In tough times, we’re all looking for ways to save money. When you’re healthy and working, it’s hard to imagine being disabled by illness or injury. But be careful about disabling your Disability insurance. When you need it, it’s often too late. Bear in mind that:
- One in three working Americans will suffer a disability that keeps them from work for at least 90 days before retirement (age 65).
- The average disability absence lasts 2½ years.
- More than 80% of working Americans don’t have enough Disability insurance.
There are ways to reduce the cost of your premiums. For example, you can choose a longer waiting period before your benefits begin, or elect a shorter benefit period.
If you have enough resources to cover all your expenses during the first three months of a disability, a longer waiting period might be appropriate. Your premiums will probably be lower for coverage that starts after you’ve been disabled three months than for a policy that pays benefits after just 30 days.
Often, choosing a policy with benefits with a shorter benefit period — say to age 65 instead of for a lifetime — will lower your premiums. However, bear in mind that choosing a benefit period of two to five years to reduce your premiums, ending before normal retirement age, could be tragic. The longer the disability, the more likely that it will pose financial hardship.
If you’re considering making changes to your Long-Term Disability policy, call us today!