When is it best to buy disability insurance? A great question indeed! Rates for Disability Insurance Policies are based on your personal demographics as well as other factors at the time you initially purchase your policy.
For example, your “age” and your “health” are two important factors that determine your premium. Your rate is further based on your gender, the state you are living in, and your occupation (a specialty of medicine or dentistry). Given that most Disability Insurance Plans are purchased to last throughout the life of one’s career, you need to make certain that you are locking in the best rate possible.
On a general level, the longer you wait to purchase a Disability Plan, the more expensive your rate will be. As previously mentioned, this is because your rate is determined by the age you are at the time you purchase your plan. The younger you are when you apply, the lower your rate will be.
Also, since your rate is based on your health, you’ll want to apply when you are in the best health possible, which most often coincides with your age. If you are young, perhaps you have decided to delay purchasing coverage until you’re older and more well established; however, delaying obtaining a Disability Policy could potentially prevent you from getting a plan with the best provisions and rates should an illness or injury occur.
If you are still a medical student, resident, or fellow, this is definitely the best time to purchase a policy since you will have access to discounts (depending on which program you are attending) that you wouldn’t have access to otherwise. Most residency and fellowship programs in the United States have existing discount programs set up that allow you to get a reduced rate for disability coverage. The only stipulation is that you apply while still in training at the program. If you decide to wait until after you finish your training, this window of opportunity will close and the discount will no longer be available.
What if you are no longer considered young or already have health issues? There are still many available options in the market, and we’d be happy to help you look into them. While you will not likely receive the same rate as a young and healthy resident, we’ve had great success in helping people of all ages and varying health history successfully obtain a disability plan that offers the coverage and protection they need.