Switching disability insurance providers can help you secure lower premiums, better policy features, or improved customer service. But because disability insurance depends heavily on your income, occupation, and health, switching must be done carefully. If you don’t follow the right steps, you could be denied new coverage—or lose the protections you already have.
This guide walks you through how to switch disability insurance providers the right way while keeping your income protection secure.
Why People Switch Disability Insurance Providers
Policyholders often switch insurers because:
- Premiums increased
- Their financial or occupational situation changed
- They want stronger riders or better benefit periods
- Their current insurer no longer meets their needs
- They found better rates elsewhere
- Customer service or claims handling declined
Switching can be beneficial—but timing and documentation matter.
Step 1: Review Your Current Disability Insurance Policy
Before comparing other insurers, understand what you already have. Review:
- Benefit amount
- Benefit period (2 years, 5 years, to age 65, etc.)
- Elimination period (waiting period)
- Own-occupation vs. any-occupation definition of disability
- Riders (residual disability, cost of living adjustment, future increase options)
- Exclusions or limitations
- Premium structure (level vs. increasing)
- Renewal date
This helps you compare new options accurately.
Step 2: Understand That Switching May Require New Underwriting
Unlike other insurance types, disability insurance always requires updated medical underwriting unless it’s an employer-provided group plan.
This means the new insurer will evaluate:
- Your current health
- Past medical history
- Occupation risk level
- Income
- Lifestyle habits
- Recent diagnoses or injuries
If your health has changed since getting your original policy, switching could lead to:
- Higher premiums
- Benefit limitations
- Exclusions
- Full denial of coverage
This is why you must proceed cautiously.
Step 3: Compare Quotes from Multiple Insurers
Get quotes from:
- 3–5 top disability insurers
- Independent brokers specializing in income protection
- Carriers known for strong own-occupation definitions
Compare:
- Premiums
- Benefit period
- Elimination period
- True own-occupation vs. modified definitions
- Riders available
- Financial strength ratings
The goal is to match or improve your current coverage—not downgrade it.
Step 4: Evaluate Essential Riders
Disability insurance riders can significantly impact your benefits.
When switching providers, check whether you can secure:
- Residual/partial disability rider
- Cost of Living Adjustment (COLA)
- Catastrophic disability rider
- Future purchase options
- Student loan protection
Not all insurers offer the same enhancements.
Step 5: Apply for the New Policy Before Canceling the Old One
Never cancel your existing disability policy before your new one is:
- Fully underwritten
- Approved
- Paid for
- Confirmed active
Why?
- If you’re denied by the new insurer, you could lose all income protection
- New underwriting could add exclusions you didn’t have before
- A decline in health could make new coverage more expensive or impossible
Overlap is normal—and necessary.
Step 6: Review Your New Policy Carefully
Before making the switch, confirm:
- Approved benefit amount
- Premium cost
- Any exclusions (especially orthopedic, mental health, or chronic issues)
- Riders included
- Definition of disability
- Benefit period and elimination period
If your new policy is weaker or contains exclusions not present in your current policy, switching may not be worth it.
Step 7: Cancel Your Old Disability Insurance Policy
Once the new policy is active and confirmed, you may cancel your old one.
Before canceling:
- Request written cancellation
- Ask about potential refunds
- Stop autopay
- Keep documentation for your records
Some people choose to keep both policies—this is allowed, as disability insurance payouts can stack up to your income limits.
Step 8: Update Your Financial and Employment Records
Disability insurers may verify your income over time.
Make sure you keep:
- Recent tax returns
- Pay stubs
- Employment verification
- Business financials (if self-employed)
Accurate records ensure smooth claims if you ever need benefits.
Common Mistakes to Avoid When Switching Disability Insurance
These errors are costly and difficult to reverse:
- Canceling your policy before new coverage is approved
- Forgetting that new medical underwriting could cause denial
- Switching after a new medical condition appears
- Choosing lower benefits just to reduce premiums
- Overlooking the importance of riders
- Accepting a weaker “any-occupation” definition
- Failing to compare financial strength ratings
Disability insurance is complex—switching requires careful planning.
Final Thoughts
Switching disability insurance providers the right way can save money and improve your protection—but only if you avoid gaps, understand underwriting implications, and compare policies thoroughly. Because disability insurance is tied to your age, health, and earning power, switching must be done with strategic timing.
By applying for new coverage before canceling the old, reviewing riders carefully, and avoiding coverage lapses, you can transition confidently and maintain the income protection your financial future depends on.