Multi-Life Disability Insurance
Why pay full price when you can purchase with a discount? A multi-life disability insurance discount can significantly reduce the cost of coverage. Although it takes a little more effort to coordinate coverage, the savings make this an attractive option.
What Is a Multi-Life Disability Discount?
A multi-life disability discount is available when multiple people working for the same employer buy disability insurance from the same insurance company. The discount normally applies to groups of three or more, but some disability insurance companies offer a discount for groups of just two.
This discount can lower the annual premiums for disability coverage, often leading to significant savings. Many discounts are around 10% to 20%, but some are even larger. The exact amount depends on the insurance company and other factors.
Multi-Life Disability Insurance
Why pay full price when you can purchase with a discount? A multi-life disability insurance discount can significantly reduce the cost of coverage. Although it takes a little more effort to coordinate coverage, the savings make this an attractive option.
What Is a Multi-Life Disability Discount?
A multi-life disability discount is available when multiple people working for the same employer buy disability insurance from the same insurance company. The discount normally applies to groups of three or more, but some disability insurance companies offer a discount for groups of just two.
This discount can lower the annual premiums for disability coverage, often leading to significant savings. Many discounts are around 10% to 20%, but some are even larger. The exact amount depends on the insurance company and other factors.
Making Disability Insurance More Affordable
When you think about the protection that disability insurance provides, it’s clear coverage is a good deal and a smart investment. A paycheck is both the most valuable and most critical asset for many people. If it disappears, all other assets – the person’s house, car, and so on – can be in jeopardy.
Individual disability insurance makes sense, but the cost can make people hesitate. Coverage often costs around 1% to 3% of the policyholder’s annual income. In other words, if you earn $100,000 a year, disability insurance may cost $1,000 to $3,000 a year. You might need to buy a policy at the higher end of this range if you’re in a higher risk group or want to opt for robust coverage with riders that add extra disability benefits.
A multi-life discount can bring the entire cost down significantly. If you receive a 20% discount, you’ll save $600 a year without seeing a reduction in your monthly benefit.
How to Receive the Multi-Life Discount
It’s easy for employers to take advantage of the multi-life discount. For example, dentists can get a multi-life policy for themselves and add the office manager and hygienists to the policy, so that everyone is protected and enjoys a generous discount. Likewise, it’s common for employees within medical practices and professional firms to secure multi-life policies.
Here’s what’s involved:
- Find a group of three or more people who work for the same company as you and who also need disability insurance. These people do not need to have the same job title – they just need to work for the same company.
- Work with DIS to compare your multi-life disability insurance options and the discount your group qualifies for.
- Apply for coverage. We will walk you through every step and ensure you receive the appropriate discount.
What Types of Companies Can Receive the Multi-Life Discount?
The multi-life discount is a great option for employees at many different types of companies. For example, let’s say there’s a small accounting firm with a team of accountants, assistants, and an officer manager. All these employees need coverage. Even though they have different job titles, they have the same employer, meaning they can all apply to the same insurance company and seek the multi-life discount.
The multi-life discount is also a good option for many medical and dental practices. Doctors and dentists often open up small practices, where they work with nurses, dental hygienists, and office managers. These small groups may qualify for a multi-life discount.
For Larger Groups, Consider Guaranteed Standard Issue DI
If you have a larger group, you may be eligible for guaranteed standard issue disability insurance. Guaranteed standard issue disability insurance is typically available for groups of five or more. Since it makes coverage available with minimal underwriting, it can be a great option for people who don’t want to deal with an involved underwriting process.
For example, employees who have pre-existing health conditions might be afraid they would be denied coverage after a medical exam. Alternatively, employees might just not want to deal with underwriting and answering questions. With guaranteed standard issue disability insurance, there’s no barrier to coverage.
How to Save Money on Disability Insurance
The multi-life disability insurance discount is a great way to reduce the cost of disability insurance premiums, but it’s not the only way to save on disability income coverage.
- Shop around. When applying for disability insurance, DIS will automatically shop the market for you to obtain quotes from multiple disability insurance companies. This is especially important if you might be considered high risk – due to a health issue or a dangerous hobby, for example. Different disability insurance companies might provide very different rates.
- Increase your elimination period. The elimination period (or waiting period) is how long you have to wait before you can start receiving benefits. A short elimination period sounds good because you can start collecting monthly benefits quickly, but it has the downside of higher premiums. In the long run, it may be more cost-effective to select a longer elimination period and build up an emergency fund to cover the waiting period.
- Reduce your disability insurance coverage. Reducing your coverage in other ways can also lower your overall costs. For example, you could choose a shorter benefit period or do without optional riders that provide extra benefits. Think carefully about what you need. If you reduce your benefit period and then have a permanent disability that prevents you from ever returning to work, you might regret your decision to cut costs now. Nonetheless, since some coverage is better than none, you should seriously consider buying a basic policy if your choice is between buying inexpensive coverage or going without. This guide helps walk you through key policy features.
For insurance agents, offering a multi-life disability insurance discount is a great way to overcome price objections and close more sales. For employers, selecting a policy with a multi-life discount is a smart way to save money.
Suggested Resources
If you are a business owner who is interested in a multi-life disability insurance discount, a disability insurance agent can help you explore your options. Find an agent.
If you’re an insurance agent looking to offer discounted premium rates to multi-life groups, DIS can help. Request a quote.
Suggested Resources for Agents
The Guaranteed Standard Issue Disability Insurance Case Study
The Disability Insurance for the Workplace Handout
Article: Multi-Life Insurance – Help Business Owners Save Money and Reduce Turnover
