Long-Term Disability Insurance

Last updated: December 9, 2025 Recently updated

Long-Term Disability Insurance Guide

Replaces income for extended disabilities lasting years or until retirement

Not sure what coverage you need? Take our free 2-minute quiz to get personalized insurance recommendations.

What is Long-Term Disability Insurance?

Long-Term Disability Insurance provides essential protection for you and your family. Understanding how it works helps you make better coverage decisions.

Key Features

Coverage details and benefits
What’s typically included
Common exclusions to be aware of
Cost factors that affect premiums

Who Needs Long-Term Disability Insurance?

Learn whether this type of coverage is right for your situation and how to determine the appropriate coverage amount.

How to Choose a Policy

Tips for comparing policies, understanding terms, and finding the best value for your needs.

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Frequently Asked Questions

Common questions about long-term disability insurance answered.

Frequently Asked Questions

How much long-term disability coverage do I need?

Most policies cover 60-70% of your gross income because benefits from personally-paid policies are tax-free. If your employer pays premiums, benefits are taxable, so you’d need coverage closer to 70% to maintain your lifestyle. Consider your fixed expenses and how long you could live on savings.

What does 'own occupation' vs 'any occupation' disability mean?

Own-occupation policies pay if you can’t perform your specific job, even if you could work in another capacity. Any-occupation policies only pay if you can’t work any job you’re qualified for. Own-occupation coverage is significantly more valuable but costs more. Some policies start as own-occupation and switch to any-occupation after 2-5 years.

What is the elimination period?

The elimination period is how long you must be disabled before benefits begin—essentially a waiting period. Common options are 30, 60, 90, or 180 days. Longer elimination periods mean lower premiums but require more savings to cover the gap. Match your elimination period to your emergency fund.