Best disability insurance companies of July 2024

Mutual of Omaha has the best long-term disability insurance in 2024. It offers monthly benefits up to $20,000, short elimination periods, lengthy benefit periods and both long and short-term disability coverage.

If you buy the right disability insurance policy, it can help replace part of your income while you’re unable to work, sometimes for years. We analyzed dozens of disability insurers to determine the best ones. Learn more about Mutual of Omaha and other insurers that made our list of the best long-term disability insurance companies.

Top-rated disability insurance companies in 2024

• Mutual of Omaha: Best disability insurance.
• Ameritas: Best for discounts.
• Assurity: Best for high-risk occupations.
• MassMutual: Best for policy customization.
• Principal Financial Group: Best for simplified underwriting.

Best disability insurance companies of July 2024

Best disability insurance

Mutual of Omaha

Blueprint Rating

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AM Best rating

A+

Quotes available online

Yes

Plan name

Mutual Income Solutions

Pros and cons

Pros

• Benefit periods of up to 70 years.
• 30-day elimination period available.
• Offers both short- and long-term disability insurance.
• Benefit period as short as 6 months available.

Cons

• Maximum monthly benefit is only $20,000, which is lower than some other insurers we reviewed.

Riders available

There is an added cost for the following optional benefits. Rider benefits may vary by state.

• Extended regular occupation. Extends current occupation coverage for the length of the benefit period.
• True regular occupation. This policy extends regular occupation coverage for the duration of the benefit period with full monthly benefits if you are currently employed but can no longer work in your original occupation.
• Residual disability. Pays a percentage of your monthly benefit if you become partially disabled.
• Return of premium. Every 10 years, 50% to 80% of the premiums you have paid, minus any claims paid, could be returned if you have not received disability insurance benefits.
• Cash value benefit. Provides a percentage of all premiums paid for a policy and riders, minus any claims paid.
• Mental or nervous and substance abuse extension. Extends mental or nervous and substance abuse coverage for the duration of the benefit period.
• Catastrophic disability benefit. Pays an additional benefit amount if you are diagnosed with a catastrophic disability and can no longer perform at least two daily living activities without assistance.
• Cost-of-living adjustment. Increases your benefit annually when receiving benefits.
• Social insurance supplement. Lowers your premium if the benefit you receive is the amount of monthly income you purchase, less any Social Security benefits provided.

Why it’s the best

Mutual of Omaha has the best disability insurance among the providers we analyzed. Mutual Income Solutions, its long-term disability income policy, offers up to $20,000 in disability income for qualified applications aged 18 to 61. Benefit periods range starts at six months, but you can choose a policy that lasts until you reach age 70. Waiting periods from 30 to 730 days are available. 

You can further customize your long-term disability insurance by selecting a non-cancelable or guaranteed renewable coverage and choosing from two optional benefits available at no cost: The automatic increase benefit, which increases your benefit by 4% each year, or the future insurability option, which increases your monthly benefit every three years after polity purchase.

Best for discounts

Ameritas

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A

Quotes available online

No

Plan name

DInamic Cornerstone Income Protection

Pros and cons

Pros

• Variety of discounts available to help lower coverage costs.
• Offers up to $30,000 in monthly benefits.
• Elimination period as short as 30 days.
• Reduced elimination period for each year you don’t file a claim.

Cons

• Does not offer short-term disability.
• Maximum benefit period age is 67.
• No online quotes available.

Riders available

There is an added cost for the following optional benefits. Rider benefits may vary by state.

• Automatic increase. Benefit increases by 4% annually for five years.
• Basic or enhanced residual disability. Protects income if you’re partially disabled and can return to some level of work.
• Catastrophic disability. Adds additional coverage if you suffer a catastrophic disability and need assistance to complete certain daily living tasks.
• Cost of living adjustment. Increases benefit after a year of disability by either 3% (simple) or 6% (compound).
• Future increase. Provides additional protection to account for income increases over the course of your career.
• Social insurance substitute. Fills in income gap while waiting to qualify for Social Security or worker’s compensation.
• Student loan repayment. Provides additional coverage to reimburse student loan payments.

Why it’s the best

Ameritas offers several ways to lower the cost of coverage, making it the best disability insurance company for discounts. Discounts are available for a variety of individuals, including those who have association and affinity memberships, apply for coverage online or follow certain academic tracks, such as medical and dental interns and residents.

