How this estimate works
Individual long-term disability insurance replaces part of your income, usually around 60% of gross pay, if illness or injury keeps you from working. Because the benefit is tied to income, the premium is too. Policygenius reports that a long-term disability policy generally costs 1% to 3% of annual salary. The calculator multiplies your income by the low end (1%), the middle (2%) or the high end (3%) of that range.
For example, on a $100,000 income the range is about $1,000 to $3,000 a year, or roughly $83 to $250 a month, which matches the Policygenius table. Policygenius also puts the average cost at around $2,200 a year, with the amount depending mostly on income.
What moves the price within the range
- Age: older applicants pay more
- Benefit period: two, five or 10 years, to age 65 or for life; longer periods cost more
- Elimination period: the waiting time before benefits start
- Health, smoking and risky hobbies
- Occupation: work with physical risk costs more, and some jobs have limited coverage
- Riders such as own-occupation or cost-of-living adjustments
Limitations
The estimate does not underwrite you; real offers depend on medical and financial information, and insurers limit benefits to a share of income. Group coverage through an employer is priced differently and is often short-term.
This is an indicative estimate, not an offer of insurance. Policies are issued by licensed insurers and placed through licensed producers in your state. Learn more about disability insurance or request a quote.