy through the same company, you may qualify for a discount on both policies.

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What is a life insurance discount?

While a life insurance discount may be available for savings on car insurance, life insurance discounts are most often a way to save on your life insurance rates.

The life insurance company will evaluate you based on many different factors to see how likely it is that you’ll die early. The less likely, the more you’ll qualify for lower rates and discounts.

A few life insurance discounts act more like coupons, but most of them take into account factors such as your age, health, and lifestyle.

What kinds of life insurance discounts are available?

The policy-based life insurance discounts that are available to you will vary by company. The four major categories of life insurance discounts are safety discounts, bundling policies, group or membership discounts, and loyalty discounts.

Safety discounts are given to people who take care of themselves. The company may reduce your rates if you don’t smoke, consume alcohol moderately, or exercise regularly. However, these may not be explicit; they may just be worked into your rates without you knowing.

Bundling discounts occur when you have more than one insurance policy with the same company. If you purchase life insurance from your car insurance company, they may reduce your rates for both policies. Depending on the company, bundling can save you between 5%-15%.

Group or membership discounts are given to those who belong to certain groups or professions. Common group discounts include military discounts, teacher discounts, and government employee discounts.

If you work in a dangerous occupation, you may want to ask your employer about life insurance deals, or you may end up paying higher rates.

Loyalty discounts provide savings for customers who stay with the same company for a long time. Some companies may also give you a discount for getting higher coverage amounts.

How can I get a life insurance discount?

When referring to a multi-policy discount, this is easy to qualify for. All you must do is purchase more than one type of insurance policy from a company that allows bundling.

The easiest way to start learning about life insurance discounts is to ask your employer, your friends and family, and an insurance agent. Your employer may have access to group coverage, while friends and family will have personal experience with a company.

Life insurance agents can give you a lot of policy and company information, and they can find a policy that meets your specific needs.

You should ask about the discounts given for higher coverage amounts since you might pay less for more coverage. However, balance this with a realistic view of how much coverage you need.

When you buy life insurance, you may also want to pay your premiums annually instead of monthly since this could save you money in the long run.

It’s not hard to get life insurance or life insurance discounts, or multi-policy discounts that could also help you save on car insurance. We hope you find our tips on saving money on car and life insurance useful.

If you’re looking for affordable life insurance discounts for car insurance, enter your ZIP code into our quote comparison tool to compare quotes on car insurance for free.

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