We propose the finest items through an independent evaluation process, and advertising does not influence our recommendations. We may be compensated if you visit one of the partners we recommend. For more information, see our advertiser disclosure. Long-term disability (LTD) insurance replaces your income if you are injured or sick and unable to work. Unlike short-term disability insurance, which can start as soon as two weeks, long-term disability insurance is designed for more severe injuries or illnesses and kicks in once your short-term benefits have expired. Most long-term plans have a 180-day waiting period, but some start as soon as 90 days after you file a claim for your injury or sickness. According to the latest recent estimate, around 35% of the working population has access to long-term disability insurance. Employers frequently share the expense, so this should be the first place you look to see if you're covered. You can still buy disability insurance from a private source if your employer doesn't supply it. To find the best long-term disability insurance companies, we looked at nearly two dozen leading insurers, weighing financial soundness, consumer evaluations, and the depth and breadth of their offers.
The 6 Best Long-Term Disability Insurance of 2022
Best Overall: Northwestern Mutual Runner-Up, Best Overall: Guardian Life Most Affordable: Breeze Best Service: MassMutual Best for Small Business Owners or Self-Employed: Assurity Best for Coverage Options: Mutual of OmahaNorthwestern Mutual
S&P Global Market Intelligence ranked Northwestern Mutual first for long-term disability coverage based on premiums. Northwestern Mutual, thus, sells more long-term disability insurance than any other company in the United States. AM Best gives Northwestern Mutual an A++ grade based on the company's financials. The A+++ rating is self-evidently exceptional. Our top choice for long-term disability insurance is the firm, which has been around since 1857 and has a lengthy track record of financial health. Northwestern additionally offers specific coverage for doctors and dentists and ordinary disability insurance. This is significant since doctors and nurses are high-paid professionals dealing with high-stakes situations (such as patients' health). They may need extra insurance if they lose their income. Parents who do not work a traditional full-time job and instead remain at home with their children are also covered by Northwestern. The coverage compensates if a policyholder is wounded or ill and needs to hire help to care for their children as a result. Many carriers do not offer these services, which distinguishes Northwestern Mutual from the competition.Guardian Life
Guardian Life is a powerful corporation that was founded in 1860. It has carved out a niche for itself in both life and disability insurance. Guardian is still running strong, with $8.5 billion in capital and $1.6 billion in operating income, and is breaking records. Berkshire Life Insurance Company of America, another significant insurer with an A++ rating from AM Best, underwrites Guardian's disability plans. The company's "own occupation" coverage is one of the best features of Guardian disability insurance. That implies your policy will cover a percentage of your income if you cannot continue working in your current profession or career, even if you can do alternative jobs. Guardian issues policies for two to twenty years and provides disability coverage up to age 65. (or older, depending on your policy). Guardian is runner-up on our list of best long-term disability businesses because of financial stability, a superb service record, and the opportunity to acquire a quick quote online. There are other disadvantages. For example, it does not write as much disability insurance as Northwestern. Berkshire Hathaway, rather than internal underwriting, underwrites some of its coverage.Breeze
Breeze stands out as our list's most affordable long-term disability insurance, with policies starting at just $9 per month. Breeze's online-only quoting system, which Assurity Life Insurance Company underwrites, is a breeze. In as little as 15 minutes, you may write your policy with this company. This is partly because it may be completed online and backed up by cutting-edge data (as one of a new breed of "insurtech" companies.) You may not even require a medical checkup if you fulfill certain age and benefit requirements. For example, unless your coverage is worth more than $4,000 per month, you won't need a checkup if you're under 50. If your coverage surpasses $1,500 per month and you're between the ages of 56 and 60, you'll require an exam. You can renew your coverage until age 67 if you buy it before age 62. At the time of our last check, Assurity has an A- rating from AM Best, indicating a strong track record and financial stability. 6 Breeze is a new product on the market, but it has received positive customer feedback. Breeze is the only insurance company on our list of best long-term disability insurance providers because of its excellent customer service, reasonable costs, and speedy online quotations.MassMutual
MassMutual has the best track record for customer support, earning the title of best service on our Best Short-Term Disability Companies list and this list for long-term disability insurance. It has been in operation since 1851, indicating its financial stability. Mass Mutual also has an A++ rating from AM Best, giving policyholders confidence that claims will be paid when filed. On its website, MassMutual offers a wealth of financial resources and information. It has also received a lot of positive feedback from customers. Both of these characteristics demonstrate how much it values its clients. The DI insurance calculator can assist you in determining how much coverage you require. MassMutual's long-term disability insurance options compare favorably to those offered by the other top providers on this list. Depending on your policy, the corporation offers benefit durations of two, five, or ten years, up to the age of 65 or 67. Waiting periods start at 60 days, and coverage is portable, so you can keep your policy even if you change jobs.Security
