Best Disability Insurance Companies for 2025

Disability insurance is one of the most important types of coverage you can have, yet it’s often overlooked. Many people assume that disabilities only happen in extreme situations, like accidents or severe illnesses. However, the reality is that one in four working adults will experience a disability before reaching retirement age. If you’re unable to work due to an injury or illness, disability insurance ensures you continue to receive a portion of your income, helping you cover everyday expenses and maintain your financial security.

With so many options available, choosing the best disability insurance companies can feel overwhelming. In this guide, we’ll break down the top providers for 2025, key features to look for in a policy, cost expectations, and how to find the right plan for your needs.

What Is Disability Insurance?

Disability insurance acts as a financial safety net by replacing a percentage of your income if you’re unable to work due to illness or injury. There are two primary types:

• Short-Term Disability Insurance (STDI): Designed for temporary conditions like surgery recovery, pregnancy, or minor injuries. Benefits typically last from a few months up to a year.

• Long-Term Disability Insurance (LTDI): Covers more serious, long-lasting conditions, often providing benefits for several years—or even until retirement.

Most employers offer some form of disability coverage, but individual policies often provide more comprehensive protection. If you’re self-employed or your employer’s plan has gaps, securing a private disability insurance policy may be a smart move. If you’re a freelancer or business owner, check out our guide on the best disability insurance for self-employed professionals to find coverage tailored to your needs.

Key Factors to Consider When Choosing a Provider

Not all disability insurance policies are created equal. Here are some critical factors to consider when comparing providers:

1. Pricing and Premiums

The cost of a disability insurance policy depends on multiple factors, including your age, health, occupation, income level, and the policy’s benefit amount. On average, premiums range from 1% to 3% of your annual salary. For example, if you earn $60,000 per year, you can expect to pay around $600 to $1,800 annually for a long-term policy.

Looking for an affordable option? Our guide to the cheapest disability insurance can help you find budget-friendly policies without sacrificing coverage.

2. Coverage Definitions: Own Occupation vs. Any Occupation

Disability policies define “disability” in different ways:

• Own Occupation: You’re considered disabled if you can’t perform the duties of your specific job.

• Any Occupation: Benefits are only paid if you’re unable to work any job for which you’re qualified.

“Own Occupation” policies offer stronger protection, especially for professionals with specialized skills (e.g., doctors, lawyers, engineers).

3. Additional Riders & Customization Options

Many policies allow you to add optional riders to enhance coverage, such as:

• Cost of Living Adjustment (COLA): Adjusts benefits over time to keep up with inflation.

• Future Increase Option: Lets you increase coverage as your income grows, without medical underwriting.

• Residual Disability Rider: Provides partial benefits if you can work part-time but not full-time.

4. Exclusions and Limitations

Most disability insurance policies have exclusions. Common ones include:

• Pre-existing conditions (may be covered after a waiting period).

• Mental health conditions (many policies limit benefits to 12–24 months).

• High-risk activities (injuries from extreme sports may not be covered).

5. Insurer’s Financial Strength and Customer Reviews

It’s crucial to choose a company with strong financial stability to ensure they can pay claims in the long run. Look for high ratings from agencies like A.M. Best, Moody’s, and Standard & Poor’s. Additionally, check customer reviews for insights into claim approval rates and service quality.

Best Disability Insurance Companies for 2025

Here’s a look at the top disability insurance companies that provide excellent coverage and financial security:

1. Guardian Life

• Best for: Comprehensive long-term disability coverage.

• Why It Stands Out:

• Offers true own-occupation policies.

• Multiple riders available, including COLA and future increase options.

• Strong A++ financial rating (highest possible).

2. MassMutual

• Best for: Customizable plans with strong policyholder benefits.

• Why It Stands Out:

• Mutual company, meaning policyholders share in company profits.

• Highly adjustable waiting periods and benefit structures.

• Strong financial stability (A++ rating).

3. Principal Financial Group

• Best for: Affordable long-term disability coverage.

• Why It Stands Out:

• Competitive pricing with flexible benefit periods.

• Well-rated customer service and claims processing.

• Strong presence in employer-sponsored disability plans.

4. Mutual of Omaha

• Best for: Short waiting periods and simplified application.

• Why It Stands Out:

• Offers group and individual disability policies.

• Straightforward underwriting with fast approvals.

• Ideal for people looking for affordable short-term disability insurance.

5. Breeze

• Best for: Budget-friendly policies and easy online application.

• Why It Stands Out:

• Streamlined 100% online application process.

• Perfect for self-employed individuals and gig workers.

• Affordable long-term disability options with flexible terms.

How to Get Disability Insurance

If you’re ready to secure coverage, applying for a policy is easier than ever. You can now apply for disability insurance online and get coverage in just minutes. The process typically involves:

1. Getting a disability insurance quote to compare rates. Start here: Get a quote.

2. Filling out an application online or through an agent.

3. Medical underwriting, if required. Some policies offer simplified approval.

4. Policy approval and activation, providing income protection for your future.

Final Thoughts

Disability insurance provides essential income protection if you ever face an injury or illness that prevents you from working. With many providers available, selecting the right one requires careful comparison of coverage options, costs, and financial stability.

By choosing a reputable company like Guardian, MassMutual, or Principal, you can ensure you have reliable financial protection in place for the future. Ready to explore your options? Compare rates now and secure the best disability insurance for your needs!