If you become unable to work due to a serious illness or injury, disability insurance can help pay for your medical expenses.
No one expects to get sick or injured, but it happens more often than you might think. According to data from the Social Security Administration, about one in four people age 20 today will become disabled before they reach retirement age.
Social Security Disability Insurance exists, but the average benefit to a disabled worker is only about $1,483 per month, which may not be enough to cover a family’s needs.
Here, CNBC Select reviews the best companies for disability insurance (more on our methodology below).
Best Disability Insurance Companies
Guardian® Disability Insurance
Fee
The best way to estimate costs is to request a quote
App Available Policy Highlights
Guardian® is a reputable insurance company that offers a variety of disability insurance options. Benefit duration options range from 2 years to age 70. There are also many riders available to customize your policy.
Financial strength is highly rated. NAIC complaint index is very low. Online quotes are available. Insurance should be purchased through a professional. View detailsHide details
Who is it for? Guardian offers strong disability insurance options for those looking for a company that will protect their customers’ financial lives for many years and have few customer complaints.
Distinguishing Advantages: Guardian has a high rating for financial strength, meaning it’s more likely to be able to meet its ongoing financial obligations, and it also has a very low complaints index from the National Association of Insurance Commissioners.
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Breeze Disability Insurance
Fee
The best way to estimate costs is to request a quote
App Available Policy Highlights
Online insurance broker Breeze allows customers to compare rates from several major disability insurance companies using one simple form.
Compare policies from multiple major companies. You may be able to complete the process completely virtually. Not available in New York State. Show Details Hide Details
Who it’s for: Breeze is perfect for anyone who wants to comparison shop without contacting an agent. This online broker allows shoppers to fill out a form to request a quote and get a price within 24 hours.
Notable benefits: Breeze partners with several top insurance companies, including Guardian, Mass Mutual, The Standard, Assurity, and Principal.
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Assurity Disability Insurance
Fee
The best way to estimate costs is to request a quote
App Available Policy Highlights
Assurity disability insurance comes with many built-in benefits, such as premium waivers, home improvement coverage in case of total disability, and vocational rehabilitation to help you return to work. Assurity also offers a variety of riders that allow you to customize your policy to fit your needs.
Customize your policy with 10 riders. Benefits up to $6,000 for eligible applicants ages 18-55, no medical exam or income verification required. Online quotes not available. Show Details Hide Details
Who is eligible? People from a wide range of professions can get insurance through Assurity, and if you purchase a policy with a monthly benefit of less than $6,000, you may be able to get coverage without a medical exam.
Distinguishing Benefits: Those who want to buy insurance hassle-free can get excellent coverage from Assurity.
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Standard Disability Insurance
Fee
The best way to estimate costs is to request a quote
App Available Policy Highlights
Standard provides coverage that can help protect your income if you face a disability. In addition to features like guaranteed renewal, rehabilitation benefits and optional student loan coverage, Standard disability insurance offers family care benefits to help you care for a child, spouse or parent who becomes seriously ill or injured.
Several flexible riders can help cover student loan payments and more. Quotes not available online. Show Details Hide Details
Who is it for? Standard is perfect for families looking for strong coverage with a strong customer service track record.
Standout Benefits: The company’s policy incorporates several benefits, including family caregiver benefits, which assist those who need to reduce their work hours (and therefore pay) to care for an injured or ill loved one.
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Mutual of Omaha Mutual Income Solutions
Fee
The best way to estimate costs is to request a quote
App Available Policy Highlights
Mutual of Omaha’s disability insurance offers a wide range of options, from policy type to two complimentary benefits and nine riders.
A variety of options to customize your policy to suit your needsNo quotes available onlineShow detailsHide details
Who is eligible? Disability insurance from Mutual of Omaha offers a variety of options, including benefit period, maximum monthly benefit, and exclusion period, so you can choose and pay for what you need.
Distinguished Benefits: The policy has built-in benefits such as recurrent disability coverage that waives the deductible period if a recurrent disability occurs within six months, and coverage for rehabilitation services while you are receiving benefits. Optional automatic increase benefit allows you to increase your monthly benefit by 4% each year to keep up with inflation.
