States That Require Unisex Pricing for Disability Insurance (And What It Means for You)

In most states, disability insurance companies are legally allowed to charge women higher premiums than men, reflecting the higher risk of disability that women face as a group. However, in recent years, a few states have taken steps to require unisex pricing, ensuring men and women pay the same rates for coverage.

This has implications for both male and female professions when purchasing a policy. After all, regardless of gender, you want the best deal on pricing and coverage to protect your income. 

In this guide, we’ll cover what doctors and other professionals desiring disability insurance need to know about unisex pricing laws and how unisex rates might affect your decision.

States that require unisex pricing on disability insurance

Only one state has a law that actually requires insurance companies to charge men and women the same rates for disability insurance coverage. Here’s where gender-neutral pricing is mandated:

• Montana: All insurance policies in Montana have to offer unisex pricing, regardless of the type of policy that’s being offered.

That's a small state population wise, but it's not the only state trying to bring greater pricing equality to the disability insurance market. Here's where other states stand.

States that technically require unisex pricing (but not in practice)

There's one state that requires unisex disability insurance pricing, but it also agrees to multi-state regulations that limit the law's applicability.

• Massachusetts: The Bay State was one of the first states to require gender-neutral pricing for disability insurance. This law was passed in 2019.

That might be the law, but any insurance company selling a disability insurance policy in Massachusetts can submit their policy to the Interstate Insurance Product Regulation Compact (IIPRC), which allows these companies to legally not charge unisex rates.

That effectively means that there is no broad unisex disability insurance pricing available in Massachusetts, even though the law would make one think it's required across the board.

States that are trying to require unisex pricing on disability insurance

One of the most populous states in the country is trying to require unisex disability insurance pricing.

• New York: Following Massachusetts’ lead, New York tried to enact a similar law in 2023, requiring all insurers selling disability insurance in New York to use unisex pricing for disability coverage.

However, this law has not made it to the governor's desk.

New York is not a “compact state,” which means if a unisex pricing law passed, there might be Montana style unisex pricing in New York.

However, currently, there is not a broad based requirement to require unisex pricing in New York, although there could be one day soon.

So how does living in, moving to, or leaving one of these states impact when you should buy coverage? Let’s break it down.

What to expect if you live in a unisex pricing state

If you live in Montana (or New York if they passed a unisex pricing law) — and you have no plans to move — your decision about disability insurance comes down to one thing: whether to buy a policy or not.

If a state legally mandates unisex pricing, you won’t be able to time your purchase based on a move to or from these locations.

So, in the case that you’re a lifelong Montana resident, then unisex pricing mandated by law would, in general, cause men to pay more for disability insurance and women to pay less.

Related: Best Disability Insurance for Physicians: The “Big 5” for Own-Occupation Coverage

What if you’re moving to or from a state with unisex pricing rules?

If you’re a female physician moving from Texas to Montana, it may be worth waiting until you establish Montana residency to buy your disability insurance. Since Montana mandates unisex pricing while Texas does not, you may be able to secure a lower premium in Montana than you would in Texas.

For male physicians making the same move, the opposite is true — you’d likely save money by purchasing a policy before leaving Texas, where you may pay less due to gender-based pricing allowing lower premiums for males.

The same strategy applies in reverse. If you’re moving from Montana to Texas, female physicians should lock in coverage before leaving Montana, while male physicians would benefit from waiting until after the move to Texas.

If New York passed a true unisex pricing law, then you could substitute Montana for New York.

Moving states is very common when graduating from med school or training or taking your first or second attending job. It’s highly likely that most medical professionals would have the opportunity to game the system on unisex pricing laws to their advantage, and it’s completely legal to do so. You’re simply taking actions that benefit you most as an individual based on the laws in each state.

Why waiting for unisex pricing could cost you

While unisex pricing laws can sometimes work in your favor, delaying your disability insurance purchase could mean missing out on valuable discounts.

For instance, residency and fellowship programs may offer special discounts or policies that are guaranteed to be offered to you (Guaranteed Standard Issue, or GSI) policies. These ensure coverage without medical underwriting but may not be available once you leave your program or move to a new state.

And even though there has been momentum in recent years to require unisex pricing for disability insurance, the reality is only one small population state (Montana) actually requires it in a broad based way as of this article's publication.

That means other discounts and getting a policy in place early in your career to protect from risk of becoming disabled should be the determining factor of when to buy a policy.

Ideally, you would work with an independent insurance agency to compare coverage choices (SLP Insurance is one choice). We work for you, and we want you to feel comfortable getting quotes from other sources, as well.

The goal is to get you the cheapest price for the coverage you need. Unisex pricing laws help in rare circumstances, but they usually do not make much of a difference due to other discounts or coverage options out there and the limited footprint where these laws apply.

Submit a quote request below to find out if these laws will help — or hurt — your insurance costs based on where you live (or where you’re moving).