Estimate your monthly long-term disability insurance premium based on income, age, occupation, benefit period, and elimination period.
Monthly Premium = Annual Income x 2% / 12 (base)
x Age multiplier (Under 30: 0.75 / 30-39: 1.0 / 40-49: 1.35 / 50-59: 1.80 / 60+: 2.30)
x Occupation class (Professional: 0.85 / Clerical: 1.0 / Light Manual: 1.20 / Skilled Manual: 1.50 / Heavy Manual: 1.90)
x Employment type (Self-Employed: +15% / Part-Time: +10%)
x Benefit period (2 yr: 0.70 / 5 yr: 0.90 / To 65: 1.0 / To 67: 1.05)
x Elimination period (30 days: 1.30 / 90 days: 1.0 / 365 days: 0.72)
x Coverage % (50%: x0.85 / 70%: x1.15)
x Smoker surcharge (+25% if Yes)
x Existing coverage (x0.60 if employer LTD already in place)
Range = Estimate x 0.85 to Estimate x 1.15 (minimum $25/mo)
Disability insurance replaces a portion of your income, typically 50-70%, if an illness or injury prevents you from working.
Most financial advisors recommend enough to replace 60-70% of your pre-tax income. Factor in existing employer coverage before deciding.
The elimination period is how long you must be disabled before benefits start. A longer elimination period lowers your premium.
The benefit period is how long benefits are paid. Options range from 2 years to age 65. Longer benefit periods cost more.
Yes for most working adults. The Social Security Administration estimates 1 in 4 workers will become disabled before retirement age.
Income and benefit amount. Disability insurance replaces a portion of your income, typically 50–70%, if you cannot work. Your current income and the benefit percentage you choose set the monthly payout and therefore the premium.
Occupation and age. Riskier occupations and older ages raise the premium, since both increase the chance of a claim. Your occupation class is one of the largest rating factors.
Waiting period and benefit period. A longer elimination period (the wait before benefits begin) lowers the premium; a longer benefit period (how long payments last) raises it.
The range reflects how much occupation, age, and policy design move disability pricing. The low end suits a younger worker in a low-risk job with a long waiting period; the high end reflects an older worker, a riskier occupation, or a short waiting period with a long benefit period. Because this coverage protects your income — usually your largest asset — weigh the premium against how long you could go without a paycheck.
This is an educational estimate, not a quote. It cannot see the definition of disability a specific policy uses (own-occupation versus any-occupation), riders, or medical underwriting, all of which change price and value. Group coverage through an employer may cost less. Compare real quotes from licensed insurers before buying.
Individual policies typically replace 50–70% of income. Benefits from a policy you paid for with after-tax dollars are usually tax-free.
Own-occupation pays if you cannot perform your specific job; any-occupation pays only if you cannot work any job. Own-occupation is more protective and costs more.
Group coverage often replaces less income than you would expect and may be taxable. Many workers add an individual policy to close the gap.
Long-term disability protects against the events that can end a career and drain savings, so it is usually the priority. Short-term coverage bridges brief gaps and is often offered through employers.
Interpret a quote with reading a disability insurance estimate, start with disability insurance basics, understand timing in what is a waiting period, and if you work for yourself, see insurance for the self-employed.
Benefit and premium estimates are based on 2026 individual long-term disability insurance rate data from major carriers, using the Council for Disability Awareness and Social Security Administration disability incidence statistics. Premium factors include income, occupation class, elimination period, benefit period, and own-occupation definition. Rates reviewed June 2026.
Data sources: