|
|
| *Loan,banking and credit>>>disability insurance |
Short-term disability income insurance, question about premiuim? |
I pay for my short-term through work which covers me for 6 months in the event of a disability but could get additional months coverage to compliment my long-term policy which kicks in after 6 months. Does the premium you pay for a Short-Term group plan cost more if you choose a plan when applying for coverage with a longer duration of coverage, since the insurance company would be taking a greater financial risk having to pay you for additional months. Say you got the plan with with 12 months coverage as opposed to only 6 months would that mean in the event of a disability that lasts atleast a year the insurance company would be paying your income for a much longer duration of time (6 more months) thus requiring a higher premium due to the added financial risk they are taking due to length of payments (12 months)? Yes - the longer the duration, the higher the premium. Harry, You are right on the money here. The longer you request to have the insurance company pay a portion of your salary the higher the premium will be. Now this is justifiable by the insurance company because what you are doing is transfering the risk of you becoming disabled and not having any income to pay your bills to the insurance company. Depending on your age the probablity of becoming disabled for 90 days or longer prior to age 65 is as follows: 25 yr old: 53.7% 30 yr old: 52.2% 35 yr old: 50.3% 47 yr old: 47.7% 55 yr old: 32.1% As this table shows (and I have more numbers for other ages if I didn't get yours on here) the younger you are the higher you chances are of becoming disabled for a long period of time than when you are closer to age 65. This doesn't mean that you need to drop your coverage, but it means that once you have hit the retirement age you can. One other thing to consider when looking at your disability insurance or any other insurance you have, is to look into getting some individule coverage that you can take with you if you decide to change jobs, because what would happen if you decided to take a two week vacation to Mexico inbetween, did some wild and crazy thing like zip-lining, and fell from 100 ft up in a tree? Now you're stuck because you can't start work at the new place, and your old work policy is no longer in force, (don't laugh at this senario, it has happen) and now you don't have a pay check to pay your mortgage/rent! In the financial business over 7 years Insurance Agent 2 years www.alaldrete.com testing |
| Tags |
| homeowner insurance house insurance contents insurance liability insurance life insurance disability insurance dog insurance pet insurance fire insurance flood insurance employment insurance |
SiteMap--Copyright/IP Policy--Contact Webmaster--Resource of HR For personal non-commercial use only. |