Money Saving Tips - Disability Insurance
Disability insurance can be very expensive to buy, so make sure that you are not overpaying for your coverage. It can also be quite complicated so be sure to understand the policy completely and READ THE SMALL PRINT BEFORE YOU SIGN.
The best money saving tips for Disability Insurance is to get as much insurance per buck as you can and to keep the level of insurance down to the minimum you need. The best way to make savings is to fully understand you disability insurance requirements and the policy you go for.
- Check with your employer or union if they have contracted with an insurance company for discounted premiums. In some states it is mandatory. Many employers do contract for long-term disability policies, and this dramatically reduces the cost of the coverage.
- Only insure what you absolutely need to insure.
- Select the right elimination period. Balance the length of the elimination period with your sick leave and how much you keep in your liquid investments.
Disability Insurance Considerations
When considering Disability Insurance you need to consider the following
- What percentage of Income will the policy Pay
- How Long is the elimination Period
- At what age will they stop paying - This is normally 65.
- Does cover extend to illness as well as accident - Yes is the answer you are looking for!
- What if my Disability restricts me to part-time work - look for 'residual benefits', where a proportion of your disability payment is paid to cover the time you arr unable to work
- What are the criteria for deciding to pay out? - is it "owner's occ" or "all cc". This is an important question to ask and to understand - "any occ" disability policies will only pay-out if you cannot perform ANY occupation, "owner's occ" means they will payout if you cannot perform YOUR occupation.