Buying Disability Insurance Coverage
Congratulations on taking the first step to protecting your income. You understand the need and value of having it, but now that you are ready to buy disability insurance, what do you do? How, where and when do you buy disability insurance?
Many people try to buy disability insurance using similar strategies as when purchasing a car. They shop for the lowest price by getting quotes from multiple insurance agents, assuming that all disability insurance is the same. I would advise against this practice in order to avoid making what could be a very costly mistake. The truth is that when you buy disability insurance, the lowest price will very rarely be the best deal.
With disability insurance, more than most things in life, you get what you pay for. Disability insurance is a very complex product that includes many more provisions and options than most people would ever imagine. The truth is that being unable to work because of an injury or illness can be very complex and for this reason, quality disability insurance must be very complex as well. To buy disability insurance simply to say you have it, is a poor financial decision. When you buy disability insurance, it is ok to look for the best price as long as you are looking for the best product first.
One of the first things I will often tell a person when first speaking with them regarding disability insurance, is to keep a list of important keywords that they should be looking for in every proposal they receive. I do this to stress the importance of quality over pricing for disability insurance. Do not make the mistake of shopping based on price alone. You should buy disability insurance by looking for the highest quality coverage. There are few companies that provide the highest quality provisions available, so pricing is usually not too different. The following is a list of keywords to keep in mind when you buy disability insurance:
- Noncancelable and Guaranteed Renewable
- Own-Occupation Definition of Disability
- Base benefit vs. Social Offset Benefit
- Residual disability w/ recovery benefits
- Future Increase Option
- Additional Disability Policy Riders
Where to Buy Disability Insurance
Nowadays, you can buy disability insurance in many ways: through an insurance agent you already use, an agent that a friend or family member used or even over the phone or Internet. I suggest being careful when working with a current insurance agent, especially if disability insurance is not one of his/her specialties. Interestingly enough, many insurance agents who are licensed to sell disability insurance do not know very much about it. They could actually be hurting you by providing a low quality policy, without intending to do so. I would consider the Internet a great place to look for information about disability insurance, as long as you go to the right websites.
Wherever you decide to buy Disability insurance, be sure to speak with the person first. If they do not discuss the importance of having a quality contract, the person is probably not very savvy when it comes to disability insurance. Anyone who truly knows disability insurance will stress the importance of quality over price, relatively quickly. If you’d like to buy disability insurance from one of our disability income specialists, call 1–800–817–4522 or submit a quote request today.
When to Buy Disability Insurance
Simply put: The younger, the better. In order to buy disability insurance you must complete an application, an insurance medical exam and the insurance company will even obtain medical records if needed. Unfortunately as people get older, their health will usually deteriorate as well. It is always best to buy disability insurance when you are young and healthy so that you lock into a low premium and also have a better chance of not having exclusions added to your disability insurance policy.
Disability insurance protects your most valuable financial asset, which is your ability to earn an income. You probably don’t want to be shopping for what some day may become your leading source of income, solely based on price. Call 800–817–4522 or submit a quote request today.