Disability insurance can offer crucial protection if you have an income. Whether you are the sole beneficiary of your income, or others rely on it too, if you are unable to work due to illness or injury you might be entitled to claim disability insurance benefits.
Although the majority of employers offer disability insurance automatically, it can also be useful to supplement this type of cover with additional policies. However, not everyone understands how to go about shopping for disability insurance. Let’s discover 3 easy steps to help you to get an affordable deal on your disability insurance.
Tailor Your Policy
Although it can be tempting to opt for the first disability policy that you see, there are no guarantees that this type of coverage is right for you. In fact,there are a few tweaks you can make to your policy to create a more affordable deal. For example,when you first go through the underwriting process, your quote is likely to cover your maximum eligible insurance. Although this amount does not typically cover all your pre-disability income, if your monthly expenses are lower than your benefit quote, you might want to settle for a lower benefit.
Applying for a disability insurance quote online while you are young and healthy might not seem obvious, but so many people miss out by not investing in their financial future at the start of their career. Disability insurance policies require medical underwriting,and this can incorporate medical records, blood tests, and physical assessments. To further reduce insurance costs,provided that you can make alternative arrangements,you can eliminate additional riders such as catastrophic disability coverage, cost of living adjustments, own occupation coverage, and residual disability coverage. Above all,if you accept a smaller benefit agreement to lower the cost of your disability insurance, be sure to have savings, investments, or other financial resources in place to cover any gaps in your income.
Consider Lengthening Your Elimination Period
Another change that you can make to your disability insurance policy includes lengthening your elimination period. Put simply, the period of time before you are entitled to claim disability benefitsis called an elimination period. If a person becomes disabled, they must wait until the elimination period is complete before they can receive any benefits. In most cases opting for a longer elimination period can lower your disability insurance premiums.On average, elimination periods usually last for around 90 or 180 days.
If you have modest expenses, or if you have access to other financial reserves like savings or investments, then lengthening the time period for which you would be without income can work in your favour and result in a more affordable disability insurance policy. Additionally, if someone else in your family is able to financially support you, you might also want to consider this option. If you do decide to lengthen your elimination period, then be careful not to rely too heavily on your other financial reserves in case your circumstances change.
Use Short Term Disability Insurance to Supplement Any Gaps in Your Long Term Cover
If you work for a big company or organization, there is a chance that your employer already provides long-term group disability insurance. Long termgroup disability insurance provides workers with a portion of their salary if they are unable to work for a long period. This period usually lasts for over six months. It is however possible to supplement your long term group disability insurance by investing in short term individual disability insurance.
Short term disability insurance policies offer workers a portion of their salary if they are unable to work for a short period. This period usually lasts for three to six months. Although it is possible to settle for long term disability insurance alone, it is beneficial to assess how to make both types of disability insurance work for you. Combining employer provided long term disability insurance with an additional individual short term policy can remedy any gaps or limitations in both policies. Some employer seven allow you to purchase additional short term disability insurance for a small pay check deduction and this can be more affordable than seeking out short term coverage independently.
Ultimately, anyone who earns money should consider buying disability insurance.While it can be tempting to get hung up on the cost, it is undeniable that disability insurance can help you to maintain a positive cash flow in the event an injury or illness takes you out of work on a temporary or long term basis. When safeguarding your future, remember to shop around to find the best coverage for your unique budget and needs.Are you currently unable to work due to a disability? Check out this useful guide to handling your personal finances when living with a disability.