How much does long-term disability insurance cost?

An individual long-term disability insurance policy costs about 1% to 3% of your annual salary, according to Life Happens, an industry-funded group that focuses on insurance education. For example, if you make $200,000 a year, individual disability insurance will likely cost $166 to $500 a month.

How much does disability insurance cost?

Disability insurance is typically low or no cost to the employee but you lose coverage if you change jobs. Disability insurance is available through the government in some cases. Social Security Disability Insurance (SSDI) is only available if you have worked and contributed to Social Security.

How much does short-term disability insurance cost?

An individual short-term disability insurance policy usually costs about the same as a long-term policy, but you get much less protection than long-term disability insurance since it only replaces your income for months rather than years. Lots of people get short-term disability insurance through work, often for free.