Disability Insurance Articles
How Disability Insurance Premiums Can Vary With Age
2011-08-21
Shopping for disability insurance can be a lot easier when you know what causes the increases in your premium. Age and disability insurance are intimately linked because the chances of one becoming disabled as their age increases is much greater. For this reason, it is always a good idea to get disability insurance as young as possible so that you can lock into a lower range of premiums.
Many factors encompass disability insurance. Age is one of the main ones, however where you live and what you do for a living can be other factors that will be considered when an insurance company calculates the premium that you will pay. Every job and the day to day tasks that you perform are classified under several different tiers within the insurance world. The higher the risks are at your job, the higher the level and thus the higher the premium that you pay.
In addition to the job that you do, the odds of you injuring yourself as you get older are also much higher. A 60 year old has a greater chance of following down the stairs than a 40 year old does. Once a person reaches the age of 65, the premiums will increase significantly because insurance companies know that the likelihood of them paying out on a claim has increased ten-fold.
It is for this reason that many disability insurance policies expire once someone turns 65. Many companies aren't comfortable allowing a customer to keep paying their low premiums once the 65th birthday occurs because accidents are much more prone to happen. Age and disability insurance are a huge consideration when you look to insure yourself.
When you reach the age of 65, there are still disability insurance coverages that you can purchase, however the premiums will be much higher than you once experienced. Your sight may be going, you will be a little frailer and you just aren't as focused as you once were. Insurance companies cannot discriminate against age when it comes to issuing a policy; however they can increase the premiums to ensure that their interests are covered.
It all comes down to deciding to get an insurance policy for the right reasons. If you are older, you will need to consider disability insurance because of your own personal functions. If you are younger, you may want to consider it because of the job that you are at; either way, the younger the better because age does matter.
When you have a policy in place, it can ensure that you have the money for your medical bills and other expenses so that you are not out of pocket due to a debilitating incident.