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Disability Insurance Premium Rates: Factors that Determine Your Rate

You should always consider looking at the wider picture, the fact that someday your lack might run out and all you may have left is whether you have saved for disability insurance or not, nonetheless, there are two types, the short term and the long term policy.

If you are going to get a package, first ensure that you are aware of the nitty gritties of both packages, for example, the long term package is able to help you get payments every year while the short term one helps you get payments for less than one year.

Prices of long term and short term disability policies vary from one company to the other and they are caused by several factors, so let’s look at some of these factors that cause this to happen.
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The most important factor to consider is the elimation period, the period before one starts receiving payments, so the longer the period, then the cheaper the premiums.
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The insurance you pick determines a lot, in fact, if there’s a shorter elimination period, then you will have some high premiums meaning some good returns and some amazing benefits too.

Benefit periods are determined by the amount of premiums paid and if the policy holder needs to extend this period, then he/she should consider paying more.

The insurance company has to look at several things before getting into estimating the premiums you will be paying regardless of the policy you choose reason being some people instantly just need to pay more for their premiums because of where they live and the nature of job they do.

Premiums are determined by so many factors and one of them being the amount of money earned per year and another being the health record of the policy record, so if you have a bad record, you will pay more premiums.

Ultimately, they will have to check the age and the gender of the policy holder, which helps in determining the cost of the insurance, most insurance companies hence have the right to increase their premiums.

In the long run, you will want a company that is able to keep it’s promise and that will deliver as promised, so take time to look for one good one because most companies will hike prices anyhow they wish without worrying about their customers.

Insurance companies will always want to use your money, so be careful when doing a research before landing on one company to work with.