When you request a disability insurance quote from Set for Life Insurance, you will receive a customized quote comparison from multiple companies. The comparison will show all of the riders included and the pricing.

If you request quotes from multiple agents or brokers, how can you tell the difference? Why is there variability between different agents?

It is important to pay attention to the details to ensure you are actually comparing apples to apples. Sometimes agents/brokers will misquote their illustrations to appear more competitive.

It is important to be aware of the following components of a quote.

1. Monthly benefit. The first thing to compare is the monthly benefit as this will impact the overall quote. If these vary, it is important to line them up the same. The rates are linear so if you receive multiple quotes, you can calculate the correct amount.
2. Occupational class. Companies classify each profession or medical specialty in an occupational class which will impact rates. The higher the number, the lower the premium. Attorneys, for example, are a 6A which is the most favorable. Sometimes agents and brokers miscalculate the occupational class and this impacts the rates. For example, if you are an interventional radiologist, you will be classified a surgical specialty. If you are a diagnostic radiologist, you will be classified as a non-surgical specialty. The variability in quotes can be as much as 15%. Make sure you were quoted correctly.
3. Discounts. Set for Life Insurance has discounts available nationwide at most hospitals, various associations such as the AMA and ABA and resident discounts. These discounts vary from 5-15% which can be the reason why the rates vary.
4. Residual/Partial Disability Rider. The residual rider pays benefits if you are still working in your occupation but with a loss of income. Residual riders can vary from policy to policy and can also vary within a company. There are basic, enhanced and enhanced plus residual riders which can cause changes in premiums.
5. Mental/Nervous Limitation. Some policies allow you to add a mental limitation which reduces the premium by 10-15%. This means that if you have a claim related to a psychological disorder it would only pay benefits up to 24 months. This is required on policies for emergency physicians, anesthesiologists, CRNAs and dentists.
6. Elimination Period. This is how long you must wait until the benefits are paid. The longer the elimination period, the lower the premium. Typically policies have a 90 day or 180 day elimination period. When comparing quotes, make sure they all line up with the same elimination period.
7. Benefit Period. This is how long the benefits will pay if you are on claim. This is typically to age 65 or 67. Be sure your quotes line up with the same benefit period to compare properly.
8. Noncancellable/Guaranteed Renewable. This means that the premiums are locked in and guaranteed for the life of the policy. If your policy is only guaranteed renewable, the rates are not guaranteed! We have seen agents set up their quotes this way to reduce the premium. However, you may be blindsided in the future with a big rate increase!
9. Graded/Level premiums. Graded premiums gradually increase and level premiums are fixed and guaranteed for the life of the contract. To compare policies properly, it is important to compare level rates.
10. Future Increase Options/Benefit Increase. Future increase options are a pool of avaialble options that you may exercise to increase your policy on an annual basis. These cost money. A benefit increase rider is a no cost rider that allows you to increase your policy every 3 years. It is important that the same type of rider is shown on all illustrations.

It is important to work with an experienced broker who can help you find the most suitable policy at the best price in the most objective manner available.

For more information or to request a disability insurance quote comparison, contact Set for Life Insurance today!