If you are a female professional that is in the market for Long Term Disability insurance, you probably have realized that disability coverage for women is fairly pricey. Due to a higher claims history with women, insurance companies usually charge 30-40% more for women than they do for men. As a female professional, it is important that you learn about the different ways that you can save on your premiums without having to sacrifice the benefits.
Most people looking for individual Disability insurance will do so either because they are self-employed or because their employer does not provide coverage for them. Whether you are a female business owner or a female professional working for a small, medium or large business, you could qualify for significant savings on your Disability insurance premiums. The following are two techniques we often use for our clients.
Multi-Life Disability Insurance Discount
The first and most effective manor in which female professionals can save money when obtaining individual Disability insurance, is by applying through a multi-life scenario. Insurance carriers offer multi-life discounts to groups of 2 or more (3 or more, with some carriers) people who will be applying for Disability coverage together, as long as they work for the same business. Having more than one applicant distributes the risk an insurance company is taking and therefore, they are willing to offer discounts as an incentive. There are two ways that women save money when applying through a multi-life scenario. First of all, each applicant will qualify for unisex rates, which can reduce female rates by approximately 30 percent. Additionally, insurance companies offer a 5 to 10 percent discount because there are multiple policies being obtained. Typically while a male professional may save 5-10 percent, a female will normally save upwards of 40 percent on their premiums by applying under a multi-life discount scenario.
Many insurance brokers/agents do not market this opportunity as much or as well as they should – perhaps because they would rather the higher commission on individual policies or perhaps because they simply do not have the knowledge base. In either case, as a savvy and informed consumer, you should ask questions about the multi-life program offered by each Disability insurance carrier you consider.
Association Discounts for Disability Insurance
Another way of saving on your Long-Term Disability insurance premiums as a woman is by researching Association Discounts that may be available. For example, one insurance carrier we work with will provide a 10 percent discount to all members of the National Association of Women Business Owners. When speaking with an insurance broker/agent, you should let him/her know about any associations you belong to or are considering joining. You may qualify for discounts that you are not aware of. In some situations, you may even be able to join simply to take advantage of the discount available.
Be careful not to mistake association discounts for association plans which are actual disability contracts provided through associations such as: American Medical Association, American Dental Association, American Bar Association, American Institute of CPAs, American Veterinary Medical Association, etc. Although plans provided by such associations may be less expensive, the coverage they provide is significantly lower quality than an individual policy. Commonly, these types of plans are specifically weak in their definitions of disability, residual benefits and often include a 24-month limitation on benefits for disabilities caused by mental or nervous conditions.
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