The advantage of association life or disability insurance, if any, lies in price. In the past association life and disability insurance was often less expensive, but in recent years that has not always been the case. For instance, claims experience on the various association disability plans has significantly raised the rates, such that they are now often equal to or higher than plans privately available. But most significant for more professionals is not the price of the contract, but the terms of the contract.

In a privately held contract, you specifically, as an individual and not as a member of a group, go through a detailed underwriting process. The insurer has a good understanding of your health, family history and financial situation. As a consequence, the contract of insurance has many guarantees not found in an association plan:

• The premiums are fully guaranteed. Association premiums increase annually and are never guaranteed.
• In the case of universal life, many of the investment features are guaranteed.
• In the case of disability insurance, the definition of disability will be much more extensive in an individual plan.
• In the case of disability insurance, again, the opportunity to go into the office once in a while (crucial for a professional) will exist in an individual plan.

There are many other differences as well. In many areas of life, you get what you pay for. Here, with an association plan, it is possible to pay more and get much less.