What typically happens to the premium cost for longer benefit periods in a disability policy?

In a disability policy, when the benefit period is extended, the premium cost typically tends to increase. This is because longer benefit periods represent a higher risk for the insurer. If a policyholder becomes disabled, the insurance company may have to pay benefits for a significantly longer duration, which increases the potential payout. To compensate for this increased risk, insurers adjust the premium rates accordingly.

Additionally, longer benefit periods generally indicate that the insured is seeking coverage for a more extended time frame, reflecting a more significant financial commitment from the insurer. As a result, the associated premium costs are usually higher to ensure that the insurer can adequately cover the potential long-term payouts required if the insured event occurs. Thus, it is reasonable to expect that as the benefit period increases, the premium costs will also increase to align with the increased financial exposure the insurer faces.