Does Disability Insurance Increase With Age?

Shawn Plummer

CEO, The Annuity Expert

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

  1. Age: Older applicants face higher premiums due to increased risk.
  2. Health Status: Pre-existing conditions or poor health can raise premiums.
  3. Occupation: High-risk jobs may lead to higher insurance costs.
  4. Benefit Amount: Higher benefits result in higher premiums.
  5. Policy Terms: Longer benefit periods or shorter waiting periods increase costs.

Disability Insurance Premiums at Different Ages

AgeHealth StatusOccupationMonthly Premium
30ExcellentOffice Job$100
40GoodRisky Job$200
50AverageOffice Job$250
The monthly premium is just an example to show the effect age has on premium costs.

Conclusion

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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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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