Ask any financial adviser what is the most often underrated type of insurance, and virtually all will mention disability insurance.
Many people ignore disability insurance, oblivious to the fact there’s a much higher likelihood they’ll have a long-term disability than they’ll die before the age of 65.
With the numerous providers of disability insurance out there, it can be hard to find the best one for your needs. So, we’ve compiled a list of the best disability insurance companies to choose from.
Top 10 Disability Insurance Companies
If you are self-employed and looking for a reliable disability insurance company, you can’t go wrong with Assurity.
Assurity understands that people have different needs, and hence offers several different policies to suit different needs. Those policies include:
- Individual disability income insurance
- Simplified disability income insurance
- Grade-benefit disability income insurance
- Business overhead expense disability income insurance
Mutual of Omaha
If you’re looking for a disability insurance company that can tailor a policy based on your personal needs, you should consider Mutual of Omaha.
This company has a range of benefits that set it apart from its competitors. If you purchase their long-term disability insurance policy, for example, you’ll get to enjoy the following perks:
- Total disability income benefit
- A proportionate disability benefit
- A waiver of the premium rider
These benefits are guaranteed renewable until you’re 67 years of age. If you’re still in full-time employment after the age of 67, Mutual of Omaha can cover you until you turn 75.
Guarding life is committed to providing the best disability insurance coverage to executives. It has four different products that you can choose from including:
- Individual disability insurance
- Group disability insurance
- Disability insurance for business owners
- Supplementary disability insurance
Guardian’s ProVider Plus can’t go unmentioned. With the ProVider Plus individual long-term disability insurance policy, you can work in another occupation and still get insurance benefits.
Guardian also offers an Optional Student Protection Rider, which can give you up to $2,000 a month income replacement to cover your student loan payment.
PIU (Petersen International Underwriters)
Petersen International Underwriters focuses on offering disability insurance for high-income earners. If you feel you would lose a lot of income should you get incapacitated and unable to work, PIU is your ideal disability insurance company.
If you have an existing health condition and want to purchase a disability insurance policy, PIU can help you too.
MassMutual is another insurance company that is ideal for high-income earners. You must be making at least $800,000 a month and earning up to $50,000 in tax-free benefits per month to qualify for a MassMutual insurance policy.
If you are looking for the best disability insurance for your company’s executives, MassMutual won’t disappoint. Some of its products include:
- Radius Executive Select Program, which provides level premiums, portability, and non-cancelable disability insurance coverage for high-income
- Radius disability income insurance for various occupational levels.
Ohio National boasts high ratings from various rating agencies such as the Better Business Bureau (BBB) and AM Best, thanks to its exceptional customer service and financial strength among other factors.
Ohio National’s most remarkable product is their ContinuOn Income Solutions, a non-concealable and guaranteed-renewable long-term disability insurance policy that targets individuals between the ages of 18 and 70.
This plan comes with a residual rider that can pay out part of the policy if you lose your income but can still work. Ohio National’s Hospice care benefit can’t go unmentioned.
Namely, the insurer waives your elimination period if you become disabled and you receive hospice benefits.
Illinois Mutual offers an individual disability income insurance policy dubbed Personal Paycheck Power. This policy is guaranteed renewable when you turn 67 and conditionally renewable when you turn 75.
It comes with some extra benefits, namely:
- Cost of living adjustment (COLA) rider, which raises the amount of base payment benefit.
- Optional Own Occupation extension rider, when you turn 67.
Principal Financial Group
Principal Financial Group has been in business since 1879, and hence boast extensive industry experience. This award-winning company offers individual disability income insurance, which can be purchased either as an individual plan or an employee benefit.
You must work at least 20 hours a week to be eligible for these policies, and you can receive up to $6,000 per month in simplified underwriting. You also have the option of undertaking the full underwriting if you wish to get more coverage.
The standard gives you three options of disability insurance coverage, which encompass the following:
- Business protection
- Income protection
- Guaranteed standard issue
The policies are designed to meet different needs. The income protection policy, for example, is characterized by:
- Benefit periods of 2, 5, or 10 years to age 65 or 67.
- Own Occupation definition of disability
- Elimination periods of 30 days up to 730 days.
- Optional Non-cancelable rider
- Optional student loan rider for physicians and dentists
- Optional indexed cost of living benefit rider of 3 or 6 percent.
Ameritas gives you two options of disability insurance, namely:
- DInamic Foundation
- DInamic Fundamental
With DInamic Foundation policy, you get access to many exciting benefits, including:
- Non-disability injury benefit, which refunds your medical expenses
- COBRA Premiums benefit, which will refund your premiums if you lose health insurance coverage due to disability.
If you prefer easy and quick approval, the DInamic Fundamental plan would be your ideal option. It has a more simplified underwriting process than its Foundation counterpart.
Keep in mind, however, that you should be working at least 30 hours a week in a low-risk job to qualify for the Fundamental plan.
Short Term vs. Long Term Policies
There are two primary types of disability insurance policies:
- Long-term disability (LTD) insurance
- Short-term disability (STDI) insurance
Short-term disability insurance policies pay benefits for short periods, usually three months to one year, after the elimination period. This type of insurance policy can be extremely costly to purchase as an individual.
However, short-term group plans usually are less expensive compared to long-term group plans. Most employers provide a short-term group policy as a company-paid benefit to their employees.
Long-term disability insurance policies, on the other hand, pay benefits for a longer term usually two years, five years, or ten years to at least age 65, depending on the policy. Elimination period for LTD is at least 90 days.
Additional Riders to Consider
When choosing a disability insurance policy, it’s advisable to consider what additional riders it has to offer. Common riders include:
- Residual or partial disability benefit
- Retirement protection
- Critical illness benefit
- Future purchase option
- Student loan
- Cost of living adjustment
It’s worth noting that some of these riders may increase the cost of your disability insurance policy. Consider consulting a reputable insurance professional about the various riders to ensure the policy doesn’t strain your budget.
We can never fully predict what will happen in the future. You may be okay and fully-able to work today, but things can change in an instant and nobody expects an accident—that’s why it’s called an accident, and why it is imperative that you have insurance coverage that allows you to go through life with confidence.
Disability insurance is a great way to protect your financial future.