Disability insurance is one of the most cost effective ways to cover your expenses if you become unable to work. Although it’s also known as disability income protection or disability income insurance by the companies that issue these policies, it is still the same type of policy.
Your Disability Life Insurance Premiums
When you apply for disability life insurance, there are several factors that will influence your premium;
Occupation: The more dangerous your job is, the higher the premium will be. A construction worker will face higher premiums than dental hygienists or beauticians.
Health: If you have a medical history with sickness and operations, the disability insurance carriers will charge more for your policy. They see this as a greater risk that they will have to pay out on the policy.
Benefit Period: How long do you want your recuperation time to be? Although a longer period will be better for your healing, the longer a company has to pay out, the higher the premiums will be.
Elimination Period: This is the amount of time you are injured before a company commences to pay you. Policies have different elimination periods with retroactive periods that will reimburse you to the first day. The longer the period, the cheaper the premium.
Policy Provisions: A policy that pays total and partial disability will cost more than one that pays just for total disability.
Other Disability Life Insurance Riders
There are several more provisions that will affect the cost of your disability life insurance policy. These policies are rated on a person by person status, and explain why two people of the same age and occupation can have varying premiums. Consult your local broker to discuss your options for your disability life insurance.
How Important Is Disability Life Insurance?
How important is it for your monthly income to continue? If you cannot work and do not have disability life insurance, you will have no income from employment after any benefits expire.
Perhaps you have income from investments to cover the shortfall? If so, well and good, so long as do not start eating into the capital.
So Why Not Try To Get Disability Life Insurance?
Great question; why not try and see if you can qualify for disability life insurance?