Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Oct 21, 2021

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Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from top life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

The Facts of Life

  • Life insurance rebates are illegal in most states
  • Only Florida and California allow life insurance rebates
  • Rebates occur when a life insurance agent offers part or all of their commission back to the insured

The best life insurance companies know that customers want to save money in every way that they can.

Finding life insurance companies that offer low, competitive rates is the best way to save money when discounts and rebates aren’t available.

Finding life insurance companies that allow rebates is almost impossible since only two states allow rebates on life insurance.

If you happen to live in Florida or California, you can shop around for affordable life insurance companies that allow rebates.

Everyone else can still find cheap life insurance rates by comparing multiple companies.

Keep reading to learn about life insurance companies that allow rebates. Before you begin, enter your ZIP code to compare free quotes from life insurance companies near you.

What life insurance companies offer rebates?

Discounts and rebates are used to lure in customers with promises of getting back some of their cash. However, those incentives don’t translate to life insurance.

In fact, life insurance rebates are illegal in most states with the exceptions of Florida and California.

Insurance agents generally charge a commission that is either paid by the consumer or by the insurance company. Life insurance rebates occur when an agent offers part or all of their commission back to the customer.

Each agent can decide if they want to offer a rebate and how much that rebate will be.

Life insurance rebates can be considered discriminatory, since not all customers will receive the same rebate or even be offered a rebate.

Even in Florida and California, most life insurance companies don’t allow rebates because they are not uniformly offered.

The National Association of Insurance Commissioners (NAIC) helps states create insurance rules and laws that protect consumers. The Unfair Trade Practices Act discourages rebates.

However, the rules regarding rebates may be changing. The NAIC is altering its stance on rebates and allowing insurance companies to offer them.

Instead of looking for life insurance companies that give rebates, look for companies that offer low rates to begin with for the most savings.

We can’t compare rates from life insurance companies that allow rebates, but we can show you average rates from some of the top companies.

Average Life Insurance Rates from Top Companies
Insurance CompanyAverage rates single 25-year-old femaleAverage rates single 25-year-old maleAverage rates married 35-year-old femaleAverage rates married 35-year-old maleAverage rates married 45-year-old femaleAverage rates married 45-year-old maleAverage rates married 55-year-old femaleAverage rates married 55-year-old maleAverage rates married 65-year-old femaleAverage rates married 65-year-old male
John Hancock$172.50$178.30$178.30$189.80$241.50$292.10$407.10$533.60$937.30$1,380.00
Lincoln National$187.00$231.00$191.00$238.00$239.00$283.00$435.00$615.00$903.00$1,577.00
MassMutual.$132.00$147.00$137.00$151.00$209.00$230.00$373.00$451.00$763.00$1,049.00
New York Life$158$152$164$160$262$245$414$696$924$1,416
Prudential Financial$195.00$237.00$196.00$248.00$314.00$378.00$496.00$584.00$941.00$1,412.00
State Farm$143.00$164.00$166.00$175.00$238.00$239.00$341.00$396.00$684.00$955.00
Transamerica$164.00$176.00$161.00$171.00$229.00$255.00$453.00$527.00$1,139.00$1,367.00
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You can see that rates vary greatly by company. You should also note that rates are based on your personal information, such as age and medical history.

Comparison shopping helps you find great coverage with low rates. You can compare life insurance quotes online to easily find the best deal for you without rebates.

Can you get rebates with other types of insurance?

Some other types of insurance, such as auto, can offer rebates. However, these rebates are only offered occasionally, and by the insurance company itself, not an agent.

During the COVID-19 pandemic, many auto insurance companies have offered drivers a rebate because mileage was drastically reduced for most drivers.

Auto insurance companies also offer drivers a plethora of discounts that help lower rates. These discounts are based on each driver and are offered across the board to drivers that qualify.

You may sometimes receive a rebate from your health insurance company as well. According to HealthCare.gov, if an insurance company spends less than 80% of its profits on medical costs, it is required to offer a rebate.

Other types of insurance, like homeowners, renters, and travelers insurance, don’t offer customers a rebate.

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How does return of premium term life insurance work?

While technically not a rebate, you can receive money back with a return of premium term policy. However, only a few life insurance companies offer return of premium term life insurance.

Simply put, this type of policy allows the customer to receive back the amount paid for the policy if they outlive the term.

For example, if you purchase this type of policy with a 20-year term, you can receive a refund when the policy expires provided you have made your payments.

Very few life insurance companies offer this type of term policy, and you will typically have to speak with an agent and complete a medical exam during the application process.

Life Insurance Companies That Allow Rebates: The Bottom Line

Life insurance companies that don’t allow rebates are much more common than companies that do. In fact, life insurance rebates are illegal in most states.

You can’t compare quotes from life insurance companies that allow rebates, but that doesn’t mean you can’t find a great deal on life insurance. Shop around to find the lowest life insurance rates for you.

Now that you know about life insurance companies that give rebates, enter your ZIP code to compare free quotes from companies in your area today.