Money Advice

8 Best Disability Insurance Companies of 2021 (Short-Term & Long-Term)

Data from LIMRA’s 2018 Insurance Barometer finds that roughly 3 in 5 American households have some kind of life insurance coverage.

In different phrases, there’s an excellent probability you have got — at minimal — a time period life insurance coverage coverage and due to this fact have some expertise selecting a life insurance coverage coverage that matches your monetary wants and life targets.

It’s far much less possible you have got expertise looking for one other kind of insurance coverage you in all probability want. That can be incapacity insurance coverage, a significant revenue alternative answer for staff unable to work productively because of severe harm or sickness.


If you or your loved ones depend on your employment revenue to make ends meet or assist a life-style you’ve grow to be accustomed to, incapacity insurance coverage is almost as necessary as life insurance coverage. After all, not all life-altering accidents and diseases lead to loss of life.

And not all life-altering occasions that qualify for incapacity protection are tragic. According to inner information from the Guardian Life Insurance Company of America, new moms make greater than one-quarter of the company’s short-term incapacity insurance coverage claims.


Best Disability Insurance Companies

Obtaining a incapacity insurance coverage coverage isn’t all that totally different from acquiring a life insurance coverage coverage. And many of the very best life insurance coverage firms additionally write incapacity insurance coverage insurance policies, so that you’ll see lots of acquainted names alongside the way in which.

Always store for insurance coverage utilizing an aggregator like Policygenius. But the next incapacity insurance coverage suppliers, particularly, are among the many finest for U.S.-based staff.

There are two principal sorts of incapacity insurance coverage protection: short-term incapacity and long-term incapacity. All of the businesses on this checklist supply long-term incapacity protection, some supply short-term incapacity insurance coverage, and plenty of of them (or their shut associates) supply different insurance coverage merchandise, reminiscent of time period life and annuities.

This analysis incorporates:

  • Financial power rankings from A.M. Best, which measures insurers’ monetary stability and total capability to make promised profit payouts
  • Customer satisfaction rankings from the Better Business Bureau (BBB), a number one evaluator of common business high quality
  • Overall suitability primarily based on every company’s product combine, strengths, weaknesses, and markets served

When evaluating incapacity insurance coverage firms and insurance policies, pay shut consideration to coverage specifics like:

  • The size of the elimination interval (the ready interval earlier than advantages kick in)
  • The size of the profit interval itself (which is normally longer for long-term insurance policies)
  • The month-to-month profit quantity
  • Actual incapacity insurance coverage prices (month-to-month premiums)
  • Whether the coverage presents “any occupation” or “own occupation” protection (or each)

1. Breeze Financial & Insurance Services Group

  • A.M. Best Financial Strength Rating: Not obtainable
  • BBB Customer Satisfaction Rating: A+
  • Great For: Very reasonably priced insurance policies; 100% on-line course of with no salespeople

Breeze presents short- and long-term incapacity options which are all about comfort and affordability. Its 100% on-line application course of cuts conventional salespeople out of the equation, permitting would-be policyholders to concentrate on what issues most: discovering and securing the correct amount of incapacity protection on the proper worth.

Young, wholesome staff with low protection wants qualify for long-term protection for as little as $9 monthly — considerably lower than many mainline insurers cost.

Despite its technology-driven strategy, Breeze prides itself on an unusually clear course of that walks candidates by means of all the scope of protection and may accommodate a variety of nontraditional conditions, together with solopreneurs and small-business homeowners with complicated insurance coverage wants.

And Breeze presents low-risk candidates an immediate approval possibility that waives the same old medical underwriting requirement — no invasive medical exams or time-consuming labs required.

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2. Northwestern Mutual

  • Northwestern Mutual LogoA.M. Best Financial Strength Rating: A++ (Superior)
  • BBB Customer Satisfaction Rating: A+
  • Great For: Supplementing employer-sponsored incapacity plans; specialised plans for part-time staff and stay-at-home mother and father

Northwestern Mutual focuses on long-term incapacity plans with variable-length elimination durations that bridge the protection hole between what employer-sponsored incapacity plans pay and policyholders’ pre-disability revenue.

But conventional staff with present incapacity protection aren’t the one of us Northwestern Mutual’s worthwhile for. The company additionally presents nontraditional merchandise and add-ons for part-time staff and stay-at-home mother and father whose emotional labor is so typically undervalued.

Plus, it’s thought to be one of the strongest insurance coverage firms on the market, which is not any small factor for these in search of peace of thoughts.

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3. MassMutual

  • Mass Mutual LogoA.M. Best Financial Strength Rating: A++ (Superior)
  • BBB Customer Satisfaction Rating: B-
  • Great For: Retirement financial savings safety; tying profit progress to wage

MassMutual’s customizable incapacity insurance coverage merchandise shield between 45% and 65% of policyholders’ pre-disability revenue, however that’s removed from the entire story.

Powerful riders, some of which aren’t broadly obtainable elsewhere, assist policyholders maintain their monetary plans on observe, at the same time as they pay into their insurance policies or (if it involves that) accumulate advantages.

