Lowering Your Medical Diability Insurance Costs

You have lost your medical disability insurance. Now you have to find your own policy. There are several things you can do to find a lower premium as you do your search.

Types of medical disability insurance

  • The first type is short-term medical/disability insurance most employers offer a standard short-term disability policy that will cover on average, 60% of your income, has at least a two week waiting period and a benefit period of 13-26 weeks. An individual short-term medical/disability insurance policy can be downgraded or upgraded to better fit your budget.
  • The second type is long-term medical/disability insurance. This policy may also be offered by your employer in a standard form. There is a longer waiting period with long-term medical/disability insurance vs. short-term medical/disability insurance, usually 30-180 days. The standard benefit span is 5 years, but can be extended up to retirement age. Individual long-term medical/disability insurance policies can also be upgraded or downgraded to your budget.

Ways to lower your medical disability insurance

The first and most important way to keep any insurance premiums low is to keep you healthy. Eat right, keep in shape and get regular checkups.  Combined, these can keep you healthy and catch problems before they get to the disability point.

Another way is to reduce the benefit amount. By taking a lesser payout on your plan, your premium will drop if the companies can payout less. If you are on a tight budget, take all the immediate savings you can. 

If you have enough cash on hand and savings, you can opt for a longer waiting period. This will reduce your premium by considerable amount. If you have some savings and take the longer waiting period, you may not need to use your medical disability insurance.

Check with the insurance agent that holds any other type of insurance policy you have. Getting several types of insurance from the same agent will earn a discount with most companies.

Shop around for the best deal

Get quotes and information from several companies. If you had medical/disability insurance through your employer, check with the company they did business with. Use this as a starting point.

The internet is a great resource for finding lower cost medical/disability insurance. Get several quotes from a couple of sites. Compare the options and the cost of each. Look for options that you don't need or can increase or decrease to save on your payment. If you can live on what you have saved or on your spouse’s income, then take a lesser payout.

There are so many variables in insurance. Policy requirements vary from state to state. Your insurance agent will know what is required for your state. If you want to state specific information, consider contacting your states Department of Insurance (DOI). This is a very good resource that very few know about.

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