The DInamic Cornerstone Income Protection plan from Ameritas provides up to $30,000 per month for eligible income earners. You can choose a benefit period from two years or until age 67. The plan has elimination periods as short as 30 days for policies of one to five years and 90 days for policies with longer benefit terms. Ameritas rewards good health by shortening the elimination period by two days for each year you don’t file a claim, up to 30 days. 

The DInamic Cornerstone Income Protection plan also has two very valuable free benefits. If you get injured and require medical treatment but aren’t disabled, Ameritas will advance $500 of your monthly benefit. You also get the COBRA premium benefit, which will provide up to $1,000 monthly for COBRA health insurance premiums if you’re let go from your job because of your disability.

You can also add riders, such as the future increase option, automatic increase, catastrophic disability or student loan repayment (up to $2,500 per month) rider.

Best for high-risk occupations

Assurity

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AM Best rating

A-

Quotes available online

Yes

Plan name

Century+

Pros and cons

Pros

• Provides high-risk workers, a hard to insure demographic, up to $10,000 in long-term disability coverage.
• Conditionally renewable to age 75.
• Variety of elimination periods available, from 30 days to 1 year.

Cons

• Does not offer short-term disability insurance.
• Coverage maximum is $20,000, lower than some insurers we evaluated.
• Maximum issue age is 60, lower than several insurers in our analysis.

Riders available

There is an added cost for optional benefits. Rider benefits may vary by state.

The Century+ long-term disability insurance plan can be customized with the following riders:

• Automatic benefit increase rider. Increases benefit amount by 5% each year until benefit amount doubles.
• Catastrophic disability benefit rider. Extends benefit if you are catastrophically disabled and total disability benefit has been paid.
• Critical illness benefit rider. Pays a lump-sum benefit the first time you are diagnosed with a critical illness, such as cancer, a heart attack, stroke or kidney failure.
• Guaranteed insurability rider. Allows you to increase disability benefits within a certain time frame.
• Non-cancelable rider. Guarantees that you can renew your policy at the same rate until age 65.
• Own occupation rider. Extends coverage for disabilities that prevent you from working in your own occupation from 2 to 5 years or from 10 years to age 65 or 67.
• Residual disability benefit rider. Pays a monthly benefit if a disability prevents you from performing all the duties required by your job.
• Retroactive injury benefit rider. Pays out a lump-sum benefit at the end of the elimination period if a disability is the result of an injury.
• Return of premium benefit rider. Returns some or all of premiums paid, minus any claims, if you surrender your policy, your policy lapses, you turn 65 or you die.
• Supplemental disability income rider. Works alongside social insurance programs to offset benefits dollar for dollar.

Why it’s the best

Assurity Life Insurance Company’s Century+ plan is the best disability insurance for high-risk occupations, according to our analysis. It offers workers in risky trades, like carpenters, electricians, farmers and mechanics, up to $10,000 in long-term disability insurance benefits. Depending on your age and benefit amount, you may qualify for coverage without a medical exam.

Eligible individuals between 18 and 60 can apply for the Century+ plan. Depending on your occupational class, you can choose a benefit period from one to 10 years or up until you are 65 or 67 years old. The policy is guaranteed renewable up to age 65 or 67 and conditionally renewable to age 75. 

You can further customize your policy with a long list of riders offered, such as critical illness benefit, residual disability, retroactive injury, return of premium and supplemental disability income riders.

Best for disability insurance for customization

MassMutual

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AM Best rating

A++

Quotes available online

No

Plan name

Radius Choice

Pros and cons

Pros

• Extensive list of riders to customize coverage.
• Up to $30,000 in coverage in most states.
• Issued to age 64, one of the later issue ages among policies analyzed.

Cons

• Shortest elimination period is 60 days, 30 days longer than other policies analyzed.
• No short-term disability option.
• Online quotes are not available.

Riders available

There is an added cost for the following optional benefits. Rider benefits may vary by state.

