Can I Negotiate My Burial Insurance Premium?

When the economy takes a downward spiral, all of us are affected. It’s easy to believe that all of the effects of an economic downturn are negative. However, there can be some positive changes that take place.

One of the things I’ve noticed with our most recent economic downturn is that people have become more price conscious. People are paying attention to how they spend money and attempting to cut costs wherever possible.

A lot of families are buying used clothing for their children instead of paying for brand new clothes. Consignment sales companies have popped up to facilitate this situation. Instead of buying a new car, some people have decided to buy a used car or to repair their current car to make it last longer.

People who are buying new items attempt to negotiate before purchasing. We’ve seen this type of negotiation carry over into the burial insurance market. Oftentimes our clients ask us, “Can I negotiate my burial insurance premiums?” They want to know if the policy would be cheaper if they purchased it directly from the insurance company rather than using an agent or broker.

Fortunately, in the life insurance industry, there are laws prohibiting price variations based on where a policy is purchased. By law, life insurance premiums are fixed, meaning that the price of the same policy from the same insurance company has to be identical across the board, regardless of where the policy is purchased.

That being said, there are still ways to save money when purchasing a burial insurance policy.  Let’s take a look at the three most common ways.

The first way an individual can save money on a burial policy is by providing a more detailed health history. It’s not uncommon for policies to have loose restrictions regarding health history. Oftentimes, the insurance company simply asks a series of questions pertaining to significant health complications within the last 24 to 36 months. This is great as it allows more individuals to be eligible for a senior life policy.

However, if you’re healthier than the average individual in your age bracket, you might benefit from purchasing a policy that asks more health questions and requires a paramedical exam. By gathering more details, the insurance company is able to confirm the health risk, and in turn they can offer a similar policy at a lower cost.

The second way an individual can save money on a burial policy is to be specific about the required face amount. Since most small whole life insurance policies are purchased for the purpose of burial insurance or final expense cost, the most common policy size is around $10,000. Not every individual needs that much coverage, but most consumers do not realize that some companies will offer policies as small as $3,000. Companies also offer coverage as high as $50,000, depending on the needs of the individual. The lower the face amount of the policy you’re purchasing, the lower the monthly premium. So an individual who only needs $7,000 to cover burial cost can purchase a $7,000 policy.

By doing your research, you can purchase a policy that fits within your budget. I always tell clients that the best policy to purchase is the one you’re comfortable paying for.

The third way an individual can save money on a senior life insurance policy is to consult with a senior life insurance specialist. Many individuals avoid agents when purchasing an insurance policy because they don’t want to be pressured or sold a product. However, agencies like ours focus on educating the client on the available options rather than pushing the client into a certain option.

By consulting with the right agent, you can gain an understanding of the products you’re eligible for and what products could save you the most money. Also, an agent can shop your needs among companies to find the best fit for you. If you do feel pressure in the buying process, remember that it’s your right to walk away.

By law, you cannot negotiate your life insurance premiums. However, there are ways you can save money when purchasing life insurance.

If you have questions or would like to speak with one of our licensed agents to find out what policies might be right for you, feel free to call us at 866-699-1884. We are licensed in most states and would be glad to help in any way that we can.