How Much Does Long-Term Disability Insurance Cost?

If you rely on your income to pay your bills, support your family, and enjoy your lifestyle, you need to protect it from the unexpected.

Accidents and illnesses can happen to anyone, and they can prevent you from working for months or even years.

That’s where long-term disability insurance comes in.

How much does long term disability insurance cost.
Photo courtesy: Bross & Frankel, P.A.

Long-term disability insurance is a type of insurance that pays you a monthly benefit if you become disabled and unable to work for a long period.

It can help you cover your essential expenses, such as your mortgage, utilities, groceries, and medical bills, while you focus on your recovery.

But how much does long-term disability insurance cost, and how do you get it? In this article, we’ll answer these questions and more, so you can make an informed decision about your financial security.


How Much Does Long-Term Disability Insurance Cost?

The cost of long-term disability insurance depends on several factors, such as your age, health, income, occupation, benefit amount, benefit period, elimination period, and policy features.

Generally, the higher your income and the longer your benefit period, the more you’ll pay for your policy.

According to the Council for Disability Awareness, the annual price for a long-term disability insurance policy generally ranges from 1% to 3% of your annual income. For example, if you make $100,000 a year, you can expect to pay between $83 and $250 a month for your policy.

However, this is just an estimate, and your actual cost may vary depending on your situation and the insurance company you choose.

To get an accurate quote, you’ll need to compare different policies and options from multiple insurers.

How to Get Long-Term Disability Insurance

There are two main ways to get long-term disability insurance: through your employer or on your own.

Employer-Provided Long-Term Disability Insurance

Some employers offer long-term disability insurance as part of their employee benefits package.

This can be a convenient and affordable way to get coverage, as your employer may pay part or all of the premiums, and you don’t have to go through a medical exam or underwriting process.

However, employer-provided long-term disability insurance also has some drawbacks, such as:

  • Limited coverage: The benefit amount may be capped at a percentage of your salary, usually 60% or less, and it may not include bonuses, commissions, or other income sources. Additionally, the benefit period may be shorter than you need, typically ending at age 65 or earlier.
  • Taxable benefits: If your employer pays the premiums, the benefits you receive will be taxed as income, reducing your net income.
  • Lack of portability: If you leave your job, you may lose your coverage, or you may have to pay higher premiums to keep it. You may also lose your coverage if your employer changes or cancels the plan.

READ MORE:Who Pays for Your Health Care When You Can’t Work? A Guide to Long-Term Disability and Health Insurance

Individual Long-Term Disability Insurance

Another option is to buy long-term disability insurance on your own, either directly from an insurance company or through an independent broker or agent.

This can give you more control and flexibility over your coverage, as you can choose the benefit amount, benefit period, elimination period, and policy features that suit your needs and budget.

Some of the advantages of individual long-term disability insurance are:

  • Adequate coverage: You can get a benefit amount that matches your income and expenses, and you can choose a benefit period that lasts until your retirement age or longer. You can also add riders, such as cost-of-living adjustments, residual benefits, or own-occupation definitions, to enhance your coverage.
  • Tax-free benefits: If you pay the premiums with your own money, the benefits you receive will be tax-free, increasing your net income.
  • Portability: You can keep your coverage as long as you pay the premiums, regardless of your employment status or changes in your health.

Of course, individual long-term disability insurance also has some disadvantages, such as:

  • Higher cost: You’ll have to pay the full premiums yourself, and they may be higher than employer-provided premiums, depending on your age, health, and policy options.
  • Medical underwriting: You’ll have to undergo a medical exam and answer health questions to qualify for coverage, and you may be denied or charged more if you have pre-existing conditions or risky hobbies.


Long-term disability insurance is a vital part of your financial plan, as it can protect your income and your family from the devastating effects of a disability.

However, not all policies are created equal, and you need to shop around and compare different options to find the best one for you.

If you need help finding the best long-term disability insurance for you, you can use free disability insurance calculator to get coverage recommendations and cost estimates.

You can also contact our licensed experts, who can answer your questions and guide you through the process. Don’t wait until it’s too late – get your long-term disability insurance today and secure your future.

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