There are ways to save on disability insurance

You should first understand the difference between short-term and long-term disability and what they provide you. Knowing this, you can lower your costs and save money.

Short-term disability supports your income from a month to a year of disability. This sort of disability insurance is often offered through employers, although not always. Long-term coverage pays up to 60 percent of your pre-taxed income up to five years.

Knowing which plan you want to invest in can help cut costs before you even begin. Here are five tips on how you can save money on your disability insurance.


    1. Don’t put it off: While disability insurance can be pricey, it is better to buy disability insurance sooner rather than later. The sooner you invest in a plan the cheaper it will be as prices go up as you age.


    1. Choose a longer waiting period: Pick a plan where the coverage kicks in after a longer waiting period. This can lower the cost and save you money upfront. You can put that savings towards your monthly premiums and build up your emergency fund.


    1. Avoid exclusions: While you might not have any risky health issues now, the odds of that increases as you age. And this can lead to some plans excluding certain coverage because you become a risky investment. Avoid this by choosing a plan early.


    1. Stop premium hikes with a non-cancelable contract: A noncancelable contract is a policy that cannot be canceled by the insurance company, unless the premiums are not paid. This type of plan gives you the right to renew your policy every year without an increase in the premium or a cutback of benefits.


  1. Chose the “own occupation” rider: This type of plan will allow you to receive full benefits if you’re unable to work in your original occupation even if you are still making an income through a different job.Keep these strategies in mind as you research the best options for you. Remember the best and easiest way to save money on disability insurance is to not wait. Purchase early and you’ll save in the long run.

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