Things You Need to Know about Buying Disability Insurance Coverage on Your Own

While many organizations offer disability insurance policy to their workers, the employer-sponsored insurance policies cover only a part of the base salary of the employees. It is a good idea to buy disability insurance on your own if your salary far exceeds the cap or you are dependent on commissions or incentives. You should also consider buying a policy if you are self-employed. A disability insurance company will take into account all your different sources of disability insurance to ascertain how much coverage you can buy. In general, you may not be able to replace more than 75% of your income from all the sources combined. It is important to choose the best disability insurance company to get yourself insured.

Benefits of Buying Your Own Policy
  • You can customize the insurance coverage as per your specific requirements; you can add extra features like adjustments of annual cost of living
  • Pick the disability insurance company that offers the best deal
  • You can carry forward the insurance coverage even when you change your job. Employer sponsored insurance comes to an end when you leave your company
  • If the employer pays for the insurance you will have to pay tax on the benefits but if you pay the premiums you would be eligible to get the benefits tax-free
Factors Affecting the cost of Disability Insurance

A number of factors act as determinants of cost, at which you would get the disability insurance. Some of them include your age, health, gender, occupation and whether you are a smoker or not. Other things that the insurance providers take into consideration, while deciding the cost are how broad is the definition of disability, broader the definition higher would be the premium, what is the length of the waiting period before the benefits kick in, what is the length of the benefits, i.e. for how long the policy will pay you if you become disabled and lastly the added features that you opt for, if any.

Once you decide to buy insurance look for the best disability insurance company. It is better to be prepared for something that may never happen, than not be prepared for if it at all.

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