How much does disability insurance cost?

Typically 1-3% of your annual salary. On a $75,000 salary, expect $750-$2,250/year ($63-$188/month) for a long-term disability policy. Employer group plans are often cheaper or even free.

What's the difference between short-term and long-term disability insurance?

Short-term disability covers the first 3-6 months of disability (after a brief waiting period). Long-term disability starts after short-term ends and can cover you until age 65 or longer. Long-term disability is the more important one to have.

Should I Get Disability Insurance? Protecting Your Biggest Asset

Q: Should I get disability insurance?

Yes, if you depend on your income and don't have enough savings to live on indefinitely. About 1 in 4 workers will experience a disability lasting 90+ days before age 67. Disability insurance replaces 50-70% of your income if you can't work.

Yes, get disability insurance if you depend on your income. Your earning power is likely your most valuable asset — a 30-year-old earning $75,000/year has $2.5+ million in future earnings at stake.

Do You Need Disability Insurance?

Your Situation	Need It?
Working and depend on income	✅ Yes
No significant savings or investments	✅ Yes — essential
Self-employed	✅ Yes — no employer safety net
Physically demanding job	✅ Yes — higher risk
Desk job	✅ Still yes — most disabilities are from illness, not injury
Financially independent (can live off investments)	❌ No
Retired	❌ No

The Risk Is Real

Disability Statistic	Number
Chance of 90+ day disability before age 67	25% (1 in 4)
Average length of long-term disability	34.6 months
Percentage of disabilities caused by illness (not injury)	90%
Top causes	Back injuries, cancer, heart disease, mental health
Workers who couldn’t last 3 months without income	40%

Short-Term vs. Long-Term Disability

Feature	Short-Term Disability	Long-Term Disability
Waiting period	0-14 days	90-180 days
Benefit duration	3-6 months	2 years to age 65+
Income replaced	60-70%	50-70%
Monthly cost ($75K salary)	$25-$50	$63-$188
Priority	Nice to have	Essential

Long-term disability is far more important. You can survive a few months on savings; you can’t survive years without income.

How Much Coverage Do You Need?

Annual Salary	60% Benefit (Monthly)	Estimated Monthly Premium
$50,000	$2,500	$42-$125
$75,000	$3,750	$63-$188
$100,000	$5,000	$83-$250
$150,000	$7,500	$125-$375

Where to Get Disability Insurance

Source	Cost	Notes
Employer group plan	Often free or subsidized	Check if your employer offers it — many do
Individual policy	1-3% of salary	Portable (goes with you if you change jobs)
Professional association	Varies	Some offer group rates for members
Social Security Disability (SSDI)	Free (funded by payroll taxes)	Very hard to qualify; average benefit ~$1,500/month

The Bottom Line

Disability insurance is one of the most overlooked protections. Check if your employer offers it first (many provide free or subsidized coverage). If not, an individual long-term disability policy costing 1-3% of your salary protects your most valuable asset — your ability to earn income.