Compare Disability Insurance Quotes

Disability insurance replaces a portion of your income — typically 60–70% — if you become unable to work because of illness or injury. It's one of the most overlooked coverages in personal finance: most workers protect their cars and homes but leave their single largest asset (future earning power) uninsured.

Two flavors exist: short-term disability (STD) pays for 3–6 months of recovery, and long-term disability (LTD) pays for anywhere from 2 years to retirement age depending on policy terms.

Individual long-term disability insurance typically costs 1–3% of your annual income. A 35-year-old earning $85,000 can expect to pay roughly $1,200–$2,500 per year for a policy that replaces 65% of income until age 65.

The price depends on:

• Occupation class. Desk jobs are cheapest; surgeons, dentists, and trades run 2–4x higher.
• Benefit period. "To age 65" costs more than 5-year or 10-year benefit periods.
• Elimination period. 90-day waiting period is standard; 180-day cuts premium ~15%.
• Definition of disability. "Own occupation" costs more than "any occupation" but is dramatically more protective.
• Riders. Cost-of-living adjustment, future-purchase option, and residual disability riders each add 5–15%.

This is the single most important policy detail. The definition determines when benefits start paying:

• "Own occupation" (best) — pays benefits if you can't perform the duties of your specific occupation, even if you could work in another field. A surgeon who develops a hand tremor collects benefits even if she could still teach medical school.
• "Any occupation" (weakest) — only pays if you can't do any job at all, based on your education and experience. Much harder to qualify for benefits.
• "Modified own occupation" (middle ground) — pays own-occupation benefits for a period (usually 2–5 years), then shifts to any-occupation.

Pay the 10–20% premium for own-occupation if you work in a specialized field. For generalist roles, modified own-occupation is usually enough.

The ceiling is usually 60–70% of your pre-tax income. Carriers cap coverage at that level because paying 100% removes the incentive to recover and return to work.

If your employer already provides group LTD, check two things: what percentage of income it replaces (often just 40–60% of base salary, excluding bonuses), and whether the benefit is taxable (group benefits paid by an employer are usually taxed; individual policies paid with after-tax dollars are tax-free). Most professionals supplement group coverage with an individual policy that stacks on top.

Disability underwriting is stricter than life insurance — carriers carefully evaluate occupation, income, and medical history. The process:

1. Decide between group (through employer or professional association) and individual (portable, customized, more protective).
2. For individual: quote 3 carriers with identical benefit amount, elimination period, benefit period, and definition of disability.
3. Complete a detailed application covering health, occupation, and income.
4. Schedule a medical exam if required (most individual policies need one).
5. Underwriting decision typically takes 4–8 weeks.

Apply while you're young and healthy — rates lock in at issue-age and your occupation class is set at application.