Disability Insurance Quotes

Disability insurance protects your source of income if injury or illness limits your ability to work. Also known as disability income insurance and income protection insurance, it is designed to replace a portion of your monthly earnings while you are disabled. There are various types of disability insurance, such as short term and long term disability insurance, and ways to get coverage, like as an individual and as part of a group.

Typically, it is recommended that working individuals spend between 1 percent and 4 percent of their annual income on disability insurance. It’s possible that you pay more or less than those ranges depending on your coverage needs. How much you pay in disability insurance premiums is based on the likelihood of you filing a claim. There are a number of factors that disability insurance carriers use to determine your risk level.

We recommend taking inventory of your monthly obligations, necessities, and investing activities to calculate your coverage needs. Obligations include mortgage/rent payments, student loan payments, credit card payments, and any other monthly debt obligations. Necessities include utilities, groceries, gas, and any other recurring expenses for you and your dependents. You will also want to consider the amount of emergency savings that you already have.

If you are currently employed, there are a couple of different ways to get disability insurance. You can join a group disability insurance plan if it offered by your employer, but this type of coverage has a number of limitations. Whether you have group coverage or not, the best way to protect your income is with an individual disability insurance plan from a private insurance company. This will require you to apply and go through an underwriting process to determine whether or not you qualify.

No matter how much (or how little) you spend on disability insurance, it’s important to understand the tax treatment of individual coverage. The monthly disability insurance premiums that you pay for a personal policy are not tax-deductible. However, any disability insurance benefits you receive as the result of a disabling injury or illness will be treated as tax-free income since you are paying for coverage with after-tax dollars.

Long term disability insurance is the most complete form of income protection available. It is designed to cover serious ailments that may last several months, years, or even permanently. With long term disability coverage, benefits typically begin 90 days after a disabling event occurs and last for five years.

Short term disability insurance is a type of income protection for temporary injuries and illnesses. It is ideal for disabling events that may limit the ability to work, but people generally recover from. For short term disability coverage, the waiting period is typically 14 days and benefits generally last six months.

Individual disability insurance is personalized coverage that you own. Disability insurance for individuals can be long term or short term, and it only protects your source of income from injuries and illnesses that may limit your ability to work. This type of income protection is also commonly referred to as private disability insurance and personal disability insurance.

No individual disability insurance policy is one-size-fits-all. Disability insurance riders help customize a policy to fit a person’s personal needs and preferences. The additional benefits that make sense for one person may be completely unnecessary for the next.

Most long term disability insurance carriers have special programs that enable applicants to skip the standard medical exam during underwriting. Insurers offer this option to select applicants as a way to save on the cost of conducting an exam and sending samples to a lab. These programs are often restricted to certain occupations, benefit amounts, and age limits.

An own-occupation disability insurance policy protects your ability to work in your specific profession. You will be covered if a disability prevents or limits you from working the exact job you had before you became disabled. Under an any-occupation policy, you will only receive benefits if you are unable to work in any capacity.

The best disability insurance companies have A ratings. And the best policy for you is the one that meets your unique financial needs by protecting as much of your income against as many potential injuries and illnesses as possible. Dozens of companies offer disability insurance. You can whittle down the list and focus on a smaller number by looking at financial strength.

Employer-sponsored coverage is a great start, but it may not be enough to maintain your lifestyle if you become disabled. Most group plans only cover a small percentage of your income. Additionally, any benefits you receive from your employer plan will be taxed as ordinary income if you become disabled. On the other hand, the benefits you receive from an individual policy will be tax-free since the premiums are paid with after-tax money.

If you are injured or become ill on-the-job and miss work, you may receive benefits to cover partial lost wages, as well as medical bills or rehabilitation costs. Unlike disability insurance, workers' comp does not cover injuries and illnesses experienced outside of work.

Social Security Disability Insurance (SSDI) is a federal, payroll-tax funded program. SSDI is designed to provide supplemental income to people who are physically restricted from working due to disability. However, it's very difficult to get and the monthly benefit amount is typically much less than what most people need to maintain their way of life prior to becoming disabled.

