What is the best age to buy a disability insurance? Is there such term as short term disability insurance and long term disability insurance? What are the main factors that can affect your premium rate in your disability insurance policy? _________________ Free Insurance Quotes
I don't think that there is a best age. The younger the better of course. But it should be purchased as soon as there is an income from a stable job to protect. That may be at age 18 (working full time out of high school) or age 30 (after finally graduating university)
Even if you have group disability insurance through work you should get an individual policy to fill the gaps from excusions and limitations. I wrote about this recently at: canada-insurance-source.com/Supplemental-Disability-Insurance.html
Short term disability insurance can start on the first day or first week of a disability. It normally pays a benefit based on a percentage of your normal weekly income.
Long Term disability starts after a waiting period (Called the elimination period) has been satisfied. This is usually 30, 60 or 90 days but can be longer. The income received is also based on a percentage of your income up to a certain maximum.
In my experience the biggest factors affecting the rate (aside from overall quality of the plan and the definition of disability) are the elimination period, the benefit amount, the occupation of the insured (this is big), smoking status and overall health.
I hope that helps!
*link deactivated as per the fourms rule-lakemen _________________ I am an insurance broker from Ontario licensed for all types of insurance.
I agree with you, you can be hurt at any age, so having the insurance in place at the earliest age is the best deal. You can also buy insurance on individual bills.
I don't think age has got anything to do with applying for disability insurance...rather I believe its the probability of running into risks thats the key deciding factor of its necessity through a particular phase in a person's life..Even if you're a teenager & involved in a manufacturing or production process wherein you have an element of life risk...go for disability insurance. _________________ Register Now to have your Insurance queries solved.
Disability insurance is one of the most overlooked, but needed type of insurance.
I fully agree with Alston. Disability insurance is important, yet neglected form of insurance.
Some may feel that the chances of becoming disabled increases with the age, when it is only partially true. The reality is that average Americans face more threat of suffering disability during their young age. Every three out of ten Americans are exposed to the risk of becoming disabled before attaining their retirement age. Hence, the figure itself depicts the importance of purchasing disability insurance.
The disability insurance will partially cover the income of the individual that he/she may lose during the phase of disability.
