How Much Should You Pay For Disability Insurance?

How Much Should You Pay For Disability Insurance?

Consider this: if a 30-year old individual pays $37.84/month or $454/year for disability insurance that has a monthly benefit of $2,500, he or she would have paid a total sum of $6,810 by the time he/she reaches 45 years. On the other hand, at the age of 45, a person’s chances of having a disability would increase by at least 40% with the length of the disability lasting for about 5.8 years. If the individual really suffers a disability at the age of 45 and is too hurt to work, he or she should collect the benefits for 2.7 months. Then, he or she breaks even with the premiums paid for the last 15 years. That is why you need to be aware of what you should really pay for disability insurance.

Most financial experts believe that you need to pay between 1-3% of your annual gross income as the premium for a quality disability policy. For example, if an individual earns $50,000/year, s/he should allocate between $500-1,500 for a quality policy. In fact, your age, occupation, optional riders in the policy, and level of benefits also affect how much you should choose to pay as premiums.

It is also important to consider your personal budget when taking a disability insurance. Where does your personal budget fall in terms of 1-3% of your annual income? When we know what your budget is like, we can help to maximize the benefits of your policy. We can help you pick the most suitable policy from the wide variety of options available in our computer database. We update our extensive data on a regular basis to give our clients the best policies for their budgets. We help you choose the best policy depending on your short-term and long-term goals and budget. You can save a lot without any hassle or sales pressures when you consult our expert team.

You won’t have to waste your precious time meeting salespeople or shopping for disability policies since all transactions could be handled efficiently and safely through email or over the phone. Our highly secure, confidential, and personalized service allow you to shop from the comfort of your home or office.

How Are Disability Premiums Calculated?

 

These premiums are based on the age, gender, occupation, and the amount of lost income that you plan to protect. In fact, the lower the chances that your occupation will harm you, the lower your premium is going to be. If your chances of injury are higher, you may have to pay a higher premium for the policy. A construction worker has to pay a higher premium for disability insurance compared to an accountant working inside an office set-up.

The premium will also increase depending on the additional benefits that you choose to add. Optional benefits such as the ability to increase the benefits of the policy at a later date without a medical exam, residual benefits, and inflation protection will increase the level of premiums of your disability policy. That is why you need to be up-to-date with this information when taking out a disability policy.

For any inquiries about a disability income quote or help on picking a policy, please call us at (425) 246-4222. A highly qualified Pacific Insurance Group agent will assist you immediately.