Disability insurance is a useful financial safeguard for those faced with a major illness or injury that prevents them from working. It is particularly beneficial for those in demanding or risky jobs, highly trained professionals, or high earning individuals. According to the Social Security Administration, approximately one in four individuals currently aged 20 will become disabled before retirement. Social Security Disability Insurance (SSDI) is available, but the average monthly benefit of $1,483 may not be enough to cover a family’s expenses.

Several companies offer robust disability insurance coverage including Guardian, Breeze, Assurity, The Standard, and Mutual of Omaha. Guardian has strong financial strength ratings and a low complaint index, while Breeze offers comparison shopping between various insurers. Assurity is ideal for those needing coverage with benefit amounts below $6,000 per month without a medical exam. The Standard provides family care benefits for those caring for a seriously ill or injured loved one. Mutual of Omaha offers a wide range of policy options, benefit periods, and maximum monthly benefits.

Long-term disability insurance generally costs between 1% and 3% of your annual income. The cost depends on factors such as your health status, occupation, age, coverage amount, period, and elimination period. The coverage amount required can be calculated by deducting your monthly bills from any income you’d continue to receive if disabled. Disability insurance can provide necessary financial stability in the event of inability to work due to illness or injury.