Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure

Average cost of long term disability insurance for July 2022

Buy a policy early and adjust your benefits to save.

Long-term disability insurance is sometimes available through your employer or by purchasing an individual policy. If you experience a covered illness or injury and can’t work for the specified amount of time written in your policy, it can pay up to 60% of your monthly salary. It’s more expensive than short-term disability, but you might find ways to save by adjusting your coverage.

What’s the average cost of long-term disability insurance?

Your coverage is based on a percentage of your salary, and so is your premium. Your rates will typically be between 1% and 3% of your annual salary. Rates depend on the percentage of your salary you want to be replaced, how long you want coverage to last and how long you’re willing to wait to begin receiving benefits.

What factors affect my disability insurance cost?

As with any insurance, your personal information and the specifics of your policy determine how much you pay every month to keep your policy. The most common factors to determine your premium include:

  • Age. The older you are when you buy your policy, the higher your disability premiums will be. This is because the risk of disability increases as you age. If you get a non-cancelable disability policy, your rates are locked at the age of purchase.
  • Benefit period. Some policies let you choose the time limit for how long your policy will pay out benefits. This set number of years can range from two years to retirement age. The longer your benefit period, the more your premiums will cost. But if your benefit period is too short, you could end up without coverage and still unable to work.
  • Coverage amount. This is the monthly amount you’ll be paid if you’re totally disabled. It typically ranges from 40% to 60% of your monthly paycheck. A higher payout percentage usually means a higher premium.
  • Health. Not only do most disability policies have rules about pre-existing conditions, but your health and medical history can factor into the cost of your premium. You’ll be charged extra for habits like tobacco use.
  • Location. Insurance rates vary by state, and disability insurance is no different. Usually a higher population state will come with higher rates because more people are making claims.
  • Occupation. How much money you make will affect the cost of your premiums. The higher your salary, the more you’ll pay in premiums. This is because your insurer will have to pay out more money in the case of your disability.
  • Riders. Some policies offer riders to customize your coverage, most of which cost extra. For example, the waiver of premium rider allows you to skip paying premiums while you’re out on disability.
  • Waiting period. Long-term plans usually come with a waiting period — or elimination period — of 30, 60, 90, 80 or even 720 days. A shorter elimination period means a higher premium.

How do I get the cheapest long-term disability insurance?

To help you save money, keep the following in mind before you apply:

  • Age matters. The younger you are when you apply, the better your rates will be. Buying disability insurance while you’re young and healthy translates to better rates.
  • Weigh the cost of riders. Before you add a rider to your policy, make sure the extra costs are worth the benefit you’ll get down the road.
  • Know what you need. Understanding exactly how much coverage you need and for how long can ensure you don’t pay for more coverage than necessary.

Long term disability rates by age

The table shows a breaks down of rates in 10-year increments from 30 to 50 years old for a healthy, non-smoking man with an annual salary of $50,000 and $100,000.

AgeMonthly premium for a $50,000 annual salaryMonthly premium for a $100,000 annual salary
30 years old$59 to $80$90 to $121
40 years old$79 to $107$119 to $161
50 years old$127 to $171$190 to $258

*Based on sample rates from Policygenius, July 2020.

Get quotes for long term disability insurance

1 - 3 of 3
Name Product Coverage Amount Benefit period Waiting period Own Occupation Medical exam required
Policygenius Disability Insurance
$100 to $20,000
2, 5, or 10 years or until age 65 or 67
60 - 365 days
Depends on provider
Get matched with one of 15 top life insurance companies to find the best coverage and rates for you.
JRC Life Insurance
$500 to $20,000
2 year to lifetime
30 - 365 days
Compare policies up to $10 million from 45+ top insurance companies with the click of a button.
$500 to $20,000
1, 2, 5, or 10 years or until age 65 or 67
30 - 365 days
Secure long-term disability insurance online by filling out an easy 10-minute application, even if you're a high income earner.

Compare up to 4 providers

Bottom line

Disability insurance is one of the most cost-effective ways to protect yourself from the unknown. But you can still save money by applying as soon as possible, adjusting your benefits to reduce your costs and comparing your disability options to get the best deal.

More guides on Finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site