Methods on How to Save Money on Disability Insurance.
Good news! There are many strategies to get the benefits you absolutely need at the lowest cost possible. Here are a few ways to save money on disability insurance:
“Multi-Life” Group Discounts (and “Unisex” Rates)
One of the best ways to get a discount on your premiums is through an Employer Discount. This is known as a “Multi-life” Group Discount. If you are an employee at a large hospital, medical university, or residency or fellowship program, then there is likely a multi-life discount currently available to you. It is very common for medical students, residents, and fellows to receive these large discounts if they apply while attending the training program. If you are almost finished with training, make sure to apply before you leave the program so that you can secure this discount over the life of your policy. Also, if a multi-life discount is not yet setup at your current employer, we can easily setup a new discount if at least three individuals at the same employer apply for a plan. Once the discount is setup, it will remain in place for you and all future employees. Multi-life discounts are especially beneficial for females. Generally, the market charges much higher premiums for females than males due to the fact that historically females file more disability claims than males. Multi-life discounts can compensate for this since many of the plans offer “Unisex” rates, which result in tremendous savings. If you are a female resident or fellow, work for the VA, a university or a large hospital, please inquire about unisex rates as it could save you almost 40% on your premiums, translating into saving tens of thousands of dollars over the life of your plan.
Another way to get a substantial discount on your plan is through an Association Discount*. When requesting insurance quotes, be sure to let your insurance agent know of any associations, societies, and/or academies you are currently a member of (or thinking about joining) so we can apply these discounts for you. *An Association Discount on an “Individual” Disability plan is very different than an “Association” Disability plan purchased through a medical or dental association. Let’s be sure to discuss the BIG differences of this what this means to you.
Modifying Your Plan Design
In addition to including discounts on your plan, we could examine modifying your plan design in such a way to meet your needs, but save on premiums. For example, we could discuss your “Benefit Period”. If you have significant savings, perhaps you don’t need a disability policy designed to cover you up until age 70, but instead might only need a policy that would cover you to age 65.
Another example would be the “Elimination Period” (also known as the “Waiting Period”). While a 90 day Elimination Period is most commonly selected, if you have ample savings or a secondary source of income from a spouse, trust fund, investments, etc., we could take a look at a 180-day Elimination Period, or even 1-year Elimination Period option to save money on your premiums. This could potentially save you thousands of dollars over the life of your plan by applying this one simple plan modification.
There may also be riders on your policy that you do not actually need, and we can evaluate the ones that will actually be of benefit to you. However, one of the best approaches for keeping costs down is to apply for a plan when you are young and healthy. This will allow you to lock in a Disability Plan at the lowest age rating possible and likely the best health possible. If you are older, the sooner you apply, the more likely you are to enjoy better rates than if you wait until your health perhaps declines and/or you fall into a higher age category.
At The Disability Doc, we’d love to help you design a Disability Plan just for you that saves you money yet affords you the protection and benefits you need and desire.
As always, we’re here to help!
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*This information is solely used for general market educational purposes. It does not provide legal rights or actual carrier policy language. Please review the respective policies for the complete terms and conditions.