When you purchase either an individual disability insurance or life insurance policy, you may reuse your paramedical results up to six months after the exam if you purchase the other type of insurance.
Clients often ask me if they should use the same company if they buy the other coverage or if there is a discount. The answer is oftentimes “NO.”
Some companies, typically companies that offer homeowner’s insurance or automobile insurance will offer life insurance through their company at a slightly discounted rate. However, it still pays to shop around since their life insurance rates at those companies tend to be significantly higher than others in the industry.
Since life and disability insurance are different products, it is important to look at them individually.
Term life insurance is easy to compare since the definition for the claim is the same—death. As such, look for a company with at least an A+ rating and that will allow you the option to convert to a permanent product. And, look at COST! The range in cost for term life insurance can be significant. Don’t overpay for term insurance just to be able to keep your policies at the same company.
Some companies that specialize in disability insurance will send out an offer to clients after going through the disability insurance underwriting process allowing them to purchase up to a defined amount without any further underwriting. Don’t be fooled by this. I’ve had clients accept the offer and the company still required additional underwriting and paperwork and they came back with a higher than advertised rate. We eventually withdrew that application, shopped around and found a more suitable term policy at a better rate for the client.
If you purchased a life policy and subsequently want to purchase a disability policy, make sure you find a policy that is suitable to your needs and covers you in your own occupation or medical specialty. I’ve had several clients, including surgeons and dentists ask me to compare individual disability products in our portfolio to the one offered by their auto insurance carrier. Most of the auto carrier’s companies do not specialize in white collar or physician oriented plans. They are more conducive to blue collar professionals. The policy was much more expensive and under delivered in contract language (didn’t cover them in their medical specialty for the full period of time) compared to the policy I recommended for the client.
For more information about purchasing an individual disability or life insurance contract or to request a quote, contact Set for Life Insurance today!