Disability Insurance–Should I Save Age?
Jun 20, 2015
Jamie Fleischner

Jamie Fleischner

20 Jun, 2015

When you apply for an individual disability insurance policy, the premium is based on your actual age (as opposed to life insurance that ages you on your 1/2 birthday).

What happens if you apply for a policy close to your birthday?

If you apply for coverage and it is approved within 60 days (depending on the company) of your birthday, you can request to “save age.” This means that the policy will be dated the day before your birthday to lock in your age.  Premiums will be due as of this date.

How do you determine if it makes sense to save age? It comes down to the premium. If you save your age, you are required to pay premiums as of that date. If your policy is approved three months after your birthday, you will need to back pay those three months to lock in your age. You need to determine if this extra premium payment is worth the savings of the rate change on your birthday.

Have your broker calculate the difference in cost to determine if it is worthwhile to save your age.

Related Posts

When is it Time to Drop Your Disability Insurance Policy?

When is it Time to Drop Your Disability Insurance Policy?

So much is written about when and how to purchase an individual disability insurance policy. However, little has been written about when to drop the policy. When to buy. It is important to protect your income when you are dependent on your earnings. If you and/or your...

We're here to help

Getting the right disability insurance can be downright confusing. At Set For Life, we'll help you understand the options and work with you to select just the right product for you and your family. These articles will help you understand some of the complexities involved, but we're happy to walk you through it! If you're ready to get set, reach out for a quote today!