Here are the key things to consider when selecting a long-term disability policy:
Coverage or Benefit amount — this is how much you’ll receive if you get disabled. Experts recommend targeting benefits equal to 60% — 70% of your income.
Elimination period — this is how long you must be disabled before you can start receiving benefits. Most people find an elimination period of 90 to 180 days is the best balance of protection vs. cost.
Benefit period — this is how long you’ll receive benefits for if you get disabled. It’s ideal to have benefits through age 65 but having a 5 or 10-year benefit period instead could save you 10–20% on your premium.
Definition of disability — while there are a couple of definitions available, we recommend getting the strongest definition you can afford, especially if you are in a very specialized line of work. Our team of experts will to help you navigate this decision during the quoting and application process.
Cancelability — some policies allow the insurer to raise rates or cancel the policy under certain circumstances. Experts recommend buying non-cancellable policies so your insurer can never change your rates or cancel your policy as long as you are paying your premium.
While this may seem like a lot of choices, it’s not much different from customizing your car or homeowner’s insurance. At Saturday, you can do everything online at your own pace and we’ll be here to help anytime you need us.
Saturday Insurance Services, LLC (“Saturday” or “Saturday Insurance”) is a licensed, digital insurance advisor. All tools, quotes, and information provided by Saturday are for educational purposes only and based on the limited information, if any, provided by you. We urge you to consult with your financial and tax advisors before making any purchase decisions. All quotes and estimates are non-binding and are not to be construed as a guarantee you will be able to purchase insurance. Availability of insurance and final pricing is determined solely by our insurer partners and subject to their review and acceptance of a completed application. All product guarantees are subject to the claims-paying ability of your insurer.