The cost of disability insurance is higher for women because historically women have lived longer and have filed more disability claims. This feature gives you the assurance that the risk of disability will be covered throughout the term of the policy. You also want to level premiums throughout the life of the policy. That way, you can budget and plan for the cost of covering this risk. Premium and Policy Considerations Premium rates depend on your age, health and occupation, all of which are significant factors in determining your disability risk.
Older people are at a higher risk of disability, as are people involved in hazardous work.
Your premium will also depend on the amount of income you are trying to replace. The higher the dollar amount of your coverage, the higher your premium. Means that the amount of the payments you might be entitled to receive from the insurance company will depend, in part, on one or more other benefits you may receive as a result of your disability. Typically, a certain target benefit is established and the policy makes up some or all of the shortfall. Return of Premium .