Do you think disability insurance is too expensive? This is a common line of thinking, and one that is understandable. After all, life in the modern world is quite expensive, so who wants to add another monthly bill?
You already have plenty of things to pay for month after month and adding an insurance premium is not exactly an attractive option. Even if you know that it is a smart move from a financial planning perspective, you still might struggle to take action. The Social Insurance Supplement rider is an industry secret that helps policy holders save 15-20% off the typical costs of a disability insurance premium for the life of the policy.
A Word About Cost
There are a couple of things we would like to point out about the cost of disability insurance. First, rather than thinking about the cost of the premiums, you should probably be thinking about the cost of life without coverage. If you become disabled and are taken away from your work for a period of time, it may become impossible to pay your bills. In that case, you will have wished that you spent the relatively small amount of money to take out a policy. Sure, you might not ever have to use your coverage.
But if you do, it can save your financial future…
Another point that needs to be made has to do with the cost of coverage. Do you actually know how much a policy would cost in your situation? If not, you shouldn’t just assume that it is too expensive. There is a range of coverage options available on the market today, so finding something that fits your needs nicely shouldn’t be a difficult task. And, there are ways to reduce the cost of your policy, such as opting for a social insurance substitute rider.
Contact one of our coaches today to learn more about the social insurance supplement rider.
A Nice Compromise
A social insurance substitute rider is a benefit that you can opt to have included with your policy. This is an option which will help you bring down the cost of your monthly premium while still keeping valuable insurance in place. Anyone who is trying to balance the expense of a disability insurance policy with the need for coverage should think carefully about this possibility.
The way an SIS rider works is quite simple. The benefit payments you receive from one of these policies will be reduced by the amount of any other benefits you receive from government programs. For instance, if you are paid out money by social security disability, workers comp, or any governmental agency, those payments will reduce the benefit that is paid to you by the insurance company.
Clearly, it is easy to see how this works out for both sides of the agreement. The insurance company is ‘on the hook’ for a lower benefit payment to you as the policy holder, so they can charge you a lower premium. On the other side, you still receive enough money to keep paying your bills, and you save money each month up until you need to make a claim against the policy. Or, if the policy never is enacted, you save money the entire time you carry coverage.
It is important to have a private insurance policy when you become disabled because there is no guarantee that you will be approved for government benefits, such as social security disability. In fact, it is very much possible that the insurance company will approve your claim while the social security claim will be denied. With that in mind, you can know that you have the private disability insurance policy waiting, as valuable protection. If you don’t get anything from the government, you will be entitled to the full benefit value of your policy. If you do receive government payments, your payment from the insurance company will be reduced – but you will still get the same amount each month in the end.
Buy the Right Coverage
Whether you shop for a policy with an SIS rider or not, you still want to think carefully about how much coverage you need to meet your monthly financial obligations. Buying a policy that is not large enough will leave you in financial distress if you can’t work, while buying a policy that is too big will cost you more than is necessary each month. The goal when shopping for disability insurance is to find the sweet spot; that point where you are getting enough coverage to pay your bills without having to pay a sky-high premium. Thanks to the power of the social insurance substitute rider, you may be able to reduce your expenses while still protecting your future.
There isn’t much bad to say about an SIS rider. Everyone likes to save money, and everyone likes to protect their future to the greatest extent possible. This type of disability insurance policy allows you to accomplish both of those goals.
Whether or not you choose to save money with a Social Insurance Supplement Rider It all boils down to this…
You only have three options to choose from when the unexpected accident or illness happens, and your payroll deposit stops:
- You can deplete your savings and retirement accounts
- You have a wealthy family member that will pay bills for you
- You planned ahead and have a disability insurance policy in place that delivers monthly, tax-free cash to your bank account, until you are ready to go back to work
Are you ready to speak with your own disability insurance coach? Click here or call today!