Disability insurance is the policy almost no one buys until it's too late — yet 1 in 4 working adults will experience a disabling event before retirement. Without long-term disability (LTD) insurance, a serious accident or illness wipes out your income while expenses (mortgage, kids, medical) explode. Most employers offer 1–3 months short-term disability; the gap between that and Social Security Disability (which takes 6+ months to qualify and pays 30–40% of income) is where bankruptcies happen.
The 4 worth quoting
| Provider |
Best for |
Notes |
| Guardian |
Professionals |
Own-occupation, non-cancelable, top-rated |
| Berkshire (Guardian) |
Doctors / dentists |
Specialty-specific definitions |
| Principal |
Self-employed |
Flexible underwriting |
| Mutual of Omaha |
Mid-income |
Affordable + reliable |
Coverage formula
- Benefit amount: 60–70% of pre-tax income (most policies cap here; some allow up to 75% if you pay premiums with after-tax dollars)
- Benefit period: until age 65 or 67 (don't get 5-year-term policies)
- Elimination period: 90 days (matches typical short-term coverage end)
- Definition: "true own occupation" — pays if you can't do YOUR specific job, not "any job" (modified own-occ pays only if you can't do any job)
What "own occupation" means
- True own-occupation: pays if you can't do your specific job, even if you can do other work. A surgeon with hand injury still gets paid even if she can teach.
- Modified own-occ: pays only if you can't do any job in your training/education
- Any-occupation: pays only if you can't do any job at all (massive coverage gap)
True own-occupation is dramatically more expensive but the only definition worth buying for high-income professionals.
What's NOT worth your money
- Short-term disability only without long-term — coverage gap is the problem
- Group LTD through employer alone — not portable, often capped at $5–10k/mo
- Riders for cost of living adjustment above 3% — math rarely works
- Premium return riders — pay for the return, not the coverage
- Overpriced policies from "association" plans — quote independent
FAQ
Should I rely on Social Security Disability?
No — application takes 6–24 months, denials are common, payout is 30–40% of income. Treat as backstop, not primary coverage.
What about employer LTD?
Take what's offered (often free), but supplement with personal policy if income is high. Employer policies typically cap at $5–10k/mo and aren't portable.
How much does it cost?
1–3% of annual income for true own-occupation coverage. Higher for high-risk occupations.
Are pre-existing conditions excluded?
Often yes — get coverage while healthy, lock in rates.
Will my premium go up?
Non-cancelable policies (Guardian, Principal): no, locked at issue. "Guaranteed renewable" policies: rate can rise but coverage can't be cancelled.
Best for tech workers / engineers?
Guardian or Principal. Tech occupations get favorable underwriting + lower premiums than physical-labor jobs.
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