Disability insurance protects your income if an injury or illness prevents you from working—but premiums can vary widely based on your health, occupation, and lifestyle. The good news? Most people qualify for discounts or can reduce their disability insurance costs with strategic planning.
This guide explains the most effective ways to get discounts on disability insurance so you can secure strong income protection without overpaying.
Why Disability Insurance Costs Vary
Several factors influence your disability insurance premium:
- Age and gender
- Health and medical history
- Occupation risk level
- Income level
- Benefit amount and duration
- Elimination period
- Lifestyle habits (smoking, high-risk hobbies)
Understanding these variables helps you target savings more effectively.
1. Buy Disability Insurance When You’re Young and Healthy
Age and health significantly affect pricing. Younger applicants:
- Have lower base premiums
- Qualify for better rate classes
- Lock in lower costs for the life of the policy
Applying early—even before you think you “need” it—can save thousands over your career.
2. Choose a Longer Elimination Period
The elimination period is the waiting period before benefits begin. Common options include:
- 30 days
- 60 days
- 90 days
- 180 days
Choosing a longer elimination period (especially 90–180 days) reduces your monthly premium because you assume more upfront risk.
Best for people with emergency savings.
3. Select a Shorter Benefit Period
Policies can pay benefits for:
- 1 year
- 5 years
- To age 65
- To age 67 or 70
Longer benefit periods = higher cost.
If you want lower premiums, consider a 5-year benefit period, which still covers many disabling conditions.
4. Improve Your Health Before Applying
Your physical health directly influences your rate class. You may qualify for better pricing if you:
- Maintain a healthy weight
- Reduce blood pressure
- Lower cholesterol
- Manage blood sugar
- Exercise regularly
Even modest improvements can move you into a more favorable rating tier.
5. Stop Smoking (Huge Discount Opportunity)
Smokers often pay 30–50% more for disability coverage.
Most insurers reclassify you as a non-smoker after 12 months tobacco-free, dramatically lowering your premium.
6. Choose “Any-Occupation” Coverage (If Appropriate)
There are two types of disability definitions:
Own-Occupation
You qualify for benefits if you cannot perform your specific job.
— Best protection
— Higher cost
Any-Occupation
You qualify only if you cannot perform any work suited to your background.
— More restrictive
— Lower cost
For some workers, any-occupation coverage may be a cost-effective alternative.
7. Reduce or Remove Riders You Don’t Need
Popular add-ons (riders) can increase premiums:
- Future Purchase Option
- Cost of Living Adjustment (COLA)
- Catastrophic Disability Rider
- Student Loan Rider
- Residual Disability Rider
These can be valuable, but if your budget is tight, removing unneeded riders can reduce your monthly premium significantly.
8. Consider Employer-Sponsored Disability Insurance
Employer plans often provide:
- Group-rate discounts
- Lower premiums
- No medical exam required
- Easy payroll deductions
Even if the coverage isn’t enough by itself, group policies can supplement a personal plan at a lower cost.
9. Take Advantage of Multi-Policy or Bundling Discounts
Some insurers offer discounts for customers who purchase multiple products:
- Life insurance
- Disability insurance
- Long-term care
- Home or auto (rare, but exists with certain providers)
Bundling can save 5–15%, depending on the insurer.
10. Maintain a Clean Driving and Lifestyle Record
Insurers consider risky behaviors when pricing policies. Improving or avoiding these behaviors can qualify you for better rates:
- Avoid high-risk hobbies (skydiving, racing)
- Maintain a clean driving record
- Limit alcohol use
Lower lifestyle risk = lower premiums.
11. Choose a Supplemental Instead of a Full Individual Policy
If you already have employer coverage, you can purchase supplemental disability insurance rather than a full individual plan.
Benefits:
- Much lower cost
- Fills gaps in employer coverage
- Customizable benefit amounts
This strategy ensures adequate protection without overpaying.
12. Pay Your Disability Premium Annually
Many insurers offer discounts for annual payment because they save on administrative processing.
Annual payment advantages:
- Reduced overall cost
- No monthly administrative fees
- Predictable yearly budgeting
13. Shop Around and Compare Policies
Different insurers evaluate health and occupation risks differently.
Comparing quotes helps you:
- Find better discounts
- Discover insurers that specialize in your profession
- Match your risk level to the best pricing model
Experts recommend comparing 3–5 insurers before choosing a policy.
Final Thoughts
Disability insurance protects your most valuable financial asset—your income. With the right strategies, you can reduce your premium substantially without sacrificing essential protections.
By applying young, improving health, adjusting policy structure, bundling plans, and reviewing options carefully, you can secure affordable disability insurance that supports your long-term financial security.