The Benefits of Disability Insurance far Outweigh its Cost

When you decide to purchase disability insurance, do so when you are young, preferably as soon as you have a stable job in your mid-twenties. The other important thing to remember is always go for a long term policy unless you already have long term disability coverage from the group insurance that your employer provides. However, you need to remember that group insurance is likely to change or get withdrawn in case of changes in your job status or changes at your employer’s end. Hence, it pays to go for an individual long term policy early in your career as the benefits are unmatched by any other source of financial security in case of disability. 

Reasonable cost for such important coverage 

Generally, when you buy a doctors disability insurance policy or any other coverage against disability, the cost would range between 1% and 3% of your annual income. That is a ballpark figure and it can vary according to the kind of income replacement you want from the policy. 

Here are some examples of what such disability insurance services could cost you for certain specific income brackets. For an annual salary of $32000 the monthly premium would be between $26 and $77; for an annual salary of $55000 it will range between $65 and $130 and for annual income of $95000 the cost range is between $80 and $230. 

Factors that impact the cost of your policy 

There are several factors that are considered by your insurance provider when they calculate the cost of a dentists disability insurance policy or for any other job specialization. Your age at the time of purchase, your occupation, duration of benefit, compensation amount and of course, the state of your health are important considerations. 

For instance, if you want a physicians disability insurance policy, all these factors would be considered in relation to your profession to derive the basic cost of your policy. Then there is something called an ‘elimination’ period that refers to the time when you make a claim and the time when you start getting the benefit.  

Smart utilization of riders to optimize cost and benefit 

The benefit payout range of 1-3% may appear quite close but accounts for a major difference when the benefits are finally paid out. In any healthcare professionals disability insurance policy costing around 1% of your annual income, be prepared to wait longer for the benefit payout as well as a shorter period of coverage. 

If you are wondering what makes your healthcare professionals insurance for disability more effective, you need to look closer at the riders that your policy allows you to choose. These are conditional add-on benefits with optimized costing that eventually push the cost of your policy toward the 3% range but also bring you better benefits. 

In any type of insurance coverage for disability, it is advisable to get the help of a disability insurance broker but you must carefully make your choice of such a broker. Try and get references from family and friends which narrows down your choice effectively because if they are satisfied with the services, there is no reason why the same services won’t be provided to you. 

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