Check Associations: If you're a professional you might want to look to your industry's association for group plans. Many associations offer members various benefits including life and disability insurance. Review the cost and details of these plans.
Determine Disability Type: Not all disabilities will be covered under a policy. A computer programmer will be concerned with disabilities such as carpal tunnel syndrome. Which disabilities are covered under your plan?
Guaranteed Insurability: This is not a disability insurance option to ignore. If you want to add more insurance in the future without more medical qualifying, the guaranteed insurability option is best for you.
Non-cancelable Policy: If you want fixed premiums and benefits consider a non-cancelable policy. This is the best option for locking in your costs and benefits but it does come with a higher price tag. Work with what you can afford.
Look at Financial Ratings: Before you make the final decision in selecting disability insurance, review the carriers. A.M. Best Company or Standard and Poor's provides ratings of the financial strength of insurance organizations. Your insurance broker can provide you with ratings.
Play the Waiting Game: Increasing the waiting period or elimination period of the disability payout can result in lower disability insurance costs. Look at your financial resources and estimate how long you can last before receiving benefits. Keep in mind the first payment will usually be 30 days after your waiting period.
Review Existing Policies: Review your life and mortgage insurance policies to explore the cost of adding a disability rider on the policy. A waiver of premium rider can help reduce your expenses in the event of a disability.
Business Overhead Policy: A business overhead expense (BOE) plan can be a welcomed addition to policy holders who not only want income covered but overhead such as: payroll, benefits, rent, and utilities as well. This option can help keep your business running while you recover from a disability.
Find an Agent or Broker: The business of insurance is complex and constantly changing. As a small business owner find a good insurance broker or agent who will help you find the best policy for your needs and help steer your business through the maze of disability insurance options.
Buying disability insurance for your small business shouldn't be based on premium price alone. Finding the best plan for your business will require a look at the options essential for your circumstances and budget.
