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5 Tips for Lowering Your Disability Insurance Premium

Disability insurance is an important financial tool that provides income protection in the event of a disability that prevents you from working. However, the cost of disability insurance can be a significant expense for many individuals. If you’re looking to lower your disability insurance premium without sacrificing coverage, there are several strategies you can consider. In this article, we will explore five tips for lowering your disability insurance premium, backed by research and expert insights.

1. Shop Around and Compare Quotes

When it comes to disability insurance, it’s essential to shop around and compare quotes from different insurance providers. Premium rates can vary significantly between insurers, so taking the time to research and obtain multiple quotes can help you find the most competitive rate.

Start by identifying reputable insurance companies that offer disability insurance coverage. Look for insurers with a strong financial rating and a history of reliable claims payment. Once you have a list of potential insurers, request quotes from each of them.

When comparing quotes, pay attention to the coverage details, including the benefit amount, elimination period, and benefit period. These factors can impact the premium rate. Consider working with an insurance broker who specializes in disability insurance to help you navigate the options and find the best policy for your needs.

2. Opt for a Longer Elimination Period

The elimination period, also known as the waiting period, is the length of time you must wait after becoming disabled before you can start receiving benefits. Choosing a longer elimination period can help lower your disability insurance premium.

Typically, elimination periods range from 30 to 180 days. By opting for a longer elimination period, such as 90 or 180 days, you can reduce the cost of your premium. However, it’s important to consider your financial situation and ability to cover expenses during the waiting period.

If you have an emergency fund or other sources of income that can sustain you during the elimination period, choosing a longer waiting period can be a cost-effective option. On the other hand, if you rely heavily on your income and cannot afford an extended period without benefits, a shorter elimination period may be more suitable.

3. Consider a Limited Benefit Period

The benefit period is the length of time that disability insurance benefits will be paid out if you become disabled. Typically, benefit periods can range from two years to age 65 or even lifetime coverage.

Choosing a limited benefit period, such as two or five years, can help lower your disability insurance premium. However, it’s important to carefully evaluate your needs and assess the potential financial impact of a shorter benefit period.

If you have other sources of income or financial resources that can support you beyond the benefit period, opting for a limited benefit period may be a viable option. However, if you anticipate needing long-term income protection in the event of a disability, it may be worth considering a longer benefit period, even if it comes with a higher premium.

4. Maintain a Healthy Lifestyle

Insurance premiums are often influenced by risk factors, including your health and lifestyle choices. Maintaining a healthy lifestyle can help lower your disability insurance premium by reducing the likelihood of developing health conditions that may increase your risk of disability.

Engaging in regular exercise, eating a balanced diet, and avoiding tobacco and excessive alcohol consumption are all factors that can positively impact your health and potentially lower your premium. Insurance providers may offer discounted rates or incentives for policyholders who demonstrate healthy behaviors.

Additionally, it’s important to disclose accurate information about your health and lifestyle habits when applying for disability insurance. Providing misleading or false information can result in policy cancellation or denial of benefits if a disability occurs.

5. Consider a Group Disability Insurance Policy

Group disability insurance policies are often offered through employers or professional associations. These policies provide coverage to a group of individuals, typically at a lower cost compared to individual disability insurance policies.

If you have access to a group disability insurance policy, it’s worth considering as a cost-saving option. Group policies often have lower premiums due to the risk being spread across a larger pool of insured individuals.

However, it’s important to carefully review the terms and conditions of the group policy to ensure it meets your specific needs. Group policies may have limitations or exclusions that differ from individual policies, so it’s crucial to understand the coverage details before making a decision.


Lowering your disability insurance premium is possible with careful consideration and research. By shopping around, comparing quotes, and understanding the impact of policy features such as elimination periods and benefit periods, you can find a policy that offers the right balance of coverage and affordability.

Maintaining a healthy lifestyle and considering group disability insurance policies are additional strategies that can help reduce your premium. Remember to consult with an insurance professional who can provide personalized advice based on your specific circumstances.

Ultimately, disability insurance is an investment in your financial security, providing peace of mind in the event of a disability. By implementing these tips, you can lower your premium while still ensuring adequate protection for yourself and your loved ones.

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