For instance, the retirement financial savings safety rider earmarks some revenue for policyholders’ retirement plans, conserving their long-term funding technique on observe once they’re briefly unable to work.

Another rider pegs profit progress to wage progress, including safety as policyholders’ careers advance.

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4. Guardian Life Insurance Company of America

  • Guardian Life Insurance LogoA.M. Best Financial Strength Rating: A++ (Superior)
  • BBB Customer Satisfaction Rating: A+
  • Great For: Coverage for self-employed staff; group plans for small employers

Guardian Life Insurance Company of America presents short- and long-term incapacity insurance coverage for self-employed people, group plans for employers, and supplemental insurance policies for staff wanting so as to add to their employer-sponsored protection.

Because its insurance policies are solely obtainable by means of licensed insurance coverage brokers or employers themselves, Guardian requires all would-be policyholders to undergo a intermediary and positively caters to small-business homeowners and executives trying to retain staff with enticing incapacity protection.

But it’s a stable alternative for self-employed staff with variable revenue, a bunch that tends to be perceived as high-risk (and is due to this fact underserved) by most incapacity insurance coverage suppliers.

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5. Principal Financial Group

  • Principal Financial LogoA.M. Best Financial Strength Rating: Not rated
  • BBB Customer Satisfaction Rating: A+
  • Great For: Existing Principal Financial shoppers and people prepared to work with a Principal advisor

Like Guardian’s, Principal Financial Group’s incapacity insurance coverage providing is gated, obtainable solely to shoppers of Principal Financial Group advisors and people prepared to determine an advisory relationship (even when non permanent) to acquire incapacity protection.

The benefit: All Principal insurance policies are written for people, not employers, and are due to this fact transportable, that means they continue to be in power when the policyholder adjustments jobs.

Because Principal shoppers’ relationships prolong properly past incapacity insurance coverage, they’ll generally qualify for decrease premiums than these obtainable by means of one-off particular person coverage transactions. However, essentially the most important consider any pricing choice is the perceived threat of incapacity.

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6. RiverSource Life Insurance Company

  • Riversource LogoA.M. Best Financial Strength Rating: A+ (Superior)
  • BBB Customer Satisfaction Rating: A+
  • Great For: Option to tie advantages to wage; potential for top protection limits

RiverSource Life Insurance Company presents two incapacity insurance coverage options: Income Protection and Income Protection Plus.

The principal distinction between the 2 is the next stage of protection with the latter, although each are customizable primarily based on policyholders’ incomes and long-term targets.

And each include non-compulsory riders that tie advantages to wage will increase, guaranteeing peace of thoughts with each increase. Like Guardian and Principal, RiverSource presents incapacity insurance policies by means of a community of advisors — on this case, these working with Ameriprise Financial.

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7. Mutual of Omaha Insurance Company

  • Mutual Of Omaha LogoA.M. Best Financial Strength Rating: A+ (Superior)
  • BBB Customer Satisfaction Rating: A+
  • Great For: High protection limits, non-compulsory protection till age 67

Mutual of Omaha Insurance Company’s long-term incapacity insurance coverage providing has two distinct benefits: excessive protection limits (as much as $12,000 monthly) and the choice to increase protection till age 67, two years previous the same old cutoff date for long-term incapacity advantages.

If you proceed to work full-time and pay your premiums, your coverage might stay in power till age 75, however Mutual of Omaha reserves the best to cancel your coverage at any time after age 67.

The principal disadvantage right here: As with some rivals, particular person Mutual of Omaha incapacity insurance coverage insurance policies are solely obtainable by means of licensed brokers.

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8. Assurity

  • A.M. Best Financial Strength Rating: A- (Excellent)
  • BBB Customer Satisfaction Rating: A+
  • Great For: Longer protection durations, versatile profit quantities (together with complete incapacity protection)

Assurity is a versatile possibility for staff with longer-term incapacity revenue insurance coverage wants. Its protection durations begin at one year and proceed up till retirement age.

Customizable profit quantities vary from partial incapacity (for these transitioning again to the workforce) to complete incapacity protection for policyholders unable to work in any respect.

Assurity additionally stands out for its dedication to any occupation protection. Even in case you’re capable of carry out some duties in a task or occupation apart from the one you held earlier than your incapacity, you possibly can stay out of the workforce (and incomes advantages) till you’re as soon as extra capable of do the job you had been educated for.

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Final Word

Health insurance coverage is a prevalent employment profit. And it’s a precious one — a lot in order that many staff speed up or delay job adjustments primarily based on the supply or absence of high quality, reasonably priced employer-sponsored medical health insurance.

Employer-sponsored incapacity insurance coverage isn’t provided as broadly and isn’t as excessive on staff’ must-have lists as medical health insurance. But it’s nonetheless a reasonably frequent employment profit. If you’re unsure whether or not your employer presents it, dig up your new-hire packet or log into your HR portal to see for your self.

If it’s an possibility, examine additional. It might be a greater deal than what’s obtainable on the person market to somebody in your threat class.

Then once more, it may not be, which is why it all the time pays to buy round.


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