Does Disability Insurance Increase With Age?
Yes, the cost of disability insurance typically increases with age. This is because as you get older, the risk of becoming disabled and the likelihood of filing a claim increases. For an in-force policy, the premiums are generally fixed and do not increase as you age. However, if you apply for a new policy at an older age, the premiums will be higher compared to applying when you were younger.
Key Factors Affecting Disability Insurance Cost
- Age: Older applicants face higher premiums due to increased risk.
- Health Status: Pre-existing conditions or poor health can raise premiums.
- Occupation: High-risk jobs may lead to higher insurance costs.
- Benefit Amount: Higher benefits result in higher premiums.
- Policy Terms: Longer benefit periods or shorter waiting periods increase costs.
Disability Insurance Premiums at Different Ages
In summary, while an existing disability insurance policy typically has fixed premiums, the cost of obtaining new coverage increases as you age. It’s more cost-effective to secure disability insurance at a younger age. For personalized advice and to explore your options, contact us today for a free quote.
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