If you're self-employed, long-term disability insurance is even more crucial. After all, your company may not be able to recover from the loss for several months, if not years. Having a long-term disability policy in place means you will be paid even if your business or freelancing work is not profitable. Because of the high coverage limits and breadth of alternatives for business owners, we chose Assurity as the best option for small business owners or self-employed persons. If you are self-employed, though, your coverage options may be limited. Security disability insurance is also available through Breeze, a top-rated insurance company. Assurity, however, allows you to combine your long-term disability policy with other company insurance coverage. These features, combined with large coverage limits, may make it an excellent solution for high-earning business owners. Benefit periods of one, two, five, or ten years are available from Assurity, and you can renew your coverage until you're 67. The monthly coverage amounts range from $500 to $20,000, making it ideal for high-earning business owners and solitary entrepreneurs. If you cannot work, your Assurity insurance for business owners, also known as business overhead expense (BOE) coverage, will cover your lease, payroll, and other business-related expenses. Because of these qualities, it ranks first on our list of the best long-term disability insurance for business owners and self-employed people.Mutual of Omaha
AM Best has given Mutual of Omaha, founded in 1909, an A+ rating. It is well-known for its excellent customer service. And various customizable long-term disability coverage alternatives. Because of these qualities, it ranks among the finest businesses for DI insurance coverage. Depending on your earnings, monthly benefits can reach $12,000. You can renew your coverage until you're 67 years old, and policies are portable, meaning they'll stay in force even if you move jobs as long as you keep paying your premiums. If you're able to work part-time, you may be eligible for partial and supplementary benefits. A Hospital Confinement Indemnity Benefits Rider is one of the optional benefit riders that pay up to $500 per day if you're hospitalized and up to $1,000 if you're in an intensive care unit. After ten years, the Return of Premium Benefit Rider reimburses up to 80% of your premiums, minus claims paid. Other companies may provide these value-added riders, but they aren't widely marketed; thus, Mutual of Omaha comes out on top for DI policy coverage possibilities.What Is Long-Term Disability Insurance?
Should you become critically ill or wounded, long-term disability insurance companies can provide you with a source of income for six months or longer. You pay into your insurance through monthly premiums, just like other insurance policies, and the insurance provider pays your benefits when you file a legitimate claim.What's the Difference Between Short- and Long-Term Disability Insurance?
Benefits for long-term incapacity can extend up to ten years. If you're chronically disabled or sick, your long-term disability insurance can help you augment your Social Security disability benefits. This pair will help you keep the same quality of life you had before your illness or disability. Short-term disability insurance, however, is intended to provide you with enough funds to live on while you recuperate or until your long-term disability insurance kicks in.What Does Long-Term Disability Insurance Typically Include?
Depending on your coverage, long-term disability compensates a portion of your salary or the full amount of your lost income. Some policies, like Mutual of Omaha, may also provide:- Extra funds for hospitalization
- Lump-sum payout if you die while disabled
- Extra funds to cover inflation while you're disabled
- The lump-sum payout for a critical illness
- Medical expense reimbursement for accidents
- Rehabilitation services
What Does Long-Term Disability Insurance Typically Exclude?
Long-term disability, like short-term disability, excludes injuries suffered on the job. These claims should instead be paid through workers' compensation. Long-term disability insurance may include more exclusions or restrictions than short-term disability insurance. The following are examples of DI insurance exclusions: Pre-existing ailments Limitations of the mind (Benefit payments may be limited to two years if your impairment is caused by a disorder recognized in the Diagnostic and Statistical Manual of Mental Disorders.) Depression, anxiety, stress, and dementia are examples of these conditions.)- Alcohol and substance abuse
- Acts of war
- Suicide attempts
- Pregnancy
What Are the Typical Costs of Long-Term Disability Insurance?
The cost of long-term disability insurance varies depending on the salary you want to replace if you get hurt or sick. If you earn $50,000 per year, you might buy a policy for as little as $500 per year, $41 per month, or less than $2 per day. Your rate is also affected by other characteristics such as your age, gender, and occupation. You should anticipate paying between 1% and 4% of your annual salary if you wish to replace your entire income.Is Long-Term Disability Insurance Worth It?
Long-term disability insurance and life insurance provide the best value in an insurance policy. Look for a policy that has "own occupation" coverage, which means you can file a claim if you cannot work in your chosen area despite being capable of performing other tasks. Filing for long-term disability is generally better than delving into your savings or emergency fund. The money you get through LTD is tax-free (unless you pay premiums with pre-tax monies through your employer). Put another way; you don't have to pay taxes on your Social Security benefits. You may have to pay premiums with pre-tax cash deducted immediately from your paycheck if you acquire the policy via your employer.Do I Need Disability Insurance If My Employer Provides Workers' Comp?
Worker's compensation is a state-mandated, employer-funded benefit that most businesses are obligated to provide in all states (excluding Texas), but it does not replace long-term disability insurance. Workers' compensation covers only work-related injuries or illnesses on the job. LTD, however, can cover work-related or non-work-related injuries or illnesses. It might be easier to use your LTD benefits rather than trying to prove your workers' comp case in court unless the injury occurred obviously at work.How We Chose the Best Long-Term Disability Insurance Companies
To find the finest private, long-term disability coverage, we looked at around a half-dozen of the most well-known and a few younger insurance firms. To identify the best solutions for your needs, we looked at their financial strength, policy flexibility, customer service, and cost projections, where available.