When shopping for disability insurance, it is important to work with an independent broker who will shop around on your behalf to show you all of your available options.
If the plans are relatively similar, why then is there such as big difference in premium rates? Is one plan significantly better than others?
There are several major factors that account for the premium differences:
1) Occupational class. Occupational classification is the category used by companies to determine your risk based on your occupation. These can vary greatly from company to company. For example, a CRNA may be the same occupational class as an anesthesiologist with some companies or the same as a nurse with a different company. Even within medical specialties, there is a significant variance. For example, gastroenterologists are considered a surgical specialty by some companies and are considered an even better risk than an internal medicine physician by another. Companies move occupational classes around among medical specialties and occupations often so it is important that you are receiving the most up to date quote with the correct occupational class.
2) Gender. Women pay on average approximately 40% more than their male counterparts for disability insurance. One way to reduce this extra cost is to look for unisex rates and discounts. This can save women significantly.
There are several other factors that will impact rates such as age, state of residence, income, benefit amount, benefit period, etc… but those factors are typically similar across the board.
For more information about disability insurance premiums or to request a personalized quote comparison, contact Set for Life Insurance today!