Insurance Blog

Female Professionals – Reduce your Disability Insurance Rates

Female professionals often have to pay more for disability insurance than their male counterparts. This is because women tend to file more claims than men. This has moved insurance companies to charge women 30% - 40% more. Still, you can find ways to reduce your disability insurance rates.

Individual disability insurance is most often purchased by women whose employers do not offer it or who are self employed. Regardless of whether you work for someone else or own your own business, you may be able to get a discount on your disability insurance. Use the following two tips to do so.

Disability Insurance - Multi-Life Policy Discounts

Individual disability insurance policies come with lower rates when you purchase a multi-life policy. Depending on which insurance company you deal with, these multi-life policies will be available for groups of either two or more or three or more. These individuals must all work for the same company in order to be eligible for these policies. Insurance companies can offer discounts with these plans because their risk goes down with a group plan. When you get multiple policies from the same provider, they usually offer an additional discount of between 5% and 10%. Women applying together also get a special unisex rate that is 30% lower than the normal one.

This type of insurance policy and its accompanying discounts are not well advertised, especially since insurance agents get paid more commission when they sell more expensive policies. That's why it's a good idea to investigate all your options before purchasing a policy.

Disability Insurance - Association Discounts

Association discounts are also available for female professionals who want to save money on their disability insurance. One example is the National Association of Women Business Owners. Simply being a part of this association will get you a 10% discount with some insurance providers. Sometimes, you may not even realize that you are entitled to an association discount. That is why it is so important to talk with your insurance agent about any associations you are a member of. This way you can maximize your savings. In some cases, joining an association you are not currently a member of may be worth it just for the reduced insurance rate you can get.

Remember, association discounts and association disability plans are very different. The American Bar Association, the American Dental Association, the American Institute of CPA's, the American Medical Association, the American Veterinary Medical Association, and other groups offer disability contracts that are referred to as plans. The coverage offered through these plans is inferior to that of an insurance policy. Weaknesses in such disability plans include a limit of 24 months of disability for nervous system or mental problems, poor definitions of what disability is, and poor residual benefits.