MassMutual (Massachusetts Mutual) announced they will now offer graded disability insurance premium rates. Graded rates are initially about 40% than the fixed premium rates and increasin e gradually each year. People who start with a graded premium can later change to a fixed premium on their policy anniversary. The premium at that time will be based on their attained age.
Graded rates are attractive to young professionals who are starting their careers and are looking to purchase a policy without the big price tag. Young professionals who can benefit from the graded rates include: physicians, medical residents, medical students, dentists, dental students, veterinarians, law students, attorneys, accountants, pharmacists, business owners, optometrists, CRNAs, consultants and young executives.
Purchasing an individual disability policy when you are a young professional is crucial because you are typically more healthy which makes disability insurance easier to acquire. Furthermore, young professionals tend to carry a lot of student loans which would not go away in the event of a disability.
Make sure your policy has the ability to increase in the future without further medical underwriting. This will allow you to purchase more benefit in the future even if you have had an adverse change in health.
MassMutual is not the only company offering graded premium rates. Guardian offers graded premiums as well. Other companies that offer “step” premiums which are initially less expensive and later increase include MetLife and Ameritas (formerly Union Central).
Graded premiums are on a schedule which is part of the policy. The company cannot change the schedule or increase premiums at a later time as it is fixed from the start.
For more information about disability insurance for young professionals, about graded premiums or to request a personalized quote comparison, contact Set for Life Insurance today!