Compare quotes and get disability insurance right

• Coverage amount: The amount of money your insurer pays to you if you become disabled. Higher coverage amounts result in higher premiums.
• Benefit period: The amount of time you will receive benefit payments. Longer benefit periods result in higher premiums. The most cost-effective benefit period is five years, but a benefit period that extends to age 65 is the most common.
• Elimination period: How long after you become disabled before you begin receiving benefits. Longer elimination periods result in lower premiums. The most cost-effective elimination period is 90 days.
• Built-in policy features: Some features like own-occupation coverage may increase the cost of the policy.
• Riders: If you add on additional features that aren’t included in your policy, you will pay higher premiums.

Learn more about how much disability insurance costs.

The best disability insurance company for you largely depends on the policy cost and features that work for your individual situation. Your age, health, and what you do for work will have the biggest impact on how much you pay for disability insurance, but every insurer views each application differently. Some insurance companies are better for certain professions than others, offering the best prices or most flexible options, while others may not offer you affordable rates.

Getting quotes from multiple companies is the best way to find the right insurer who will offer you the most affordable rates — and when it comes to getting you the best coverage, Policygenius has got your back. Our agents will work with you for free to find you a policy that suits your needs at the most competitive price.

Check out our full breakdown of the best disability insurance companies in 2021.

Most employers offer short-term disability insurance, but independently buying a long-term disability insurance plan will provide more robust coverage.

What’s the difference between long-term and short-term disability insurance?

The main difference between the two products is how long they last. Short-term disability insurance lasts for a shorter period of time, usually starting at a few months and no longer than a year. Long-term disability insurance, on the other hand, can last until your retirement. Your long-term disability insurance will not begin until any short-term disability benefits have been exhausted.

Private short-term policies are available from our partner LifePreserve, but short-term disability insurance is usually the most cost-effective through an employer. Long-term disability plans are typically bought through a broker and offer the most comprehensive coverage.

Learn more about all the types of disability insurance.

An unexpected disability can happen to anyone. Accidents happen on and off the job, and even the healthiest people fall ill. Because of this, it’s critical that anyone who would not be able to maintain their standard of living if they lost their income gets disability insurance. However, even those with substantial savings should consider buying a policy.

According to Policygenius data, the average length of a disability for someone in their 30s is 32 months — that’s almost three years of lost wages. For people in their 40s, that number jumps to 42 months. Getting a disability insurance policy ensures that you don’t have to deplete your savings or endure financial devastation due to a temporary disability, protecting your present and future financial stability.

Once you’ve decided what type of disability insurance you want to buy, the process takes around four to six weeks.

1. Calculate how much coverage you need: A typical benefit amount is around 60% of your gross income for long-term disability insurance. You’ll also choose a benefit period, usually two, five, or ten years, or until retirement. We recommend five years because the average disability lasts three years.

2. Decide on your elimination period: Periods are typically 30, 60, 90, 180, or 365 days for long-term policies and two to four weeks for short-term disability insurance.

3. Consider policy add-ons: Customizations called riders can make your coverage more comprehensive, like an own-occupation rider, which ensures your policy will pay out if you can’t work in your designated job, even if you are able to work elsewhere in another capacity.

4. Get quotes: Every company weighs risk differently. Compare quotes from different insurers to find competitive rates.

5. Fill out an application: This form requires basic personal, health, and financial information.

6. Go through underwriting: This process includes a phone interview, income verification, and medical exam. The insurer uses this time to assess the risk of insuring you and set your premiums.

7. Sign and pay for your policy: After the insurance company issues a policy and you’ve read and agreed to the terms, sign the paperwork and pay your premium to begin your coverage.

Learn more about how to buy disability insurance.

If you decide that disability insurance isn’t for you, there are some substitutes to short-term and long-term disability insurance:

• Social Security disability insurance (SSDI)
• Self-funding via an emergency fund
• Workers' comp
• Relying on friends and family for financial support

However, these are imperfect options that may not be feasible for covering the cost of a long-term disability. For example, Social Security disability insurance is difficult to qualify for — to get benefits, you must prove that you cannot work in any job. Additionally, the benefits offered are usually too low for most people’s needs.

Meanwhile, Workers’ Comp only pays out if you are injured on the job, but a majority of disabilities occur outside of the workplace. Purchasing a standalone long-term disability insurance plan is the best way to ensure you don’t lose your income if you become disabled.