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When shopping for disability insurance, it is important to look at the big picture and not just the rates. It is not like life insurance where the definitions and benefit are identical. Definitions and provisions can be complicated. Since no two disability policies are identical, there is no perfect way to compare them identically.
Prioritize these variables to determine the policy that’s the best fit for you:
- Premium (Cost)
- Benefits, policy provisions & definitions
If having a low premium is the most important priority, you may need to give up some benefits or go with a lower quality company.
If benefits, policy provisions and definitions are your highest priority, your policy may be more expensive.
If you want a low premium and quality benefits, you may need to go with a graded premium, lower benefit or take off some riders.
It is important for us to know exactly what you are looking for and what your priorities are so we can find the best fit for you.
Every quote from every insurance company should have a complete description of benefits. Sometimes this information is in the form of a brochure. Be sure to look through it so you know the different provisions in the policy. You may also ask for a sample policy that explains things in even greater detail.
Proposals typically have a cost grid to show you alternative benefit configurations for your premium. This way you can itemize what each rider costs and see how your premium would be affected if you took off a rider or changed the elimination or benefit period.
Some policies have benefits already included in the premium while others offer benefits a la carte. Look on the quote to be sure you are getting the provisions and riders you want. If you don’t see them on the quote, be sure to ask if they are already included in the policy.
Here is a list of provisions to watch for, with links to their definitions in our Glossary:
Benefit amount
Elimination Period
Benefit Period
Exclusions
Renewability (non cancelable & guaranteed renewable)
Definition of Total Disability (own-occupation)
Riders
Residual Rider
Future Increase Option Rider
Cost of Living Rider
Group Disability Replacement Rider
Social Security Substitute Rider
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