Long Term Disability Insurance
When an unexpected illness or injury prevents you from working, the financial consequences can be devastating. Long term disability insurance replaces a portion of your income if you cannot work for an extended period, ensuring that bills, mortgage payments, and daily living expenses are covered. At Diversified Insurance Brokers, we work with 100+ top-rated carriers to help self-employed professionals, executives, and families find tailored disability coverage that fits their needs and budget.
Why Long Term Disability Insurance Matters
- Income Protection: Ensures you can maintain your lifestyle and meet financial obligations if you are unable to work for months or even years.
- Customizable Coverage: Choose elimination periods, benefit amounts, and coverage terms that match your income and career path.
- Specialized for Occupation: Options for own-occupation, medical professionals, self-employed workers, and executives.
- Peace of Mind: Provides stability and security for your family during uncertain times.
Case Example
Consider a 42-year-old marketing consultant who earns $95,000 per year. After being diagnosed with multiple sclerosis, she was unable to continue full-time work. Because she had a long term disability policy in place with a 90-day elimination period and a benefit that replaced 60% of her income, she continued receiving over $4,500 per month—allowing her to pay her mortgage, support her family, and avoid dipping into retirement savings.
Calculate Your Disability Insurance Needs
See how much monthly income protection you may need to secure your financial future.
Who Needs Long Term Disability Coverage?
- Self-Employed Professionals who do not have access to employer-provided disability benefits.
- Executives and High-Income Earners whose financial commitments require substantial income protection.
- Families with Dependents who rely on consistent income to maintain household stability.
- Medical and Specialized Professionals where a career-ending disability could drastically impact lifetime earnings.
Plan Design Options
- Elimination Periods: Typically 90 to 180 days before benefits begin.
- Benefit Periods: Options from 2 years to age 65 or even lifetime coverage.
- Partial Disability Riders: Provides benefits if you can work part-time but lose part of your income.
- Cost of Living Adjustments: Ensures benefits keep pace with inflation.
Protect Your Income with Long Term Disability Insurance
Our team will help you compare policies from 100+ carriers to secure the best protection for your family.
FAQs: Long-Term Disability Insurance
What is long-term disability insurance?
Long-term disability insurance is a policy that replaces a portion of your income if you’re unable to work due to illness or injury, typically after a waiting (elimination) period, and continues for an extended duration—often several years or until retirement age.
How does it differ from short-term disability insurance?
Short-term disability covers a temporary loss of income, usually for a few months. Long-term policies cover longer periods (years or until retirement) and often have longer elimination periods and different underwriting requirements.
What factors determine the cost of long-term disability insurance?
Premiums are based on your age, occupation, health status, income level (benefit amount), length of coverage (benefit period), elimination period (how long you wait after a disability starts), and any optional riders (e.g., cost-of-living adjustment, residual disability, etc.).
How much of my income can be replaced?
Policies often replace 50–70% of pre-disability income, but the exact percentage depends on the policy design, your employment benefits, other income sources, and any limits imposed by the insurer.
What is an elimination (waiting) period?
The elimination period is the amount of time you must wait after a disability begins before benefits kick in. Longer elimination periods lower the premium cost; shorter ones cost more.
Does my occupation matter?
Yes. Occupations that are risky, physically demanding, or involve exposure to hazards typically have higher rates or more restrictive definitions of disability. “Own-occupation” definitions are more favorable but more costly.
What riders or additional features are available?
Common riders include cost-of-living adjustments (to offset inflation), residual or partial disability (if you can work part-time), future purchase options, waiver of premium (waive payments while on claim), etc.
Is underwriting required?
Often yes. Depending on the benefit amount, your age, and health, an insurer may require medical exams, medical records, or other documentation. Some policies or options may include non-medical underwriting, where only health questionnaires, prescription history, or other less invasive checks are needed. DiversifiedQuotes mentions “non-medical underwriting” as a possibility. :contentReference[oaicite:0]{index=0}
Will my premiums increase?
Premium increases depend on whether the policy is level-premium or has guaranteed rates. Some policies lock in premiums; others may adjust in certain circumstances. Be sure to check policy terms.
How do I determine how much coverage I need?
Calculate your necessary monthly expenses (housing, bills, healthcare, etc.), subtract what you expect from other sources (savings, employer disability, etc.), then plan for a benefit that helps cover the gap. Also consider how long you might need benefits—until you can return to work or until retirement.
What if I already have disability coverage through work?
Workplace coverage may help, but often doesn’t cover everything (bonuses, full salary, or duration). A private policy can help fill in gaps—especially if the group plan has limits or ends when employment ends.
