Disability Insurance Articles
4 Ways To Quickly Lower Disability Insurance Premiums
2010-07-07
Disability insurance pays the policyholder if they cannot work because of an illness or injury. Disability insurance pays you directly to cover monthly expenses when you are no longer able to work. Disability insurance quotes can vary widely. Insurance premiums are based on the features included in the coverage and its terms and conditions.
One way to reduce your premium is to get at least three disability insurance quotes. When comparing the policy, look not only at the price but whether the policy is non-cancelable or guaranteed renewable. Only non-cancelable policies lock in the premium costs. Examine the quotes to see if any optional benefits have been added to the policy such as protection against inflation, benefits for partial disability, or the right to increase your coverage. Each of these add-ons increases the insurance premiums. Unless you have a specific need for these benefits, they can be removed from the policy.
Another way to save is to limit the amount paid out during the disability. The usual amount paid during a disability is 60% to 70% of the monthly salary. Disability benefits are generally tax free. So when you compare the amount of your salary and the disability benefit amount, you may see that the disability benefit will go farther than you expected. You may be able to accept a lower benefit if you take a look at your take home pay and your monthly expenses.
To reduce the cost of your disability insurance premiums you can extend the waiting period. Usually, you must wait a minimum of 30 days while you are disabled for your benefits to begin. You can request that the waiting period be extended to 180 days or more. This is a good option if you have enough savings or low monthly expenses.
An "any occupation" disability policy is less expensive than an "own occupation" policy. For example, if you are a nurse and work in a hospital setting on your feet and you become physically disabled, you may be able to work in another job that is more sedentary. If you can still work, then the disability insurance would not pay any benefits. If you choose an "any occupation" policy, the disability would begin when you cannot work at any job. Collecting on this kind of policy can be difficult because you must prove total disability. Compare the disability insurance premiums of each type of coverage.
Disability insurance can give you the assurance that your income will be protected even if you are ill or injured. By comparing disability insurance quotes and the benefits they offer, you can customize your plan and save on your insurance premiums.