Disability Income Insurance: Coverage, cost and waiting period

Disability income insurance is a source of supplementary income if the policyholder gets involved in an accident or falls sick. Typically, the benefits include part of the monthly salary of the policyholder. As a result, the insured individual can maintain their standard of living and made routine expenses. We are going to talk about disability income insurance. Before you get disability income insurance quotes, make sure you understand the basics first.

Disability Income Insurance Coverage, cost and waiting period


Usually, this type of insurance can cover up to 65% of the gross income of the insured individual on our tax-free basis. Besides, some of these policies offer commissions and bonuses as well. The reason is that after-tax dollars are used for premium payments.

While some employers do offer worker protection and other plans, the coverage doesn’t offer enough protection. In other words, the compensation amount is not enough to help the employer cover their expenses. Apart from this, Worker Compensation can only cover work-related injuries. So, it’s important to get disability income insurance quotes to make the right choice.

The Cost of Insurance

This type of insurance involves different factors that have an impact on the final premium. Generally, the range of premiums is 1.5% to 3% of the employee’s gross income. Also, insurance underwriters also take into account the underwriting process. The applicant’s agent must be between 18 and 60 years.

Typically, the insurance rates are higher for women. According to the reports from Claims Data, insurance provides paid more to women than men during the early period of their lives. Partly, it’s because of breast cancer, depression, and other autoimmune disorders. Most buyers don’t consider this pointer when trying to get the best disability income insurance quotes.

Also, smokers have to pay higher premiums than non-smokers as smoking increases the likelihood of different types of diseases. Insurance companies also consider income and career classifications when figuring out premiums. If the career or income source involves lower risk, the premiums will also be lower and vice versa. Therefore, when getting disability income insurance quotes, you should keep this in mind.

Waiting Period

Most of these policies provide a benefit amount on a monthly basis. They have a waiting period, aka elimination period, before the policyholders receive the benefits. The benefit period is between 2 and 10 years. The premium amounts will be higher if the benefit period is extended.

Different insurers have different policies when it comes to disability insurance. Therefore, we suggest that you contact each provider if you want to get the best disability income insurance quotes.


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