8 of The Best Ways to Save Money on Disability Insurance

If you become disabled, you may not be able to work and provide for yourself or your family. Investing in disability insurance ensures you can continue to receive income if you become unable to work. By providing money for you to live on, it also serves to protect your future income, save your home, and keep your financial plan in motion.

Disability insurance is a crucial safety net for protecting your income in case of illness or injury, but many people believe they can’t afford the insurance premiums. If you haven’t invested in disability insurance because of the cost, we have some savings tips for you to explore.

Here are effective strategies to help you save money on disability insurance without sacrificing the essential coverage you need.

1. Shop Around and Compare Quotes

Different insurance companies offer varying rates and benefits for disability insurance. It's essential to obtain quotes from multiple providers to find the best deal. Look for companies with strong financial ratings and compare the specifics of their policies, including coverage limits, exclusions, and premium costs. Use ParasolInsurance.net to compare rates and save now.

2. Opt for a Longer Elimination Period

The elimination period, or waiting period, is the time you must wait before your benefits start. Choosing a longer elimination period can significantly reduce your premiums. If you have sufficient emergency savings to cover a few months of expenses, consider a 90-day or even 180-day elimination period instead of the standard 30-day period.

3. Elect a Shorter Benefit Period

While long-term benefits are important, electing a shorter benefit period can lower your premiums. Assess your financial situation and future to determine if a benefit period of two to five years is sufficient. For those with substantial retirement savings, coverage until retirement age (65) may be adequate without opting for lifetime benefits.

4. Opt for a Lower Percentage of Income Replacement

Disability insurance typically replaces 60-70% of your income. If you have other income sources or substantial savings, consider opting for a lower percentage of income replacement. This can reduce your premium costs while still providing a safety net.

5. Consider Group Policies

Employer-sponsored or professional association group policies often offer lower rates than individual policies. Check with your employer or professional organizations to see if they offer group disability insurance. These policies can provide substantial savings and sometimes include additional benefits.

6. Maintain a Healthy Lifestyle

Insurance providers assess your health status when determining premiums. Maintaining a healthy lifestyle by avoiding smoking, exercising regularly, and managing chronic conditions can result in lower premium costs. Some insurers offer discounts for policyholders who demonstrate good health.

7. Bundle Policies

Many insurance companies offer discounts when you bundle multiple policies, such as disability, life, and health insurance. Inquire about bundling options with your current provider to take advantage of potential savings.

8. Review and Adjust Coverage Regularly

Your financial situation and needs may change over time. Regularly review your disability insurance coverage to ensure it still meets your needs. Adjusting your policy to reflect changes in your income, savings, and financial responsibilities can help keep costs manageable.

Summary

Disability insurance provides an income in the event you become disabled and are unable to work. By shopping around, choosing appropriate coverage options, and maintaining a healthy lifestyle, you can secure affordable disability insurance and protect your financial future.

Get affordable disability insurance fast. Simply complete the online quote form now.