In addition to individual and group disability insurance, you may also be covered by state disability insurance if you live in one of the following states: California, Hawaii, New Jersey, New York, and Rhode Island. These five states require employers to provide disability insurance coverage for injuries and illnesses experienced outside of work.

Certified Public Accountants (CPAs) typically fall in the highest occupation class. Non-CPAs with a four-year accounting degree will generally be rated in the highest or second-highest class, depending on the insurer. Auditors are also rated high, though not as high as CPAs. Bookkeepers and other accountants without degrees tend to fall in the middle of rating categories.

Architects are typically rated in the highest occupational class by disability insurance companies. This means companies consider the architecture profession low-risk from an underwriting standpoint. As a result, architects may pay less for coverage than those in other occupations and even in related roles, such as the construction workers who are on job sites all day.

Because consultants cover a wide range of tasks, specialties, and industries, insurance carriers vary on how they rate the occupation. Disability insurance companies typically rate consultants from a 3 to a 5. Some companies offer different classes based on income levels. Others classify consultants based on the industry they primarily consult in, such as human resources or healthcare.

For doctors, occupational classifications can vary widely by medical specialty and insurance company. In general, the medical specialties that are placed in the highest-risk occupational classes are those that regularly engage in high-risk practices or that have strenuous manual duties. Examples include anesthesiologists, registered nurses, and podiatrists.

Most disability insurance companies place lawyers in their highest occupational rating class, indicating that the risk of a lawyer filing a disability claim is relatively low. It also means that attorneys will generally pay lower rates than other professions.

Insurers with five classes typically rate nurses as a 2. Those with six classes place nurses in their 3 rating class. CNAs and some home health providers may be rated lower than other types of nurses. Some insurers will rate nurses higher (meaning less risky) who work in doctors offices and clinics than those who work in hospitals, nursing homes, hospice facilities, or in-home health care.

Underwriting can be a challenge for insurance companies when an applicant is self-employed. There’s a big difference between how a disability would affect a home-based sole-proprietor versus an owner of a 50-person construction company. Likewise, many injuries and illnesses will affect a self-employed accountant’s ability to work differently than a self-employed mechanic.

How exactly should new business owners prepare for the unexpected? In addition to essential forms of coverage like general liability and commercial property insurance, there are also various types of disability insurance for small business owners to consider, such as individual disability insurance, group disability insurance, and business overhead expense (BOE) disability insurance.

Insurers tend to rate software engineers in their highest occupational class. This means they consider the profession lower risk for disability claims than other vocations. It also means they will pay less for coverage than others with similar underwriting attributes. Some insurance companies may knock software engineers down a class or two based on education level or annual salary.

If the startup you work for operates in a white-collar industry, you will likely have an occupation rating in the upper half of the insurer’s rating classes. For example, some insurers have a classification for office workers. Lower-earning workers may be rated a 3 out of 5 classes or a 4 out of 6. Higher-paying managers and executives are often rated in the highest classes, either a 5 or 6.

Most long term disability insurance companies do not cover pre-existing conditions. However, individuals with pre-existing conditions may be extended an offer for coverage that stipulates any current or future disability stemming from a current or past condition will not be covered. This will be stated in the policy's exclusions and limitations.

First, enter your basic info to get a quick disability insurance quote featuring real rates with built-in coverage recommendations. You have the ability to choose your coverage amount and any extra features you may or may not want on your policy. Once you are satisfied with your coverage options, you can apply directly online, enter your payment info, and sign your final documents. We use technology that allows us to approve or deny coverage on the spot for some applicants. However, you may be subject to additional follow-up questions and/or a medical exam before a decision can be made.

In order to move forward with your application, we require that you put a credit card on file. You will not be charged until you have accepted your coverage offer and your plan has been issued. Breeze is committed to full pricing transparency. There are no hidden fees, period.

No. If you become disabled, we will waive your monthly premium as soon as your monthly disability benefits begin to payout. That's why it's important that you always make your full monthly payments in case you need to file a claim for disability benefits later on.