• Automatic benefit. Allows for an annual, automatic purchase of benefits and a 3% increase.
• Benefit increase rider. This rider lets you purchase additional coverage every three years as long as you financially qualify, are actively working and aren’t disabled. It requires an application every three years.
• Catastrophic disability benefit rider. Provides up to 100% of pre-disability earned income if the insured is diagnosed with a presumptive disability, qualifies under the definition of total disability, can’t perform two out of six activities of daily living or has a severe cognitive impairment.
• Cost-of-living adjustment rider. Increases benefit by a compound 3% for policies with a benefit period longer than a year.
• Extended partial disability benefits rider. Provides a benefit if a disability leads to reduced occupational capacity that results in a 15% or more reduction of income.
• Future insurability option rider. Allows you to purchase additional coverage as your income increases.
• Group supplement disability benefits rider. Provides additional return-to-work benefits to supplement group disability coverage during a partial disability.
• Own occupation rider. Provides a benefit if a sickness or injury prevents you from continuing work in your usual occupation.
• RetireGuard. Helps replace employee and employer match contributions that would have been made to a defined contribution planned prior to a diagnosed disability.
• Social insurance rider. Provides disability benefits without duplicating Social Security or other social insurance benefits.
• Short-term disability benefits rider. This rider provides short-term disability benefits while you’re waiting for long-term disability with a 180-day or longer waiting period or for an employer’s salary continuation plan.
• Student loan rider. Helps you cover student loan payments if you’re totally disabled.

Why it’s the best

MassMutual’s Radius Choice is the best disability insurance for customization. It offers a list of riders that you can add to your policy to extend coverage to address multiple financial protection needs. 

The Radius Choice policy offers 12 riders you can add to your policy to make it fit your specific disability insurance needs. These riders include coverage for benefit increases, catastrophic disability, cost of living adjustment (COLA), future insurability, short-term disability insurance and repaying student loan debt while totally disabled.

This disability insurance plan is available to individuals 18 to 64 (60 in Florida). The Radius Choice policy is highly customizable, with a range of waiting periods from 60 to 730 days and benefit periods from two years or when you hit age 70.

As long as you make payments, your policy cannot be canceled until you reach 65. After that, you can renew the plan annually until you reach 75 and meet certain conditions. 

Best for simplified underwriting

Principal Financial Group

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AM Best rating

A+

Quotes available online

Yes

Plan name

Protector

Pros and cons

Pros

• Simplified underwriting process that only requires you to answer a few questions and complete a telephone interview.
• Non-cancellable and guaranteed renewable until 65 or the end of the policy, whichever is later.
• Coverage up to age 70.

Cons

• Shortest elimination period is 60 days, longer than some other insurers in our analysis.
• No short-term disability option.
• Maximum issue age is 60, shorter than that offered by some insurers we evaluated.

Riders available

There is an added cost for the following optional benefits. Rider benefits may vary by state.

• Annual increase. Benefit increases by a compounded 3% each year for the first 20 years or until you reach the age of 50.
• Maximize your benefit. Ability to increase your benefit without a medical exam in the first three years to account for increased income. After three years and up to 20 years or the age of 50, you can increase your benefit if you experience a significant life event, such as marriage or the birth of a child.
• Cost-of-living adjustment. Adjust your benefit if you’re disabled, by 3% or 6% cost-of-living compounded annually.
• Capital sum benefit. If you lose the use of a hand or foot or lose sight in one eye without expectation of recovery, you receive a one-time, lump-sum benefit equal to 12 times your monthly benefit.
• Catastrophic disability benefit. Receive an extra monthly benefit if you become catastrophically disabled and are unable to perform two or more activities of daily living.
• Death benefit. A lump-sum death benefit is received by your beneficiary if you die while receiving disability.
• Supplemental health benefit. Receive a one-time, lump-sum benefit equal to six times your monthly benefit if you are disabled for 90 days due to coronary artery bypass surgery to resolve two or more blocked arteries, are diagnosed with certain cancers or have a stroke that results in neurological deficits.
• Presumptive disability benefit. Receive monthly benefit payments if you lose your ability to speak, hear, see in both eyes or use a hand(s) or foot/feet, even if you’re still able to work.
• True own occupation definition of disability. Receive benefits if you’re unable to return to your current occupation, even if you return to work in a new occupation.
• Residual disability and recovery benefit. If you’re residually disabled and able to work but suffered an income loss of 15% or more, you’ll receive a benefit proportionate to your loss of income.
• Short-term residual disability benefit. If you’re residually disabled and suffered an income loss of 15% or more, you’ll receive loss earnings for 6 or 12 months.

Why it’s the best

If you’re looking for a streamlined, no-fuss underwriting process, consider Principal Financial Group’s Principal Income Protector disability insurance. Its simplified underwriting process is available for people age 51 or younger for monthly benefits up to $10,000. You’ll answer a few questions from a Principal financial professional, complete a telephone interview and receive a decision in just a few days.

