What to Look for When Choosing a Disability Insurance Company?

There are many different insurance companies that offer disability insurance coverage. Even if you think your employer has one, it is a good idea to research other companies and make the best decision for your specific needs. There are several factors you should consider when choosing a disability insurance company. 

For example, how long has the insurance company been in business? An established company is more likely to be able to pay your claim than a new one, so look for reviews from your friends and family. After you have decided on a few companies to compare, take a look at the premiums. The rate does not mean anything unless you compare the coverage and features included with each insurance plan. When comparing benefits, try to narrow it down to 3 companies that offer similar coverage. If a disability is serious enough that you will rely on this insurance plan(s), then research how they handle claims.

Here are some important factors you should consider when choosing a disability insurance company.

  • The definition of disability

The definition of disability might be different for different companies. Therefore, it is important to take a look at how each company defines disability. Keep in mind that a disability insurance company cannot define “permanent” disability. The definition of permanent disability varies from state to state.

  • Portability

When you purchase a disability insurance policy, it is possible that you will change jobs. It is important to find out if your policy will follow you to your new position. Look at the policy to see if there are any limitations on where you can take your insurance.

  • Your premium

The premium is the cost of your coverage and the amount you are paying for it each month. Make sure that the premium is reasonable for the coverage you are getting. Look at all of the insurance companies that offer a similar kind of policy and compare their premiums to find out which one offers the best value.

  • Cost of living benefits

If you are a permanent resident of the U.S., disability insurance is normally exempt from Social Security taxes. You do not want to pay taxes twice but it is important to know what your policy will cost you. Compare the costs of other policies that contain similar features and compare them with those provided by disability insurance companies.

  • Collection time

Disability Insurance companies have collections policies in place. These policies are designed to make sure that they are paid and to encourage people to pay their premiums on time. The collection policy usually requires a more aggressive approach than what you might expect from an ordinary insurance company.