Everyone knows that home and auto insurance costs have been rising. With home repairs, auto repairs, and lawsuits becoming more expensive, it’s inevitable that insurance prices would follow suit.
Meanwhile, life insurance prices have been dropping, but not many people are talking about it. Why? Because most people don’t enjoy discussing topics like death, mortality, or life insurance! Life insurance agents are the subject of more jokes online than any other type of insurance. It’s tough to get someone in the mood to discuss life insurance!
Here’s an interesting benefit: as home and auto insurance costs rise, the dollar amount of savings for “bundling” your policies get larger. Some companies, like Frankenmuth Insurance and Auto-Owners, offer multi-policy discounts on home and auto insurance when you bundle with life insurance. These discounts have increased alongside home and auto insurance costs. For example, if your home and auto policies used to cost $3,000 annually, a 5% life insurance discount would lower your costs by $150. Now, if your policies cost $4,000, that same 5% discount lowers your costs by $200.
With life insurance costs decreasing, that $200 can buy more life coverage than it used to. In some cases, you might even be able to buy a small life insurance policy for less than the discount you’re receiving, meaning you come out ahead on costs and gain life insurance coverage you didn’t have before!
We know that having young drivers on our auto policy can increase our auto policy costs. Yet life insurance typically costs less for younger people. If you’re adding a young driver to your auto policy with Frankenmuth or Auto-Owners, check out the discount from bundling life insurance for the young driver. You might be surprised how it works out.
With insurance prices rising, it makes sense to explore ways to save. The life insurance bundling concept could be a smart option for many of you. And even if you’re not with Frankenmuth or Auto-Owners, now is a good time to consider picking up a small term life policy for yourself or your spouse. It’s also a good time for a good conversation with your insurance agent about how these pieces all fit together for you!
