Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Nov 30, 2021

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The Truth in a Nutshell

  • Life insurance rebates are a portion of an agent’s commission given to the customer as an incentive to buy a policy
  • Only two states, California and Florida, allow insurance rebates
  • It is illegal for insurance companies to give rebates

Buying life insurance can be complicated, not to mention expensive. Since there are so many options out there, some insurance agents employ lots of methods to get people to buy life insurance from them. A rebate is one of those methods.

It sounds like a good deal, as the agent who sells you the insurance applies their commission to your policy or gives you the cash value back. Before you make a decision, however, it’s best to have all the facts.

You need to know if the agent is upfront with you and if rebates are legal in your state, how much life insurance costs, plus whether the policy you’re being sold is the best choice for your personal circumstances. This guide will tell you everything you need to know about life insurance companies that allow rebates.

While you can’t find rates from life insurance companies that allow rebates, you can compare rates from other companies by entering your ZIP code into our free tool.

Life Insurance Companies That Give Rebates

It’s not possible to buy life insurance from companies that allow rebates since only insurance agents can legally give rebates. Before buying from an agent, you should ask, is your insurance agent working for you or their commission?

As some agents can only sell insurance policies from certain companies, you may not be getting the best deal. To find life insurance companies that are the right fit for you, you should compare quotes online.

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How much will life insurance cost me without a rebate?

The amount you would normally pay for life insurance depends on a number of factors that are personal to you, like age, gender, and whether you smoke. It should come as no surprise that the younger and healthier you are, the lower your insurance rates will be.

As an example, a 30-year-old woman could pay around $20 a month, while a 55-year-old man could pay around $80 a month.

Here are some average monthly term life insurance rates by age and amount of coverage.

Average Monthly 20-Year Term Life Insurance Rates by Age and Gender
Term Life Insurance Policyholder Age$100,000: Male Average Term Life Monthly Rates$100,000: Female Average Term Life Monthly Rates$250,000: Male Average Term Life Monthly Rates$250,000: Female Average Term Life Monthly Rates$500,000: Male Average Term Life Monthly Rates$500,000: Female Average Term Life Monthly Rates
25$14.53$12.70$23.27$18.72$34.79$27.39
30$14.96$13.22$24.59$20.44$37.39$29.59
35$17.57$15.40$26.09$22.19$40.04$32.19
40$21.40$18.62$33.72$28.49$54.79$45.69
45$26.54$22.97$45.47$37.42$79.19$66.14
50$36.02$29.32$69.59$54.59$126.14$96.99
55$50.98$38.11$105.72$78.97$203.14$143.99
60$84.91$60.20$183.79$131.17$355.39$248.84
65$144.51$97.44$323.42$220.99$625.09$432.84
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As you can see, the amount of coverage also affects the life insurance rate you’ll pay. So think hard about how much coverage you really need. A $500,000 policy may not be necessary, for example, if you don’t have any dependents or not much debt.

Can I get a discount on life insurance?

Whether you get a rebate or not, you can still get cheaper life insurance by taking advantage of discounts. Life insurance companies may not always inform you of these, so you should do your research and find out the different kinds available.

For example, most employers will be happy to enroll you in a group life insurance plan. Since this plan covers multiple people in a company, it means you benefit from a discounted rate.

There are life insurance discounts based on how healthy you are as well. An insurance company will see you as less of a risk if you qualify under certain lifestyle categories.

There’s a non-smokers discount, and even an exercise discount. Life insurance companies also give better rates to people who are married or who own a home.

If you’re a member of a professional organization, you are probably eligible for a discount.

People in certain professions, like teaching or nursing, are commonly given a discount. Insurance companies like USAA provide affordable life insurance to military veterans and their families.

What are the life insurance rebates laws in my state?

All states except California and Florida have some kind of anti-rebating law. It’s important to know that it is still illegal in both of these states for an insurance company to give rebates. The law allows insurance agents to offer rebates, however.

In Florida, the law allows rebates only if they are available to all potential customers equally. This means the agent has to disclose the rebate to all possible buyers.

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Life Insurance Companies That Allow Rebates: The Bottom Line

Hopefully, this guide will have told you everything you need to know about how to buy life insurance from companies that allow rebates.

Though you can’t find affordable life insurance companies that allow rebates, you can get quotes from the top life insurance companies by entering your ZIP code into our free tool right now.

Frequently Asked Questions: Life Insurance Companies That Allow Rebates

Have more questions about life insurance companies that allow rebates? Keep reading.

#1 – What is a life insurance rebate?

An insurance rebate means the agent or broker who sells the insurance gives the insured person some of the money the agent makes on their commission.

#2 – Are there life insurance companies that don’t allow rebates?

Yes, some states, in fact, specifically prohibit life insurance companies from allowing rebates on their policies.

#3 – Which states allow insurance rebates?

There are only two states in the country that allow life insurance rebates. These are California and Florida.