Is Long Term Disability Insurance Worth It?

Have you ever contemplated what would happen if an injury or illness left you unable to work for an extended period? Long term disability insurance is an insurance policy that pays you a percentage of your income if you become unable to work due to illness or injury.

Why is Long Term Disability Insurance Necessary?

Think of long term disability insurance as your financial safety net. It provides a continuous income stream if you can't work because of a disabling illness or injury. It's about securing your future in the face of uncertainty. Read on to learn more about long term disability insurance and if it’s worth it in 2023.

The Benefits of Long Term Disability Insurance

Financial Security

Long term disability insurance offers financial security. Should you ever become unable to work, it's a relief to know that a portion of your income will continue, allowing you to handle your bills and living expenses.

Peace of Mind

This form of insurance provides peace of mind. Even if the worst happens, you can focus on your recovery without the added stress of financial insecurity.

Protection for Dependents

If others rely on your income, long term disability insurance can provide them with the necessary financial support.

The Drawbacks of Long Term Disability Insurance


The cost of premiums can be a significant drawback. It's essential to evaluate your finances and decide if this is an affordable option for you.

Waiting Period

There's often a waiting period before the benefits kick in. This period can last several months, during which you'll need to cover your expenses independently.

Policy Restrictions

Policies can include restrictions, such as not covering certain illnesses or pre-existing conditions. It's crucial to read the fine print carefully.

Who Should Consider Long Term Disability Insurance?

High-Risk Occupations

People in high-risk occupations are more likely to need this insurance. If your job has a higher chance of injury, it's wise to consider this protection.

Those with Dependents

If others depend on your income, such as children or a non-working spouse, this insurance can provide necessary financial stability.

Individuals Without Sufficient Savings

If you don't have enough savings to cover your expenses for an extended period, long-term disability insurance can act as a financial buffer.

Assessing Your Personal Risk

When contemplating the worth of long-term disability insurance, it's essential to consider your risk. Several factors come into play - your current state of health, lifestyle habits, and the nature of your work. 

For example, if you work in a physically demanding job or one with higher injury risks, your need for such insurance might be greater. Similarly, if you have a chronic health condition, you could be more susceptible to periods of disability. Weighing these factors can provide a clearer picture of how vital long-term disability insurance could be for your financial security.


1. What is the average cost of long term disability insurance?

The cost can vary greatly based on several factors, including age, income, occupation, and overall health.

2. Does long term disability insurance cover mental illness?

Some policies do cover mental illnesses, but this is not universal. Always check the specific policy terms.

3. Can I get long term disability insurance if I have a pre-existing condition?

Some insurers may exclude pre-existing conditions or charge higher premiums. It's best to discuss this with potential insurers.

4. Is long term disability insurance taxable?

If your employer pays for your premiums, your benefits may be taxable. However, if you pay your premiums with after-tax dollars, your benefits will typically be tax-free.

5. What percentage of my income will long term disability insurance replace?

Most plans will replace between 50% and 70% of your income.


Deciding if long term disability insurance is worth it ultimately depends on your circumstances. Considering your occupation, financial status, and dependents can help you make an informed decision. However, one fact remains clear - the peace of mind and financial stability it provides can be priceless in a time of need. 

Learn more about short term disability insurance from our blogs at Disability Help. Protection Status