NY Group Life and Disability

[ashulman]

Does anyone know of any sources that justify higher rates for group life and disability in NYC metro area?

[Sunny]

9/11?

Group Health is always much more expensive in New York. There was another thread on this, but in short, too much legislative hurdles. New York is famous for that, and one of its kind.

[twig93]

In addition to the statutory crap that the State of New York imposes on anyone wanting to do business in the state, rates are higher in the NYC metro area (which does not include the entire state but does include areas in Connecticut and New Jersey) because the lifestyle is different from many other parts of the country, making it more likely for someone to die or become disabled. For example:

1) People tend to have longer commutes on more congested roads meaning they are more likely to die or become injured in accidents

2) Those long commutes may also lead to higher levels of stress which not only worsens mortality, it can also increase a person's willingness to go on disability (disability is a very subjective thing in most cases and has a lot to do with a person's desire to work)

3) There is more air pollution which could have adverse effects on a person's mortality/morbidity (a person with a mild lung condition may be able to function normally in Helena, MT, whereas the air quality in NYC may mean that they are unable to leave their house and are thus disabled from performing most jobs)

4) As Supersonic mentioned, the threat of terrorism is significantly higher in New York City than in most other places. (Not just 9/11 - there have been other instances as well, such as the earlier bombing of the World Trade Center)

These are only a few examples; I'm sure there are plenty more. Bottom line: insurance companies have found that life/disability experience is worse in the NYC metro area than other places. (If that weren't the case, some company would stop charging NYC clients extra and would thus make a fortune as all the NYC companies would switch carriers.) The above examples suggest some reasons why the experience is in fact worse.