How Is Disability Insurance Calculated?
- 61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaDisability insurance is a morbidity product that is priced on the average events that cause workers to be unable to perform their duties. But the averages can't account for personal medical items, so disability premiums are price on gender, age, smoking status, health history and current medical conditions. The design of the policy also has an impact via the elimination period, the length of coverage, the amount of coverage and ancillary riders like inflation or COLI riders.Answered on July 31, 2013flag this answer
- 63333 POINTSContact Meview profilePeggy MacePROMost of the U.S.Disability Insurance is calculated by the salary you make while in your current employment. You take out enough coverage to replace a percent of your income if you were to become disabled. If you are able to get a future increase option, your policy will increase as your income increases over the years.Answered on July 31, 2013+01 0+1 this answerflag this answerview more answers by Peggy Mace
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