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What does the cost of disability insurance depend on?

The cost of the disability insurance depends on various factors, such as the type of agreement with the insurance provider, waiting period, amount of benefits, duration of policy, your present health condition.

If disability agreement is "non-cancelable", the company is not allowed to cancel the contract, change rates or the term of agreement. In case you pay a premium on due time, the policy continues. In some cases premiums go up due to increase in the consumer price index. If disability agreement is "optionally renewable", disability policy is cancelled by the company when a renewable period comes and you have to go through physical exams.

The waiting period can change the premium. Longer waiting period means lower premium. Generally, the waiting periods last 30, 60, 90, 180, 365 days.

Your premiums influence your benefits. If your benefits are higher, the premiums also go up.

The duration of disability insurance policy depends on your choice. It can be from 2 years till your retirement age. The longer the period is, the higher the premiums are.

The most important factor influencing the cost of premium is your current health condition. If it is not very good, the insurer may consider it to be the risk factor.

Considering all the factors the insurance provider will make a decision about the cost of your premium.

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