Disability Insurance can be very expensive. Rates are based on several factors:
- · Gender. Women pay approximately 40% more in premiums than men.
- · Occupation. Higher risk occupations will pay more in premiums. For instance, a surgeon is considered higher risk than a pediatrician. The most favorable occupations in terms of risk include attorneys, CPAs, architects and engineers.
- · Benefit amount. The higher the monthly benefit amount, the higher the premium.
- · Age. The older you are when you purchase your policy, the more expensive your policy.
- · Health. Disability insurance underwriters look at your overall health and risk factors. Some conditions may increase your premiums.
- · Riders and benefit period. Your policy is composed of riders and each carries a price. This includes the residual rider (partial disability rider), cost of living rider and increase options.
With all of the variations in mind, disability insurance can carry a hefty price tag. As a result, if available, look for disability insurance discounts. These discounts can save you anywhere from 15-55%. The discounts tend to be steeper for women as their rates are more expensive to begin with.
Be sure these discounts are permanent. Some companies offer discounts on the original policy and subsequent increases are at a non-discounted rate which can be shocking when you decide to increase your coverage.
For more information about individual disability insurance and available discounts, contact Set for Life Insurance today.