Like all things in life, technology brings changes to an industry. Maybe you think this is a bad thing, but when it comes to saving money on life insurance premiums, I’m guessing you may embrace this.
Life insurance companies for years have resisted change, and embracing technology. However, over the last couple of years, companies have seen the writing on the wall. They understand that consumers demand change, and have come up with some innovated ways on ow to offer discounts, to consumers.
In this article we are going to highlight a few of the ways life insurance companies are using technology, to help consumers save money on premiums.
Use Activity Tracker Devices
The first type of technology companies embraced, were activity tracking devices. Popular exambles are FitBit’s, and Apple Watches. If a person was willing to share their fitness activities with an insurance company, they could be eligible to receive discounts anywhere from 3% to 9% on their life insurance premiums.
Life insurance companies have determined that if they can view/track a person’s activity, they would be eligible for slight discoutns. This may seem invasive of your privacy, and many consider it is, companies view it as an opportunity to share more about YOU, and your lifestyle to them. If a person is active, exercises, they will be viewed as a ‘lower’ risk to a company.
At first, these discounts may seem ‘small’ and insignificant. However, over a life time of a policy, these discounts amount to thousands of doallrs in savings, on a life insurance policy.
Use Devices to Monitor your Diabetes
Diabetes is one of the most common chronic illnesses, life insurance companies come across. Here are some basic diabetes statistics:
Per the CDC, following were updated statistics for 2018
Total: 30.3 million people have diabetes (9.4% of the US population)
Diagnosed: 23.1 million people
Undiagnosed: 7.2 million people (23.8% of people with diabetes are undiagnosed)
Life insurance companies know that more and more people are becoming diabetic, or pre-diabetic, and are finding ways to offer new premiums. Says Ryan Stanley of Diabetes 365, a life insurance agency who works with diabetics, “For the longest time, life insurance companies didn’t want to embrace the diabetes community. They wanted to turn them down. However, over the past few years, they have finally woken up, and realized they need to help attract people with diabetes to apply for coverage. One of these incentives is to reward people who use diabetes technology, with lower rates on life insurance.”
Certain diabetes devices that help people control their condition include Insulin Pumps, Continuous Glucose Monitoring devices, and diabetes applications such as MySugr. Matt Schmidt, and agent with Diabetes Life Solutions says, ” Certain life insurance carriers will provide lower premiums to people who are embracing technology, to help manage their diabetes. Life insurance rates for diabetics tend to be more expensive to begin with, so any type of discounts, or better offers for the diabetes community is welcomed!”
By comparison, a person with type 1 or type 2 diabetes may see an offer 20% to 25% lower in premiums, compared to a person who isn’t using diabetes related technology. The savings for a just a 10 year term life policy, would be significant. Again, some people may not be in favor of sharing their diabetes data, with these larger institurions, but for those who are open to it, they would be rewarded financially. Life insurance companies claim to only use this information, to see how well your diabetes condition is managed.
Use Running Applications
If you are a runner, like many people are, then you may want to consider to start using applications, to track your activity and progress. Popular applications include Hit the Road, and Run Keeper. If looking to apply for life insurance, and save some money on premiums, certain life insurance carriers will entertain special rates, for the running/jogging community.
It’s one thing to tell a life insurance company that you exercise, but another to prove it. If a person wishes to share their actity thru an application, this will show the companies how active you are.
Companies are looking for how often you run, and for some companies, how fast. If you can run under a 7 minute mile, you may qualify for special rates. For the jogging community who are active, it probably is a good idea to track your activity, especially if you can save money on life insurance, in the process.