The Jacobs Company;

The Jacobs Company

How to Buy Disability Insurance Affordably

The Insurance Industry is starting to modify its product line since the prices on Disability Insurance have soared. Here are some important issues to consider when purchasing your disability contract:

Consider a longer elimination period (90 days or even longer).
Consider buying a contract where you have a very good (own occ) definition of disability for 2-3years and then a reasonable definition of disability for the rest of the disability.
Buy part of your disability insurance using a Social Security rider.
Consider buying a step-rated contract where the premiums are not locked in at the time of purchase, but can go up over time.
Consider buying a policy that provides income replacement (i.e., if your benefit is $3,000 monthly and you go out and earn $700 at something else, the contract only pays $2,300 - this could also be called integration).

This document was last modified on July 26, 1999