When it comes to disability insurance discounts, there are a wide variety of differences. It is important to work with an experienced broker who not only has access to these discounts but can help you navigate the differences:
1) Association discounts. These are typically available to members of an association for individual disability insurance policies. If you purchase the policy while you are a member of an association, you may receive a 10-15% discount on the policy, depending on the company and the membership association. Typical association memberships include the AMA American Medical Association and the ADA American Dental Association.
2) Resident discounts. These are available for individual policies on a policy if you purchase the policy while still in medical residency. This may be a 10 to 15% discount on the policy. Keep in mind that this discount is only available on the initial policy you purchase while in residency. Once you leave your employer and increase your insurance, a new policy will be issued for the additional benefit at the non-discounted rates.
3) Multi-Life. These discounts are available if 3 or more people from the same employer apply for a policy. The discount is approximately 15 to 20%. The discount may or may not be unisex (unisex rates reduce costs for women significantly). Multi-life discounts may already be set up through your employer. Find an experienced broker who can either set it up for you or may already have the discounts available.
4) Multi-Life Unisex. This is the most significant type of available discount, especially if you are a woman. Since women pay over 40% more than their male counterparts, a unisex policy erases that discrepancy. In addition to the unisex rate, there is a 20% overall discount. Women end up saving 50-70% and men 15-20%. It is important to make sure that your unisex policy is adjustable. This means that if/when you change employers, your discount will still apply to all new purchases. This will help avoid sticker shock.
5) Unisex Rates. Some unisex rated policies can cost more for men. Also, they are only unisex on the base, original policy. If/when you go to purchase more benefit in the future, that cost may be twice the rate of your original policy.
For more information about discounted policies or to request a quote comparison, contact Set for Life Insurance today!