Cost of DI and Income
- Thread starter Joe K
- Start date
- 2,623
In theory, a low income person should pay the same premium as a high income person if the coverage and the underwriting criteria are identical through one insurance company.
However, there are many variables that go into determining the premium.
If this is actually happening you are going to have to give us more details about the situation before we can make sense out of it.
However, there are many variables that go into determining the premium.
If this is actually happening you are going to have to give us more details about the situation before we can make sense out of it.
- 11,277
Occupation and job duties play a big part of disability coverage pricing.
For your theory - a low income person probably has more laboring duties, while a higher income person - even in the same business - may have more administrative duties.
For your theory - a low income person probably has more laboring duties, while a higher income person - even in the same business - may have more administrative duties.
- Thread starter
- #4
I was quoted a monthly cost for DI insurance based on a salary of, lets say 100k. I then asked for a quote based on much lower salary, say 60k... no other changes requested, but the quote for 60k salary was 30% more expensive for the same monthly benefit amount. Does this make any sense?
- 11,277
It doesn't make sense to me, unless there's some other adjustment to the proposal.
Your profile says you're in New York, so maybe there's something unique to New York that's going on, but I don't know.
Your profile says you're in New York, so maybe there's something unique to New York that's going on, but I don't know.
- 2,623
It could, if you were talking about the disability benefit.
If you wanted a monthly benefit of $8333 (1/12 of $100,000) as opposed to a monthly benefit of $5000 (1/12 of $60,000) the rate per hundred of benefit could be discounted for the higher amount of coverage.
Beyond that, did you ask the agent why there was a discrepancy?
Better yet, did you just walk away and seek coverage elsewhere?
eersfan
Super Genius
- 200
Another factor is whether the quote is all base benefit or whether SIS* is included.
*Social Insurance Substitute...i.e. Social Security Disability
*Social Insurance Substitute...i.e. Social Security Disability
Nothing like that in NY. (although you're not wrong to think that NY might have some funky rules)
Last edited:
Is your profession one that bases occupation class on income, like a realtor or office worker? That could account for an increased cost (but I can't imagine it would be that large based on your example).
- 10,328
The only explanation I can think of is there is something different in one of the illustrations. Probably SIS.
Similar threads
