Factors That Affect Your Disability Insurance Rates


When investing in a disability insurance policy, the disability insurance rates that you pay are a major concern. There are several factors that affect the disability insurance rates. Let us take a look at some of them.

Disability is not a thing that anyone would want for sure. But nevertheless, there are always chances of you incurring some kind of disability or illness. Thus, it is advised that you invest in a disability insurance policy before hand. When investing in a disability insurance policy, the disability insurance rates that you pay are of a major concern. There are several factors that affect the disability insurance rates. Let us take a look at some of them.

There is no fixed or standard disability insurance rate. These rates vary from one person to another. Factors such as the income, age, occupation, health history and several others are taken into account to determine the disability insurance rates. Often, these insurance rates are also determined by the choice of insurance provider.

The waiting period is another important factor that affects the disability insurance rate. Waiting period basically refers to the time period for which you have to wait before you start receiving your disability insurance benefits. Typically this period varies from 30 to 90 days. This means that you will have to wait for 30 days after the onset of disability to receive your disability insurance benefits.

The disability insurance rate that you pay is inversely proportional to the waiting period. This means the shorter the waiting period, the more your disability insurance premium is going to be. So, try to go in for disability insurance policies with longer waiting periods. But, make certain that you will be able to handle your own costs during the waiting period else you could end up in a crisis.

Disability insurance rates also depend a great deal on whether you have opted for a government policy or you have settled for a private insurance plan. If you have chosen a government policy, then the rates are determined by the government. On the other hand, private insurance providers fix the rates depending upon the tenure of the policy along with other factors.

When opting for a disability insurance policy, there are certain benefits that you would wish to avail via the policy. The premium that you pay depends largely on the benefits offered via your insurance policy.  For instance, if your insurance covers only your accommodation and food expenses, then your premium is bound to be less. However, if your insurance policy covers other expenses such as recreation, travel and the like, then you would obviously pay a higher premium.

So the next time, you are investing in a disability insurance policy make sure that you give appropriate attention to the above mentioned factors. After all, you would not want to default on your disability insurance premium.