How to Buy the Cheapest Disability Insurance

Temporary or permanent disability can severely compromise your ability to maintain a comfortable living when faced with the financial constraints due to possible income loss. Disability may result from an accident or due to a pre-existing or sudden medical condition. Disability insurance can often be a lifesaver in such cases. Here is how you can shop for the cheapest disability insurance.

Instructions

Difficulty: Moderate

1. Assess your current earnings and future income. If you believe your family depends on a single income, then you need to seriously consider buying the best available disability coverage.
2. Check with your employer before looking for private insurance providers. If your employer does not have a cheaper option, then consider taking membership of a professional organization in your field. Usually such associations offer insurance, including disability insurance coverage, as one of their benefits. For instance, if you are in the education sector, becoming a member of the National Education Association may help you get cheaper coverage (among their other usual benefits).
3. Choose traditional Group coverage (from your employer) or Voluntary Group coverage (taken on your own) over the Individual Disability Income insurance. The Individual Disability policy would have a higher premium compared to any group coverage.
4. Understand the premium determining factors for disability coverage. Age, occupation and annual income are generally the most important factors in calculating the premium.
5. Choose a non-cancelable policy if your in it for the long run as it ensures that your premiums will not increase later.
6. Opt for a short duration of coverage if you think your family can rebound within a brief period of time. The longer the duration, the more expensive the premium.
7. Remember that an "any occupation" plan is considered to be the cheapest disability plan. It provides coverage in case you cannot work at all due to disability. Other policies such as "own occupation" can be quite expensive.
8. Consider buying an "income replacement" policy if you are not a high earner and only wish to get coverage for your family in the future.

Tips & Warnings

• Make sure you buy the waiver of premium option which allows you to do away with paying premiums after receiving the benefits of the disability claim.
• Get memberships to professional organizations in your area of work that offer excellent disability insurance benefits under their group plan.
• Remember there is a waiting period for getting disability benefits. Shortening this period can raise your premium rates.