How to Lower Your Premiums in 2025

Long-term disability insurance is a financial safety net that replaces your income if you’re unable to work — sometimes paying out every month until you turn 70.Typical premiums cost between 1% and 4% of your annual salary.As a high income professional, that adds up fast, and disability insurance costs can often reach several thousand dollars a year.  What if you could keep the same protection while paying less? Many people don’t realize that permanent discounts are available on long-term disability insurance policies.Securing a discount like this can cut costs by tens of thousands of dollars over the life of your policy.  This guide reveals some (not all) of the best ways to lower your premiums with long-term disability insurance discounts.

I’ve kept the names of the specific companies anonymous so I don’t get in trouble for sharing this information publicly.But all of these discounts are permanent and stay locked in for as long as you keep your policy.  Residency and fellowship discount If you’re a doctor or dentist, a simple way to get up to a 20% discount (25% in some rare cases) is to apply for disability insurance before finishing your residency or fellowship.This one is fairly well known by now, I hope.  The discount you get isn’t just on the amount you buy in residency — it stays on the policy permanently.That means any future increases in coverage will also be discounted, saving you thousands over time.

Not locking in this discount is the most common mistake I see.If you didn’t lock it in, don’t worry — other discounts may still be available if you missed this train.  Get the best price on own occupation disability insurance SLP Insurance will find you the best price even if it's not with us.Fill out the form below to get discounts of up to 30%.Employer discounts If you work for a large company, odds are you could be eligible for a discount (typically 10% to 20%) on your long-term disability insurance (note: this is different than your employer’s group policy).

Some of the “Big 5” disability insurers (Guardian, MassMutual, Principal, The Standard and Ameritas) offer discounts to employees of major companies.But here’s the catch: these savings aren’t generally advertised by the insurance company, and your human resources department might not be aware they exist.  The best way to find out is to have an independent broker ask the insurers on your behalf.If a discount is available, you’ll want to be sure it’s applied to your policy.In some cases, specific discounts might be exclusive to individual brokers — so it pays to ask around.  Multilife discounts: Save more when you sign up others No discount available through your employer? No problem! You can still save 10% to 20% (depending on the state you live in and your occupation) on your long-term disability insurance — and help your coworkers do the same.

Here’s how: If you can get two other people to buy disability policies through the same company and broker within a certain timeframe, all three of you get the discount.But the discount also extends to any future employees who go through that broker to get coverage.  If you’re a popular and charismatic person at work, you could be the reason your entire office saves on life insurance.Not a bad way to be everyone’s favorite coworker, right? Military and government employee discounts All federal employees and military servicemembers can get a 25% discount on long-term disability insurance from one of the Big 5 insurers.  For military members, it can be a little complicated — your insurability depends on your current orders.If you’re deploying to an active war zone, insurers typically won’t issue coverage.

But if you’re a physician treating fellow servicemembers on a military base abroad, you’re likely in the clear.  Note that this is a 25% discount, so it’s actually better than the residency discount in many cases.Spouse discount If you and your spouse both need long-term disability insurance, you could save on policies.This discount can be niche but useful since one of the Big 5 companies gives a 10% discount if your spouse also buys a policy from them.  Here’s how it works:  Sign up together and you’ll both get the 10% discount.If you already have a policy and your spouse gets one later, only your spouse will receive the discount.  You must be legally married to qualify.  And like I said, the discount is permanent, even if for some reason your marriage isn’t.

So while your relationship status may change, your savings won’t.(Hopefully having the same insurance company as your ex isn’t a dealbreaker for you.) Mental and nervous limitation discount Normally, disability insurance policies cover disabilities caused by mental health disorders and substance abuse, as long as the insured doesn’t already have a diagnosis.What determines what is and isn’t a mental health disorder? Everything in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM), published by the American Psychiatric Association (APA), falls under this category.  If you’re confident in your mental health and have no family history of related conditions, you could elect to have a 24 month limitation put on your policy for these benefits.In exchange, most insurers reduce your premiums by 10%.

In some states (like California), this limitation is mandatory for most insurers.This discount is stackable, so you can combine it with other discounts.  Association discount: Savings through professional networks If you belong to a professional organization, you may be eligible for a 5% to 10% discount on your long-term disability insurance.Many industry associations negotiate exclusive discounts with top insurers.Some examples of ones I’ve seen are the Oregon Medical Association and the American Association of Nurse Anesthetists.  Here’s what you need to know: There are many association discounts, but some are only available from certain brokers — meaning only they can offer them.  Brokers themselves can have discounts with an individual insurance company, too.

These savings are typically a reward for bringing the company a certain level of business.  SLP Insurance has one of these specific discounts, and we’re allowed to offer it to most of our clients.Unisex discount: Rare but powerful savings for women This discount is extremely rare but very worth talking about — especially for women.Typically, women pay about 50% more than men do for equivalent disability coverage (blame an insurance actuary, not me please).  However, there was a time when the companies tried to level the playing field with unisex programs, where men and women paid the same rate.  Great idea in theory.Yet, in practice, only women signed up because they paid less, while men looked elsewhere for disability coverage to avoid higher rates.

So, most unisex programs are no longer available, but I do find them once in a blue moon.  One exception currently is the state of Montana.State law mandates all disability policies signed in Montana to have unisex rates.If you’re a woman, this is a huge advantage for you and could possibly decrease your premiums more than any other discount available.Want to save on disability insurance? Let us check for discounts Not sure if you qualify for any of these discounts? An independent broker can help.

Fill out our quote form, and we’ll do the legwork for you — searching for the best rates and discounts available.If another provider offers a better deal, we’ll let you know, even if it means referring you elsewhere.Compare disability insurance quotes and save SLP Insurance will find you the best price on own occupation coverage, even if it's not with us.Fill out the form below for a quote with up to 30% discounts.