January 23, 2016 by Tony Novak
The forgotten type of health insurance – income protection in the event of accident or illness – has been absent from the online insurance exchanges for almost a decade. The last such product for online consumers disappeared from Freedom Benefits’ insurance exchange sometime before passage of the Affordable Care Act in 2010.
Individuals who want to investigate and purchase this insurance now have been required to work with a commission-based health insurance agent in an off-line environment. Some consumers prefer to avoid that scenario and so this leaves an unmet gap in demand for disability income services in the marketplace.
We have indications that a new generation of disability insurance products will soon be available for online enrollment at FreedomBenefits.net. The quoting and enrollment will be completely automated just like the major medical plans on Healthcare.gov, and the same level of personal support is available through OnlineNavigator.org to help explain the terminology and options available. I tested the quote engine and was impressed with its ease of use. Other details need to be worked out before the service is available to the public.
Disability income insurance is generally classified as short term or long term. In the past coverage ended at age 65 but the new products offer the option of extending coverage to age 70.
Disability insurance cost ranges from 2% to 8% of the amount of income being insured and the average is about 4%. In other words, the cost of insurance to protect a $1,000 per month income might be about $40 per month. Price varies with age, health and occupation as well as the coverage details selected.