Compare 25+ disability insurance company reviews

A fifth of Americans have a disability insurance policy, according to LIMRA’s Life Insurance Barometer Study 2019. If you want to join the millions of Americans with income protection, you have a range of insurers to choose from.

Compare reviews of the top disability insurance companies across the country — including the type of coverage, benefits and riders they offer.

Compare 25+ disability insurance reviews

The largest disability insurance companies in the US

There were over 4 million policies in force as of 2017, according to the Insurance Information Institute . Policyholders paid more than $5.5 billion in premiums that year.

Around four in ten businesses provide disability insurance as part of their employee benefits, according to LIMRA. And in some states — like California, New York and Rhode Island — employers are legally required to offer short-term disability policies.

The biggest short-term disability insurers

These are the largest group short-term disability insurance companies, according to Milliman’s most recent US Group Disability Survey from 2017.

The biggest long-term disability insurers

These insurers dominate the group long-term disability insurance market. To compare, The Hartford, Unum and Cigna were the three largest insurers in both categories.

How to compare disability insurance companies

If you’re in the market for a disability insurance policy, it’s a good idea to compare policies from multiple companies. Keep these factors in mind:

Financial strength and reputation

To boost your chances of a better customer experience, look for an insurer with an A or A+ rating with the Better Business Bureau, and few customer complaints.

As for financial strength, an A or A+ rating with AM Best means the insurer has the cash reserves to pay out claims in the foreseeable future.

Base policy details

As a policyholder, you have the flexibility to choose when and for how long you’ll receive disability benefits. When you’re comparing insurers, consider:

• Elimination period. This is the length of time you’ll need to wait before you start receiving benefits. To decide on an elimination period, work out how long you can survive without your paycheck. The options available to you will depend on your insurer and whether you’re buying a short- or long-term policy. A 14-day elimination period is common for short-term policies, while a 90-day period is the most popular choice for long-term disability.
• Benefit period. Once the elimination period has passed, the benefit period begins — aka the amount of time you’ll receive weekly or monthly benefits. Your insurer may pay benefits for a number of years , or up until a specific age or retirement age. The shorter the benefit period, the lower your premiums — but the benefits could end while you’re still disabled.
• Coverage amount. The coverage you qualify for comes down to your income and occupation. It’s typically measured as a percentage of your paycheck, so pick an insurer that can pay out the amount of money you’ll need if you become disabled.
• Renewability. Most disability insurance policies will have one of two renewability provisions. With non-cancellable policies, the price and coverage stays the same as long as you pay your premiums. And guaranteed renewable policies renew automatically, but the insurer might raise the rate.

The definition and extent of disability

This definition of disability can vary between insurers, so be sure to read the fine print of your policy. An own occupation policy pays out if you can’t work in your usual job, but you can work a different job. On the other hand, any occupation policies pay benefits if you can’t perform any job.

As for the extent of disability, some policies will only pay benefits if you’re totally disabled. Others offer partial benefits, which means you can qualify for benefits if you’re still able to work — but not as much or as often as you did before your disability.

Types of disabilities covered

The list of covered disabilities varies — for example, some policies only cover disabilities arising from accidents, not illnesses. Before committing to a policy, read over the list of specified disabilities and make sure you’re comfortable with it.

Built-in policy features

These are the features that are included in an insurer’s standard policy, though eligibility is based on your personal profile. At a minimum, we recommend these features: waiver of premium, presumptive total disability and an automatic increase benefit.

Available riders

Most insurers allow you to customize your coverage with riders, such as a future purchase option, student loan, retirement protection or critical illness riders. If these add-ons are important to you, look for insurers that offer them.

Cost

The price of a disability policy can vary significantly based on the monthly benefit amount, benefit period and elimination period, as well as your age, gender, health and occupation. To get the lowest possible rate, get quotes from multiple companies.

What to watch out for when purchasing a policy

When you’re shopping around for a policy, look out for these restrictions:

• Integration clause. Some policies have an integration clause of six or 12 months. This means your other sources of income — like Social Security or workers compensation — may be deducted from your benefit.
• Pre-existing condition limitation. This limitation excludes coverage for any disability resulting from a condition that you had before your policy went into effect.
• Mental illness limitation. Another common limitation is reducing payouts for mental illness to only one or two years.
• Exclusions. Most insurers won’t pay out for disabilities resulting from acts of war, self-inflicted acts or criminal activities. And some insurers won’t pay out if you become disabled due to a high-risk hobby, like skydiving.

Bottom line

A disability insurance policy can protect your paycheck if you suffer an illness or injury and can no longer work. There are dozens of reputable carriers competing for your business in the US, so be sure to compare disability insurance companies to get the best possible premium and policy.

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Written by

Katia Iervasi

Writer

Katia Iervasi is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in insurance. Her writing and analysis on life, disability and health insurance has been featured in The Washington Post, Forbes, Yahoo, Entrepreneur, Best Company and FT Advisor. She holds a BA in communication from Australia's Griffith University. See full bio