Disability Insurance: Buy Before You Move?
When you purchase an individual disability insurance policy, the parameters are based on where you are at the time of application. This includes state of residence (where you live), income, occupation and group benefits in force.
If you are preparing to move, it is important to evaluate your situation to determine if it is best to purchase before or after you move.
For example, I had a call from a female orthopedic surgeon who currently lives in Boston working for a large university. She is considering moving to Texas to work for a private group. We discussed her situation in depth to determine the best course of action.
If she were to purchase her policy while still in Boston, she would be eligible for discounts that are already set up through Set for Life. This would save her between 55-70% on her premiums. Since she has a group policy in force, she could purchase a supplemental policy while in Massachusetts and lock in the discounted rate. When she later moves to Texas and loses her group coverage, she can simply increase her benefits, at the discount rate without any medical underwriting.
If she were to wait to purchase her policy while in Texas, she would pay significantly more or for the same coverage.
In another situation, I had a graduating surgical medical resident in Wisconsin who was considering moving to California. By purchasing the policy while still in residency, she was better off taking advantage of the discounted rates and later increasing her benefits. Furthermore, if she were to wait until she was in California, she would not have the same policy options and the policies tend to be more expensive.
For more information about purchasing an individual disability policy prior to moving, contact Set for Life Insurance today!