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Individual long-term disability insurance

Long-term disability can replace part of your take-home pay for years or even a lifetime.


If you rely on your paycheck to survive, long-term disability insurance can provide peace of mind. If you fall seriously ill or injured, this policy pays out a portion of your income for a specified time frame. While premiums can be costly, you can save by choosing a longer waiting period.

What is long-term disability insurance?

Long-term disability (LTD) insurance pays a percentage of your income if you suffer a covered illness or injury and can’t work. It typically replaces 40% to 60% of your paycheck for 2, 5 or 10 years, or until you reach retirement age.

How does long-term disability insurance work?

There are two key elements of long-term disability insurance: the elimination period and the benefit period.

If you become disabled, the elimination period begins. This is the amount of time you’ll wait before you start receiving benefits. Long-term plans usually come with an elimination period of 30, 60, 90, 180, 360 or 720 days — and 90 days is the most popular choice. If you have short-term disability insurance, that coverage can bridge the gap until your LTD policy kicks in.

How long does it last?

Once the elimination period is over, your insurer pays out benefits up to a specific age, or for a set number of years. This is known as the benefit period, and you’ll need to select one when you apply for a policy.

The most common benefit periods for long-term disability plans are:

  • Until retirement age as defined by Social Security
  • Lifetime
  • To age 65, 67, 70
  • 2, 5 or 10 years

Let’s say you select the benefit period “to age 70.” If you become totally disabled, you’ll receive your last check on your 70th birthday — regardless of when you bought the policy.

After the benefit period has passed, you’re no longer eligible to collect benefits.

Compare disability insurance

Data indicated here is updated regularly
Name Product Coverage Amount Benefit period Waiting period Own Occupation Medical exam required Online quote
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.
$500 to $20,000
1, 2, 5, or 10 years or until age 65 or 67
30 - 365 days
This startup offers some of the most riders and benefits backed by an established underwriter.
$100 to $20,000+
1, 2, 5, or 10 years or until age 65 or 67
30 - 365 days
Depends on provider
LeverageRx is a digital lending and insurance marketplace exclusively for medical professionals.

Compare up to 4 providers

What qualifies for long-term disability benefits?

Long-term disability caters to long-term health conditions. While every insurer defines disability differently, it typically covers:

  • Musculoskeletal and connective tissue disorders — like osteoarthritis, chronic back pain or slipped disks
  • Accidental injuries — like brain trauma caused by a car accident
  • Cardiovascular disorders — such as heart attacks or serious heart conditions
  • Circulatory disorders — like coronary artery disease
  • Prolonged mental illnesses — including PTSD and major depressive disorders
  • Cancer

Does long-term disability insurance cover pregnancy?

Long-term disability plans don’t count childbirth as a disability. But if you experience complications as a result of pregnancy, your plan will likely apply. For example, you could be eligible for benefits if you’re on doctor-ordered bed rest, or need more time to recover from an emergency C-section.

How to apply for long-term disability insurance

Around four in 10 companies offer some type of disability insurance as part of their employee benefits, according to LIMRA’s Life Insurance Barometer Study 2019. If yours does, your employer may subsidize your premium.

If you don’t have access to LTD through the workplace, you can purchase an individual policy on your own. By going down this path, you’ll be able to customize your coverage and choose the best benefit and elimination periods for your needs.

Is long-term disability insurance taxable?

While your salary is taxed, your disability insurance benefits aren’t — so your checks could come close to your take-home pay.

Unfortunately, your premiums aren’t tax-deductible.

Long-term vs. short-term disability

Both types of coverage protect your income, but they differ in terms of how long they last and the percentage of your paycheck they replace.

These are the key features of long- and short-term disability insurance.

Long-term disability insurance
Short-term disability insurance
Percentage of income replaced
40% to 60%
60% to 80%
Elimination period
30, 60, 90, 180, 365 or 720 days
1, 7, 14, 30, 60 or 90 days
Benefit period
2, 5 or 10 years; or until age 65, 67 or 70
30, 60, 90, 180 or 365 days
Types of disabilities covered
  • Long-term complications from pregnancy
  • Traumatic injuries
  • Musculoskeletal and connective tissue disorders
  • Cardiovascular disorders
  • Circulatory disorders
  • Prolonged mental health conditions
  • Cancer
  • Pregnancies and childbirth
  • Injuries
  • Prolonged illnesses
  • Musculoskeletal issues
  • Digestive disorders
  • Mental health conditions
For more affordable premiums, increase the elimination period or decrease the benefit period
STD is usually cheaper than LTD, and you can cut costs further by reducing the benefit period

Is long-term disability insurance worth it?

While health insurance can cover many illnesses and injuries, the coverage is far from exhaustive. That’s where disability insurance comes in. If you become disabled and can’t work, your policy will replace a percentage of your paycheck and help you to pay for your living and medical expenses.

If you’re still working and don’t have substantial savings, consider long-term disability insurance. While it’s more expensive than short-term disability, it covers a longer list of illnesses and injuries, including arthritis, back pain, heart disease and mental health conditions.

It lasts longer, too. Your benefit period can span several years, or until you reach retirement and Social Security kicks in. To put this into context, the average long-term disability claim lasts just under three years, according to the Center for Disability Awareness. But if you’re seriously ill or injured, LTD can potentially cover you for the rest of your working life.

Bottom line

Long-term disability insurance replaces part of your take-home pay if you become ill or injured and can’t work. It covers a comprehensive list of physical and mental conditions, including common and chronic issues like back pain. But while it can last years or even a lifetime, the maximum monthly benefit is usually between 40% and 60% of your salary.

Explore your options by comparing disability insurance companies.

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