One way to hold down the cost of disability insurance is to extend the “elimination” period before disability benefits begin. Your choices can be anywhere from the 30 days to 365 days after the onset of disability. You will pay less in premiums by selecting a longer elimination period.
In practice, choosing a 365-day waiting period generally saves little versus a 180-day wait. With this in mind, you might have some of your insurance set to pay after 30 days, some after 60 days, and some after 90 or 180 days. This will help hold down premium costs yet still provide some income while you wait for all the coverage to take effect.
What’s more, as you accumulate wealth, you might want to increase your self-insurance. Your coverage with a 30-day waiting period might be extended to 60 or 90 days, for example. Insurers don’t mind being asked to take less risk, which will be the case if you extend the elimination period. You probably can make such changes and reduce your premiums without having to take a new physical exam.