Short Term Disability Insurance - Short term disability insurance is a type of insurance plan designed to compensate for the lost income due to a disability
Buy a term plan and secure your family
When you are holding an insurance policy, the insurance company charges you money in return for the coverage that they provide. This cost of holding an insurance policy that provides coverage is known as insurance premium. Depending on the type of insurance plan, you might be required to pay insurance premiums on a monthly basis or maybe semi-annually. In some cases, the insurance provider might also require you to pay up the entire amount upfront before the policy’s coverage begins.
Most of the insurance providers offer numerous ways by which a policyholder can make the payment of their bills, including online payment modes, options for automatic payments, debit cards and credit cards, bank drafts, cashier’s cheques, and money orders, among others. You might also qualify for a good discount deal if you sign up for billing options that are paperless or if you make the payment of the entire amount at once instead of just making the minimum payments.
There is no fixed cost for insurance premiums. It is possible for you to have the exact same car as your neighbor and end up in a situation wherein you might be paying more (or even less) for the same insurance plan – even if you have the exact same amount of coverage. It actually pays to browse around and compare the different policies and compare the prices offered by the various insurance providers.
You will pay higher premiums for a better scope of coverage. For example, a term insurance plan has a higher sum assured will have a higher term insurance premium than a plan with a lower sum assured. Similarly, a health insurance plan with a higher deductible will have premiums higher than the premiums charged on a plan with a lower deductible.
However, this does not mean that you should go for the cheapest insurance policy available, just so that you can save on some funds. It is very important to consider your current scenario and the likelihood of your need arising to use the policy when you are opting for the insurance plan that suits your needs and requirements.
There are various factors that are taken into consideration by the insurance companies when they calculate insurance premiums, some of them are:
Insurance companies are based on nothing but risk assessment. The higher the risk is involved in insuring, the higher are the premiums charged on the insurance. However, there are a few ways by which one can lower the insurance premiums.
One manner to lower the premiums is to form a bundle for your insurances. For instance, if you have your car, life, and home insurance plans with one insurance provider, you might qualify for a good discount.
There can be funds saved, of course, if you reduce your coverage. However, this is not always a good idea. It is important to be aware of your situation along with your likelihood of the policy usage before you make any such decision.
There are some other ways to lower your insurance premiums, which require a lot of commitment. For instance, many insurance providers charge smokers up to 50% extra as compared to those who do not smoke for health policies.
Similarly, you might qualify for cheaper car insurance, if you improve your credit score. Since people having a lower credit history are considered to be more likely to file a claim.
The Final Say
Regardless of whether you opt for bundling your insurance policies or not, quit smoking, or even improve your credit score, it always and forever helps to shop around. This ensures that you find the best of insurance plans at a price within your budget.