How Much Does Disability Insurance Cost?
Disability insurance covers the person named in the policy in case he or she is unable to work because of a sickness or disability. Most employers offer a certain number of sick days paid; however, these days will run out quickly. If you do not have disability insurance, you will no longer be paid. If you are unable to work and are not getting paid, you may find yourself in a financial bind.
How much is it?
- The cost of disability insurance will depend on the coverage needed, the company offering the policy, the age of the applicant, the job conditions and health conditions of the applicant. On average, disability insurance can range anywhere from $200 to as much as $2,500 per month.
- For example, DisabilityQuotes.com is an online website that provides quotes for disability insurance. According to the site, the price for disability insurance can range anywhere from $700 to $1800 depending on the salary of the person getting this type of insurance.
- AARP.org is another website that allows you to compute for the cost of disability insurance depending on several factors such as monthly income, expenses, and the length of coverage. The price can be anywhere from $250 to $700 based on the information that given to the insurance provider. The price can go higher and it can vary greatly depending on the information that you enter based on your current job and income.
What is going to be included?
- Buying disability insurance is a lot different when compared to buying term life insurance. There are several factors to be considered before a price is finalized. There is a term known as true own occupation which determines what you can collect as benefits if you are not able to perform your work.
- Disability insurance will pay a certain percentage of your monthly salary but will most likely not cover all of it.
What are the extra costs?
- Disability insurance is either paid monthly or annual basis; the only time you will be able to get coverage is if you paid your dues. When you take care of your dues, then there are no problems collecting the benefits that you deserve.
- The greater percentage of salary covered, and the greater the yearly salary is to begin with, the more the monthly price will be.
Tips to know:
- Disability insurance can cost a lot and you may want to consider opting out of this type of insurance and settling with term life insurance which can provide you a more thorough coverage.
- Disability insurance may be viable to those who are in a high risk job such as construction, although the premium might be higher due to the nature of the job. Disability insurance will be a benefit for those who may not be able to perform their job well.
How can I save money?
- You may want to think it through first before deciding on getting disability insurance since it may not be feasible to get one especially if your family is on a tight budget. Other types of insurance may be a priority since your employers will be providing you health insurance that you can use. If you do not have health insurance, consider using services such as eHealthInsurance to find the best quotes in your area.
- If you have decided to get disability insurance, you may want to check different insurance companies that offer it. There are companies that offer the insurance at discounted prices.