What does Disability Insurance Cost?
Disability Insurance is one of the most important coverage options for high income Americans. Although most people don’t realize it, the ability to continually earn income is a luxury that most people take for granted. Every day families in the USA are left devastated by a long term injury or illness that prevents the breadwinner from being able to continue earning income through their career. This type of tragedy can be avoided with a disability insurance policy.
Most people are reluctant to commit to disability insurance because they see it as a coverage option that they will never use. Fortunately, only a small % of people who purchase disability insurance will be required to use it.
However, this is partly what makes disability insurance more affordable than most people might think.
The average cost of disability insurance coverage from each of the will vary based on several factors. The key factors are mainly the applicant’s age, Income level, Industry type, and any pre-existing health conditions. However, in most cases Disability Insurance will cost a person between 1-3% of their total annual Income. The type of coverage will also be a large factor into the cost. For example, the length of coverage is an important factor, as are any elimination periods that may exist. You can get a general Idea of what a policy might cost by using out Disability Insurance Cost table below:Source: www.disabilityinsurance.org