Ways to Save on Disability Insurance

June 21, 2016admin

disability insurance saving tips

How to Spend Less on Disability Insurance Premiums

The perception of high premiums is one of the main reasons why individuals decide not to purchase disability insurance.  However, protecting a person’s income doesn’t have to cost a fortune. There are many different types of disability insurance and therefore, a wide range of premiums. It’s important to do your research to find the policy that is best suited for you. Take a look at the best ways to save on disability insurance from the experts at ProtectYourIncome.com.

Extend the Elimination Period

The elimination period is the amount of time the policyholder has to wait after they first become disabled, before they receive their first benefits check. Increasing the elimination period will lower the policyholder’s monthly premiums. Individuals should consider how long they would be willing to wait for their benefits if they were to become disabled. An emergency fund or a spouse’s income could help the policyholder wait an extra month or two before their disability benefits kick in.

Shrink the Benefit Period

The benefit period refers to the amount of time the policyholder will receive their disability benefits. The most expensive policies have benefit periods that last until the age of retirement, usually until the age of 65 or 67, while the least expensive policies have benefit periods that last only last 2, 5 or 10 years. If the individual is comfortable with only receiving benefits for a finite amount of time, limiting the benefit period is one of the best ways to save on disability insurance.

Consider a Guaranteed Renewable Policy

Guaranteed renewable policies allow the insurance company to raise premiums at a later date. While the insurance company needs a reasonable cause for raising their customers’ rates, signing up for a guaranteed renewable policy can help consumers save money in the short term.

Redefine Disability

The most important factor when it comes to choosing the right type of disability policy is how the policy defines disability. Any-occupation disability insurance will only pay benefits if the policyholder is unable to work in any occupation. Due to the policy’s stricter return-to-work terms, any-occupation policies are less expensive than own-occupation policies. Most office workers and other traditional jobholders can get by with an any-occupation policy. However, while any-occupation coverage can result in cheaper premiums, own-occupation disability coverage means that you’ll be covered if you’re unable to perform the duties you were trained for. This offers broader coverage, and more peace of mind.

Compare Policies from Different Carriers

With all of these factors in mind, consumers need to compare different insurance policies to see which option will be the most affordable. Websites like ProtectYourIncome.com allow individuals to receive quotes from top-rated insurers. Everyone can save on disability insurance when they have access to the right tools and the correct information.