What is the best way to pay for your individual disability insurance?
If you choose to pay monthly, most companies will require that you set up an automatic bank draft. This is the best way to ensure you won’t ever miss a premium payment. The drawback is if you change bank accounts, you need to remember to submit a new form along with a voided check. Some companies charge a surcharge of about 3% over the annual premium to pay monthly.
Annual premiums are generally the least expensive. If you have the cash flow, this is the way to go. You can save between 3-5% over the other premium modes. The down side is if you forget to open your premium notice or to notify the company of your new address, you may miss the payment.
Quarterly and semi-annual payment modes are the least recommended. They are usually the most expensive (3-5% more than annual, depending on the company). Also, people are least likely to budget for a quarterly or semi-annual payment.
The most effective way to pay for an individual disability insurance policy is via monthly bank draft or annually.
For more information about individual disability insurance or to request a quote comparison, contact Set for Life Insurance today!