In the past, Commerce was holding just over 30% of the market when it came to auto insurance till 2008 deregulation which encouraged other national companies to start selling auto policies in the state of Massachusetts. Commerce lost more than 4% of its market share since then, and it’s prepared to use its large network of field agents to start offering life insurance, first in Massachusetts and nationwide latter.
What happens when a company launches new product or service in insurance is that offers connected to it usually have some sort of bonus attached to it. This bonus can be in form of higher interest rate on your life policy, additional risk coverage such as higher amounts for injuries, free travel insurance etc.
Since Commerce major field of operations was in non-life sector we could probably see their agents offering additional options connected to it, perhaps bonuses in form of home insurance – maybe a month of free home insurance or lower price for those who purchase their life policy. There are other things companies are prepared to offer when they are newcomers into certain field of work, their loyal customers from auto insurance sector may be offered some bonuses within this sector if they choose to buy life insurance as well.
If you check Commerce’s website you’ll see they already offer life contracts with no medical exam (you most likely won’t be able to include coverage for illness this way), complete online (paperless) application process and decision about your coverage application in minutes. There is also really nice option mentioned at their website – no penalty for early termination. This in other words means – should you choose to cancel your life insurance contract in a first month (or maybe first few months) from some reason the money you’ve paid will be fully refunded. This is certainly an option many of their competitors don’t have at this time and it probably won’t stand forever but is rather a part or their advertising campaigns plan.
There is already bonus of 2% lower car insurance price offer for those who chose to buy MAPFRE life and although it seems unimportant to your yearly savings plan, if you can get it every year (or maybe some other bonuses) your life policy could save you some real money in a long run.
