Disability Insurance

Geo depth: Class C

Disability insurance replaces a portion of income if a covered illness or injury prevents someone from working. Short-term policies typically cover a matter of months, while long-term policies can extend for years or until retirement age, depending on the policy's elimination and benefit periods.

Compare Disability Insurance rates

What is disability insurance?

Disability insurance comes in short-term and long-term forms: short-term policies typically pay a portion of income for a matter of months following a qualifying disability, while long-term policies can pay benefits for years or until a specified age, after an initial waiting period called the elimination period.

Policies vary in how they define "disabled." An own-occupation definition pays out if you can't perform your specific job, while an any-occupation definition is stricter, generally requiring that you can't perform any job you're reasonably suited for — this distinction significantly affects both price and real-world usefulness.

What affects your disability insurance cost

Typical costs vary significantly by state, provider, and personal factors — {{VERIFY: national average disability insurance premium not yet sourced}}. Rather than a single number, the factors below are what actually move your quote up or down.

Occupation and its associated risk classification
Age and health
Benefit amount (percentage of income replaced) and benefit period
Elimination (waiting) period length
Definition of disability used (own-occupation vs. any-occupation)
Whether coverage is individual or employer-provided group coverage

How to compare disability insurance providers

Price is only one part of the decision. Before choosing a provider, compare each of the following side by side:

Coverage limits, and exactly what's included or excluded
Deductible options and how a higher or lower deductible changes the premium
Financial strength ratings from an independent rating agency (e.g., AM Best, S&P, Moody's) — an indicator of an insurer's ability to pay future claims
Customer service and claims-handling reputation, including complaint-ratio data where a state Department of Insurance publishes it
Available discounts and bundling options
Confirmation that the carrier is licensed to write this coverage in your state

Related calculators

Disability Insurance Needs Calculator

Explore disability insurance by state

Coverage requirements and licensed carriers for disability insurance vary by state. Here are a few popular starting points, or browse the full state directory below.

Disability Insurance FAQ

Does my employer's disability coverage replace my full income?

Typically not — most employer-provided plans replace only a portion of base salary, and benefits paid under an employer-funded plan are often taxable, which is why some people supplement with an individual policy.

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

Short-term disability generally covers a shorter recovery window, often a matter of months, while long-term disability is designed for extended or permanent conditions and can pay benefits for years or until retirement age, depending on the policy.

Is disability insurance income taxable?

It depends on who paid the premiums. Benefits are generally not taxable if you paid premiums yourself with after-tax dollars, and may be taxable if an employer paid the premiums pre-tax. {{VERIFY: consult a tax professional for your specific situation}} — this is not tax advice.

Ready to see disability insurance options?

Compare providers side by side using the factors above, then see options tailored to your state and situation.