When looking for the a company like DIBroker from which to purchase disability insurance, it is important to make an informed decision. Since there are so many aspects to consider, such as company reputation, premium costs and fees, coverage duration, customer service, and contractual obligations, it may seem to be overwhelming at first. Before purchasing […]
When looking for the a company like DIBroker from which to purchase disability insurance, it is important to make an informed decision. Since there are so many aspects to consider, such as company reputation, premium costs and fees, coverage duration, customer service, and contractual obligations, it may seem to be overwhelming at first.
Before purchasing disability insurance, it is essential to consider companies in good standing and obtain as much information as possible. A good place to begin is through contacting the National Association of Health Underwriters: America’s Benefits Specialists, at nahu.org. Their “Consumer Guide Disability Income Insurance” section contains responses to common questions as well as a “How much does Disability Insurance cost?” PDF file. In this document, there is an example of a benefits formula with various stipulations that include age, gender, smoker or non-smoker, and so forth. According to the article, policies do not generally exceed “60 percent of an individual’s gross income.” Furthermore, premium costs are usually in the “1.5 to 3 percent of gross income range.”
Since disability insurance costs vary from company to company, and depend upon a variety of factors that include age, gender, and levels and degrees of coverage, it is difficult to provide a standard amount. Most companies do not divulge this information without direct contact with a potential client, as they need to provide an assessment of the client’s needs in order to provide appropriate product information and recommendations.
Many company sites encourage visitors to contact their respective employer’s Human Services or Benefits Offices for information, particularly when an individual wants to increase their coverage beyond what their employer offers. If an employee does not receive coverage from their employer, it is possible that they may pay into an optional program.
Before buying disability insurance, study all available materials and conduct informational interviews with agents and other informed representatives. When possible, consult a tax accountant, government representative, or legal council.
