How does an underwriter at a disability insurance company decide whether to accept you and what rate to charge you? (By the way, for some interesting history on where the word “underwriter” came from check out The Life Insurance Blog for the May 28, 2005 post entitled Life Insurance Underwriting - Definition.) The decision process or underwriting for disability insurance includes several factors: 1. Your health history and height weight ratio 2. Your occupation 3. Your income and historical income 4. Your avocations (in case they might be considered “dangerous”) You’ll almost always get a medical examination, lab work, have an interview from a representative of the insurance company (not the insurance agent) and also a review of your income based on your income tax forms or your pay stubs. After review, the underwriter lets us know if you have qualified for a preferred (best rate), standard rate (most common) or if they’ll accept you and charge extra (called a “rated policy” or “rated up”) or sometimes not charge extra but give you an exclusion for a condition or even a part of the body such as lower back. We work on your behalf at protectyourincome.com to negotiate the best possible disability insurance rate for you and because of our volume of business we at least get a good hearing from the insurance companies. Companies differ on how they underwrite different situations and interestingly, the reputability of your representative and the relationship with the company can also make a difference. If you have a specific question about how your history would be treated for disability insurance you can go to the quote page or email us. We will contact the insurance companies on your behalf.

Ok, so you realize the need for disability insurance to cover what is potentially your largest asset - your income. Now which disability insurance company is right for you? Here are the three key points: 1. Financial strength of the company as measured by the independent rating agencies. This is of primary importance because this is the “bank” that will be holding your future earnings if you’re disabled. To learn more about insurance company ratings you can click here. 2. Contract structure as measure by the contract provisions. Important ones that are gone into detail in this blog and on the protectyourincome.com site include the definition of disability, what happens to your benefit if you return to work recovered but still have a loss of income (vital but often overlooked) and make sure the policy is guaranteed renewable and non-cancelable. That means that the price can’t be changed through age 65 and the contract can’t be changed. 3. Price. You might think this would be first and it would be if this were a commodity like lumber or a Sony camcorder but it’s not. Each policy from each company is different and each insurance company is different in size and strength. We can help. Check out the site, learn and then contact us and we’ll guide you through the process.