The Insurance Buying Guide: Other Insurance

Another factor that impacts how much a disability insurance company will charge for coverage is how much -- and what kind -- of other insurance a person carries.

Once it has obtained accurate information regarding the amount, elimination period and benefit period of other coverage you carry, the company will price its policy accordingly.

The company's goal in this process is to prevent overinsurance. The company also wants to make sure that it generates enough premium income from the policy to cover -- on average -- a maximum benefit claim.