Why is disability insurance more expensive for women

Other optional definitions are available. Waiver of premium: Waiver of premium for disability is a provision in an insurance policy that states the insurance company will not require the insured to pay the premium if they are disabled and receiving benefits. Occupational rehabilitation and modification and access benefit endorsement: Helps pay for occupational rehabilitation expenses plus the cost of modification to your work environment to accommodate physical limitations.

Future purchase option 2 : This lets you increase coverage in the future as your income rises, without having to undergo a medical exam or provide proof of medical insurability. Cost-of-living adjustment 3 COLA : A policy rider that states the insurance company will increase your benefit to account for inflation.

It is particularly useful for early-career professionals such as doctors and lawyers who have invested heavily in their education. Retirement protection 5 : A rider that protects retirement savings by replacing the contributions you would have made to your defined contribution plan while totally disabled. You may remain eligible for disability benefits should you become disabled during that time, since your policy remains active. Social insurance substitute: This monthly benefit coordinates with payments received under Social Security and some other government programs.

There are two potential ways to get a disability insurance policy: Group disability insurance through your work or an association. You would think, then, they would be less likely to incur a debilitating injury that would prevent them from working. And, as a group, women live longer than men, which is why they pay less than men for life insurance coverage. However, as the statistics clearly show,women are 40 percent more likely to become disabled due to a long lasting illness and are, therefore, more likely to file a disability claim.

Accordingly, insurers charge women, on average about 60 percent more for disability coverage. Autoimmune Disorders : While both men and women can suffer from autoimmune disorders, women are much more likely to develop chronic conditions such as lupus, Graves disease, chronic fatigue, multiple sclerosis and inflammatory bowel disease. Many of these conditions can cause long periods of disability. Depression : Men suffer from depression too; however, it is much more likely to occur in women because some of the leading causes are related to biological issues with women, such as premenstrual and pregnancy complications, and postpartum disorders.

Maternity : One in four women will experience some sort of complication that could prevent them working during pregnancy or lengthen the time of post-pregnancy recovery. Buy in bulk.

The potential savings for the women must be weighed against the makeup of the overall group to determine whether this strategy makes sense for the practice. Select a longer waiting period before benefits begin—say, three to six months or even longer, which can reduce premiums significantly.

Why is disability insurance more expensive for women? Jun 21, Jamie Fleischner. Jamie Fleischner 21 Jun, Related Posts. Request A Quote.