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Best Long-Term Disability Insurance In 2023 (Updated List)

Best Long-Term Disability Insurance – Long-term disability insurance is a type of income protection that is designed to cover serious injuries and illnesses that keep you out of work for three months or longer. This includes permanent disabilities that leave you unable to return to work. Long-term disability insurance can provide you with a monthly benefit that replaces a portion of your income, typically 60% to 80%, up to a certain limit. This can help you pay for your living expenses, medical bills, and other financial obligations while you recover or adjust to your disability.

According to the Social Security Administration, one in four 20-year-olds will become disabled before they reach retirement age. However, only about 35% of the U.S. workforce has access to long-term disability insurance through their employers, and many of those plans may not provide adequate coverage or benefits. Therefore, it may be wise to consider buying an individual long-term disability policy that can supplement or replace your employer-sponsored plan or provide coverage if you are self-employed or do not have access to a group plan.

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Not all long-term disability policies are created equal. There are many factors to consider when choosing a policy, such as the cost, the coverage amount, the benefit period, the elimination period, the definition of disability, the policy features and riders, and the financial strength and reputation of the insurer. To help you find the best long-term disability insurance for your needs and budget, we have evaluated more than 20 insurers based on these criteria and selected the top five providers for 2023.

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Best Long-Term Disability Insurance Providers of 2023

  • Best Overall: Breeze
  • Best for Risky Occupations: Assurity
  • Best for Customization: Guardian Life
  • Best for No Medical Exam: Principal Financial Group
  • Best for Rider Options: Mutual of Omaha

Best Overall: Breeze

Breeze is our top choice for long-term disability insurance because it offers a simple, fast, and convenient way to buy coverage online. Breeze is a digital insurance company that was founded in 2019 and partners with Assurity, an established insurer with an A- rating from A.M. Best. Breeze uses automated underwriting technology and algorithms to provide instant quotes and coverage without requiring a medical exam for most applicants. You can apply for and purchase a policy in as little as 15 minutes from the comfort of your home.

Breeze offers non-cancelable and guaranteed renewable policies that provide coverage until age 65 or 67, depending on your occupation. You can choose from various coverage options and riders to customize your policy according to your needs and preferences. For example, you can choose a benefit amount ranging from $500 to $20,000 per month, up to 70% of your income; an elimination period ranging from 30 to 365 days; a benefit period ranging from two years to age 65 or 67; and optional riders such as residual disability, the cost-of-living adjustment (COLA), own occupation, critical illness benefit, catastrophic disability benefit, automatic benefit increase, student loan repayment benefit, and waiver of premium.

Breeze’s policies are affordable and competitive compared to other providers. For example, a healthy 35-year-old male who earns $60,000 per year can get a quote for a policy that pays $3,000 per month for five years after a 90-day elimination period for $32 per month. A healthy 35-year-old female who earns $60,000 per year can get a quote for the same policy for $52 per month.

Breeze’s policies are available in all states except New York. The company has received positive reviews from customers who appreciate its easy and hassle-free application process, responsive customer service, and transparent pricing.

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Pros

  • Automated underwriting makes it quick and easy to buy coverage if you qualify
  • No medical exams are required for most applicants
  • Competitive pricing and flexible coverage options
  • Non-cancelable and guaranteed renewable policies

Cons

  • Consumer reviews are sparse
  • Coverage limitations regarding foreign travel and mental health
  • Some products and rates are unavailable to New York residents

Best for Risky Occupations: Assurity

Assurity is our best choice for long-term disability insurance for risky occupations because it offers coverage for a wide range of occupations that may be excluded or surcharged by other providers. Assurity is an established insurer that has been providing coverage since 1890 and has an A- rating from A.M. Best. Assurity offers individual long-term disability policies that provide coverage until age 65 or 67, depending on your occupation.

