Disability Insurance Cost

• Expect to pay between 1 percent and 3 percent of your annual salary for a good disability plan, according to DisabilityQuotes.com. That works out to $600-$1,800 for someone earning $60,000 a year.
• Disability insurance provides income to help pay your living expenses if you are unable to work for a significant length of time because of injury or illness. Generally benefit payments are 60 percent of your total salary.
• Short-term disability polices have a waiting period of 0-14 days and pay benefits for no more than two years. Long-term disability policies usually have a waiting period of several weeks to several months and benefits could be paid a few years up to the rest of your life, depending on the policy terms.
• States such as Hawaii, New Jersey, New York and Rhode Island requires employers to provide disability benefits for up to 26 weeks, according to the Insurance Information Institute. Some employers provide short-term disability insurance, although often the employees have to pay the premiums.

• Premiums are lower for policies with a longer waiting period before benefits begin and/or a shorter benefit period.

• The Federal Citizen Information Center gives a detailed overview of long term disability insurance, listing common terms and tips for buying.
• Insurance4USA.com provides online quotes.
• Your state insurance department can give you a list of registered disability insurance companies in your area. The National Association of Insurance Commissioners gives links to these state offices and has a database to search for financial details and complaint histories for specific companies.

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