Shopping for an individual disability insurance policy can be be complicated and overwhelming. Policy provisions and premiums vary from company to company. It is important to prioritize what is important to you and how much would be needed if you were unable to work. When shopping, keep in mind the following:
What to Look for in a Disability Insurance Policy
Eligibility/Income and Participation Limits
There is maximum amount of disability insurance you are eligible for based on your income and the amount of other group or individual disability benefit you have in force.
Choose Riders Carefully
Riders are benefits that are added on to the policy. Prioritize which riders are most important to you. The policy illustration should list the individual rider cost for each policy.
Look for Available Discounts
Discounts range from 15-55%. Set For Life Insurance has numerous discounts set up around the country. Be sure to tell us where you work or if you are a member of an association and we can determine if a discount is already in place.
Look at Company Ratings
It is important to look closely at a company’s financial ratings by 3rd party services. We prefer to work with companies that have an A+ or A++ rating by AM Best to ensure quality and stability.
Look at the Overall Picture
The cost of disability insurance is important. However, disability insurance is a complex product and there are variations from policy to policy. Least expensive does not always mean the best fit for your situation.
Work with a Broker Who Specializes in Disability Insurance
Working with a broker provides you with an objective perspective since they do not work for any particular company. Brokers work on your behalf, not the company’s. Furthermore, brokers can represent multiple companies. If you work with an agent of a company, they will most likely only show you one company (the one on their business card) that may or may not be the best fit for you. Furthermore, disability insurance can be very complex. Be sure to work with someone who really knows this area of insurance.
Consider a Simplified Underwriting Plan
Disability insurance underwriting can be complicated. But it doesn’t have to be. If you are looking to purchase a policy with less than $5,000/month benefit and don’t have any major health conditions, you may want to consider a simplified underwriting plan.
With simplified insurance underwriting, you don’t have to provide documentation of your income, there are no medical exams, physician statements or medical records and you don’t have to provide a personal history interview!
What is included?
- Up to $5000/month benefit (depending on company).
- Own occupation definition of disability.
- Increase options in some circumstances.
- Available to ages 18-60.
- Available to most occupational classes.
- All waiting and benefit periods available.
Please contact the Set for Life Insurance office today for more information.