The Principal disability policies can be issued to eligible applicants ages 18 to 60. Benefit periods range from two years to age 70, with an elimination period of 60 to 365 days. The policy is non-cancelable as long as you continue to make payments and is conditionally renewable for life. You can also take the plan with you if you change jobs.

No-cost riders include annual increase coverage and presumptive disability benefits for conditions like total loss of speech (with no possibility of recovery), loss of sight in both eyes or loss of use of hands or feet. You can also pay for riders, such as catastrophic disability, cost of living adjustment (COLA), residual disability and recovery, short-term residual disability and death benefit (a lump sum is paid if you die while receiving disability benefits).

Compare the best disability insurance companies of 2024

How much does disability insurance cost?

Disability insurance typically costs between 1% and 3% of your annual income. So if you earn $50,000 per year, your annual premium may be between $500 and $1,500, or $60 and $125 per month.

There are several factors that determine your overall cost of disability insurance.

• Monthly benefit amount, or how much the disability insurance policy will pay each month if you’re unable to work. 
• Benefit period. Long-term policies generally provide benefits for one to 10 years or until a specific age, such as 65 or 70. 
• Elimination period, or the waiting period between when you become disabled and when your benefits kick in. Elimination periods are commonly between 30 and 365 days, though it may be as long as 730. 
• Your age and gender. Women typically pay more for disability insurance than men when they’re younger due to the potential for pregnancy complications and extended disability claim periods, while men pay more as they age. 
• Health. If you smoke, are in poor health or have a personal or family history of chronic illnesses, you’ll pay more for disability insurance.
• Profession. High-income earners and those in high-risk professions are more likely to file a disability insurance claim, so these individuals pay more for coverage.

Best long-term disability insurance

The best long-term disability insurance is from Mutual of Omaha, according to our analysis of individual long-term disability insurance policies. It's the only disability insurance company that earns 5 stars in our rating. 

Mutual of Omaha’s long-term disability policies come with built-in benefits like: 

• Coverage suspension if you become activated as a military member.
• Full benefits for your benefit period window if you become permanently disabled.
• Premium waiver after you reach the shorter of your selected elimination period or 90 days.
• Recurrent disability coverage which waives the elimination period if a disability recurs within six months or you become newly disabled within 30 days.
• Survivor benefit if you pass away while receiving disability insurance benefits.
• Transplant donor benefits if you become disabled while donating tissue or an organ.

Whether you’re an employee looking for individual long-term disability coverage, self-employed or a small business owner, Mutual of Omaha is one of the best disability insurance providers for your coverage needs.

Best short-term disability insurance

Of the companies we analyzed, State Farm is the only provider that offers an individual short-term disability insurance plan. The policy will pay up to $3,000 in benefits for one or three years. You can choose a 30, 60 or 90-day elimination period. Its long-term disability insurance policy will pay up to $20,000 in benefits for five years or until age 67.

You can also purchase a long-term policy from Mutual of Omaha or Illinois Mutual with a short-term benefits period of six months. You can get an online quote from these companies, but State Farm doesn’t offer online quotes for disability insurance.

All three disability insurance providers have a strong financial strength rating, which shows they have a solid reputation for being able to pay claims. 

What is disability insurance and how does it work?

Disability insurance pays a portion of your lost income if you cannot work due to a covered injury or illness. 

• Short-term disability insurance covers a percentage of your income for a short time, often three to six months, but sometimes longer.
• Long-term disability insurance can provide some income replacement for years, even into retirement, if you qualify.

You don’t have to pay back disability benefits and they are not taxable if you pay your premiums with post-tax dollars. 

Once enrolled in an individual disability insurance plan, you’ll pay monthly premiums based on factors like your age, occupation, income and coverage. If you experience a disabling event like an injury, sickness or pregnancy and cannot work, you’ll receive a portion of your income until you’re able to return to work or no longer qualify for coverage. 

How to get disability insurance

You can typically get disability insurance in one of two ways:

• Through your employer as a group policy.
• Directly through a private disability insurance company, either by contacting the company or working with an insurance agent or broker. 

If you have paid Social Security taxes and become too ill or injured to work, you may qualify for Social Security Disability Insurance (SSDI), if you have worked long enough and recently enough. However, it can take up to a year to get approved for SSDI, and it’s not uncommon to get denied, after which you must apply for reconsideration and start the process over again.

Even if you get approved, the average 2023 SSDI benefit for American workers is only $1,483. Depending on your income, age, gender and other factors, you may qualify for more. 