Assurity’s policies are non-cancelable and guaranteed renewable, which means that your premiums and benefits are locked in and cannot be changed by the insurer as long as you pay your premiums on time. You can choose from various coverage options and riders to customize your policy according to your needs and preferences. For example, you can choose a benefit amount ranging from $300 to $20,000 per month, up to 70% of your income; an elimination period ranging from 30 to 720 days; a benefit period ranging from two years to age 65 or 67; and optional riders such as residual disability, COLA, own occupation, critical illness benefit, catastrophic disability benefit, automatic benefit increase, return of premium, and waiver of premium.

Assurity’s policies are affordable and competitive compared to other providers. For example, a healthy 35-year-old male who earns $60,000 per year and works as a carpenter can get a quote for a policy that pays $3,000 per month for five years after a 90-day elimination period for $61 per month. A healthy 35-year-old female who earns $60,000 per year and works as a nurse can get a quote for the same policy for $79 per month.

Assurity’s policies are available in all states except New York. The company has received positive reviews from customers who appreciate its reliable coverage, friendly customer service, and fair claims handling.

Pros

  • Coverage for a wide range of occupations, including high-risk ones
  • Non-cancelable and guaranteed renewable policies
  • Competitive pricing and flexible coverage options
  • Established insurer with a strong financial rating

Cons

  • Medical exams required for most applicants
  • Some products and rates are unavailable to New York residents

Best for Customization: Guardian Life

Guardian Life is our best choice for long-term disability insurance for customization because it offers the most options and riders to tailor your policy to your specific needs and preferences. Guardian Life is one of the largest and oldest insurers in the U.S., with over 160 years of experience and an A++ rating from A.M. Best. Guardian Life offers individual long-term disability policies that provide coverage until age 65 or 67, depending on your occupation.

Guardian Life’s policies are non-cancelable and guaranteed renewable, which means that your premiums and benefits are locked in and cannot be changed by the insurer as long as you pay your premiums on time. You can choose from various coverage options and riders to customize your policy according to your needs and preferences. For example, you can choose a benefit amount ranging from $100 to $20,000 per month, up to 80% of your income; an elimination period ranging from 30 to 720 days; a benefit period ranging from two years to age 65 or 67; and optional riders such as residual disability, COLA, own occupation, enhanced partial disability benefit, future increase option, retirement protection plus benefit, student loan repayment benefit, catastrophic disability benefit, automatic benefit increase, waiver of premium, social insurance supplement benefit, hospital confinement indemnity benefit, cost-of-living adjustment rider (COLA), graded lifetime benefits rider (GLB), enhanced residual disability rider (ERD), future increase option rider (FIO), retirement protection plus rider (RPP), student loan repayment rider (SLR), catastrophic disability rider (CDR), automatic benefit increase rider (ABIR), waiver of premium rider (WOP), social insurance supplement rider (SIS), hospital confinement indemnity rider (HCI), and more.

Guardian Life’s policies are more expensive than other providers but offer more comprehensive and flexible coverage. For example, a healthy 35-year-old male who earns $60,000 per year and works as an accountant can get a quote for a policy that pays $3,000 per month for five years after a 90-day elimination period for $83 per month. A healthy 35-year-old female who earns $60,000 per year and works as an accountant can get a quote for the same policy for $117 per month.

Guardian Life’s policies are available in all states except Montana. The company has received positive reviews from customers who appreciate its high-quality coverage, responsive customer service, and smooth claims process.

Pros

  • Non-cancelable and guaranteed renewable policies
  • Comprehensive and flexible coverage options
  • The most riders available in the market
  • Established insurer with the highest financial rating

Cons

  • Medical exams required for most applicants
  • More expensive than other providers
  • Some products and rates are unavailable to Montana residents

Best for No Medical Exam: Principal Financial Group

Principal Financial Group is our best choice for long-term disability insurance for no medical exam because it offers simplified underwriting for applicants who meet certain criteria. Principal Financial Group is a well-known insurer that has been providing coverage since 1879 and has an A+ rating from A.M. Best. Principal Financial Group offers individual long-term disability policies that provide coverage until age 65 or 67, depending on your occupation.

 

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