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Guardian has been in the insurance business for over 160 years and boasts a strong financial track record and low number of customer complaints. The company is also one of our best picks for term life insurance, making it a good option for people who want all their insurance in one place.
Grant period
2 years, 5 years, 10 years, or until age 65 or 70
Monthly benefit limit
Not mentioned
Exclusion Period
90 or 180 days
AM Best Financial Strength Rating
A++
NAIC Complaint Index
0.00, very low
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Breeze, a new and innovative insurance technology company founded in 2019, offers the convenience of purchasing and comparison shopping for disability insurance through one simple online application.
Grant period
not available
Monthly benefit limit
not available
Exclusion Period
not available
AM Best Financial Strength Rating
Varies by insurance company
NAIC Complaint Index
Varies by insurance company
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Assurity is a mutual insurance company that has been in the life insurance business for over a century, offers a variety of insurance products including life insurance and annuities, and is a certified B Corporation.
Grant period
not available
Monthly benefit limit
$500 to $20,000 depending on occupational class and income
Exclusion Period
not available
AM Best Financial Strength Rating
A-
NAIC Complaint Index
0.64, below average
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Standard was founded in 1906 as the Oregon Life Insurance Company and has been providing insurance to customers ever since.
Grant period
not available
Monthly benefit limit
not available
Exclusion Period
not available
AM Best Financial Strength Rating
a
NAIC Complaint Index
0.31, low
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Mutual of Omaha has been providing insurance for over 100 years, and is not only one of our top picks for disability insurance, but also as a top life insurance company.
Grant period
6 months, 1 year, 2 years, 5 years, 10 years, or until age 65, 67, or 70
Monthly benefit limit
$300 to $20,000
Exclusion Period
30, 60, 90, 180, 365, or 730 days
AM Best Financial Strength Rating
A+
NAIC Complaint Index
0.62, below average
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FAQ
Is disability insurance worth it?
If your family depends on your ability to earn a living, disability insurance can help you continue working toward your goals and maintain your lifestyle if you become disabled while working.
How much is disability insurance?
Long-term disability insurance typically costs between 1% and 3% of your income. So, for example, someone earning $100,000 a year will spend about $83 to $250 per month on disability coverage. The benefit amount, duration, and deductible period can affect the cost of coverage, as can your age, health, and certain occupations.
How much disability insurance do I need?
The amount of disability insurance you need will depend on your monthly income and the amount of other insurance you have through your job. You should also take into account how much savings you have.
To get a rough idea of how much you’ll need, first add up your monthly bills. Then add up the amount of income you’d continue to receive if you became disabled, such as benefits from workplace disability insurance or investment income. Subtract your monthly bills from the amount you’d continue to receive and that’s the amount you’ll need each month in disability insurance benefits.
Disability insurance can protect you from financial hardship if you become unable to work due to illness or injury. It typically costs 1% to 3% of your annual income, but it’s worth it.
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CNBC Select’s mission is to provide our readers with quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best disability insurance companies, we compiled dozens of data points on some of the top disability insurance companies. While CNBC Select earns commission from affiliate partners on many offers and links, we create all of our content without input from our commercial team or outside third parties and we pride ourselves on our journalistic standards and ethics. For more information on how we select the best disability insurance companies, see our methodology.
To determine the best disability insurance company, CNBC Select analyzed and compared several top disability insurance companies based on available policies and available options for benefit periods, maximum limits and deductible periods.
In shortlisting the best disability insurance companies, we also considered the number of riders available, distinctive unique features, and standard features included in the coverage. We looked at each company’s financial strength rating from AM Best — a measure of the company’s ability to meet its ongoing financial obligations — and the Complaint Index from the National Association of Insurance Commissioners.
From there, we categorized the recommendations by highest customer satisfaction, best comparison shopping, no medical exam required, best for families, and best customization.
Keep in mind that the premiums and coverage advertised by disability insurance companies can vary depending on each company’s policy.
Correction: An earlier version of this article incorrectly stated that Guardian Life offers short-term disability insurance to individuals.
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Editor’s note: Any opinions, analyses, reviews or recommendations expressed in this article are solely those of the Select editorial staff and have not been reviewed, approved or endorsed by any third party.