What to look for in a long-term disability policy

When comparing long-term disability policies, pay close attention to the benefit period and elimination window. 

Expert tip: Neal Patel, Disability Income Specialist at Guardian Life Insurance, advises that you make sure your selections align with your savings so you’ll be able to pay your bills and expenses while waiting for coverage to kick in. Your benefit period should be long enough to recover from a serious injury or extended illness without returning to work before you’re ready.

Inflation coverage, partial and catastrophic disability benefits are important benefits to consider. 

A family care benefit — that pays if you take time off or lose income while caring for a loved one who is seriously ill or injured — may also help you decide which long-term disability policy is the best choice.

You should also understand the definition of disability the insurance company uses. 

• Own-occupation coverage will cover you if you can’t perform your job duties, but could work elsewhere.
• Any occupation disability will only pay out if you can’t perform any job tasks at all. 

An own-occupation policy may cost more but will allow you to collect benefits while disabled, even if you can work in a different capacity.

Disability insurance in real life

A few years ago, my husband was involved in a car accident where he sustained severe injuries. He’s a mechanic and was unable to work for three months. Luckily, he had a group disability insurance plan through his work, and we were able to file a disability claim. 

Although his premiums were expensive — around $75 per week — it was well worth the cost. His disability checks were enough to keep all our bills current and allow me to take some time off work to care for him. He could focus on recovering, and neither of us was stressed about him getting back to work until he was ready because we had the disability insurance policy in place when he got hurt.

Mandy Sleight

Who needs disability insurance?

According to a recent LIMRA study, 25% of Americans will become disabled before they reach the age of 67. This can be a particularly grim statistic for those who are the primary earners as  

• 61% of consumers say they would face financial hardship within 12 months of the primary earning becoming injured or sick.
• 49% say they would experience financial hardship in 6 months.
• 17% are unsure when they'd face financial hardship.

As such, primary earners should consider disability insurance to provide financial protection if they become too sick or injured to do their job. Other people who should consider disability insurance include:

• Parents who have minor children who rely on their income. 
• Individuals who have physically demanding occupations. 
• Individuals who are prone to certain conditions or injuries. 

How much disability insurance do I need?

You need enough monthly disability insurance to cover your expenses if you’re injured and unable to work for an extended period of time. The tips below can help you choose the right coverage amount: 

• Add up all your expenses, such as your mortgage or rent, food, debt payments, utilities and other bills, like insurance policies. 
• Determine what other sources of income are available to cover your financial obligations. This can include savings accounts, emergency funds, sick or personal leave time through your employer and a spouse’s income. 
• Consider how long you can wait for benefits. Longer elimination periods, or wait periods, will lower your monthly disability insurance premiums, but make sure it’s not too long that you or your family will suffer financially.

Best disability insurance FAQs

Is disability insurance worth getting?

Disability insurance could be worth it if you don’t have enough other income sources besides your paycheck or self-employment income to pay your bills and expenses.

According to the Social Security Administration, 20-year-olds have a 25% chance of becoming disabled before they reach retirement age. While some may recover quickly, others may never recover fully or at all. 

Even if you qualify for SSDI, the benefit amount may not be enough to replace your lost income, which can make individual disability insurance worth it.

Which type of disability insurance should you purchase?

The type of disability insurance you should purchase depends on how long you want to cover your lost income. 

Short-term disability insurance may be best if you only need to cover up to a year of being unable to work.

But if you work in a high-risk profession, are the primary wage earner in your household or have people who depend on you financially, long-term disability insurance coverage may be a better choice, as it could cover you for partial or total disability through retirement age, depending on the policy.

What are the types of disability insurance?

The types of disability insurance include short-term, long-term and Social Security Disability Income (SSDI).

You can purchase short or long-term disability insurance coverage through a private insurance company or your employer if they offer group coverage as part of your employee benefits package.

SSDI pays eligible workers who have paid Social Security taxes, worked long enough and meet its definition of disability. But you will have to wait five months before you can receive benefits, even if you qualify.

Do disability premiums increase over time?

Disability insurance premiums can increase over time, but it depends on your policy type.

• Level premium disability insurance policies offers fixed premiums.
• Graded premium disability insurance policies will gradually increase premiums over time. 

Some individual disability insurance policies include a contract clause allowing the insurer to raise premiums for all individuals in an occupational class, but not if you have a non-cancellable policy.