Updated: November 20, 2019

How Much Long Term Disability Insurance Will Cost You

How much does long-term disability insurance cost? Find a complete breakdown of the fees and charges in our guide

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Richard Angliss

Author: Richard Angliss - Finance Expert

Updated: November 20, 2019

While long-term disabilities don’t affect everybody, sometimes they can develop unexpectedly and leave families in a tough financial position. So, if you’re considering taking out a long-term disability insurance policy, you’re probably also thinking about the costs involved.

The average cost of long-term disability insurance varies and depends on numerous factors and details. Even if you use a generic calculator, you won’t know the exact cost until you select a policy as it’s completely tailored to your needs.

To help you find out more about the cost of long-term disability insurance, we’ve written this article.

But if you speak with an insurance expert, they can give you an idea of what different long-term disability insurance policies cost and also which would best suit your needs thanks to their ‘whole-of-market’ access.

Call us on 0808 189 0463 or make an enquiry online and we’ll match you with an advisor shortly.

How much does long-term disability insurance cost?

The amount you’ll pay will depend on a number of details that are specific to your needs and preferences. Read on to find out what they are.

What factors affect long term disability insurance rates and premiums?

The main factors include…

  • The level of cover you choose
  • How long you must wait for the cover to be activated
  • How long your cover will last, or the policy cease age
  • The period over which your policy will payout
  • The type of premiums you choose
  • Which definition of incapacity your policy is for
  • Your age and health status
  • Your job and level of income
  • If you want group disability insurance
  • If you’re pregnant

As you can imagine, the cost of your long-term disability insurance policy may be more expensive if you opt for a high level of cover. It’ll also be affected if you want to be paid out as quickly as possible from the period of when you take out your policy, how long you want the policy to pay out for, and if all levels of incapacity are covered.

If you only want or need a lower level of cover, a short-term policy and other details that could result in a shorter period of payout, then the cost of your policy will likely also be lower.

An insurance provider will be able to provide you with a bespoke range of premiums you could expect. Make an enquiry to find out more.

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What is the average cost of long-term disability insurance?

Unfortunately, there’s no real average cost of long-term disability insurance in the UK. Indeed, depending on your age and the level and type of cover you need, you could be paying anything from around £20 per month to over £100 per month.

Of course, while there’s no real broad typical cost of this type of cover, there is an average cost for people in similar situations to yourself, and that’s something an experienced broker can help you with.

Qualified insurance brokers have access to the whole market and all the data that comes with it. That means they can help you understand the average costs of long-term disability insurance for your situation. They can also advise you on how to bring the cost down or why you might need a higher level of cover, which would result in a higher premium rate.

Make an enquiry and we’ll connect you with an expert right away.

Is there a long-term disability insurance calculator I can use?

While there are calculators online that can give you a rough idea of how much you’d expect to pay for a policy, it’s in your best interest to seek information from an insurance broker.

Online calculators are only designed to factor in basic details to calculate a broad quote, so depending on your situation and preferences, your quotes could vary in price. Insurance experts, on the other hand, are able to take every aspect of your circumstances into consideration and provide you with tailored, more accurate quotes.

It’s also worth highlighting that if you do you an online calculator to get an idea of the rates you could pay for your long-term disability insurance, you would need to share some personal information, which you may not be comfortable doing.

For a more accurate calculation tailored to your needs and circumstances, speak with an advisor.

Long-term disability insurance vs critical illness cover

If you undertake some of your own research about long-term disability insurance and how much it might cost, you might be wondering what the main differences between this and critical illness cover are.

In some cases, it may well be that critical illness is better suited for you.

However, to understand which product type meets your needs, you’ll need to understand the differences:

  • Disability insurance will pay out a monthly amount for a set period, while critical illness cover pays out a single lump sum.
  • Long-term disability insurance can pay out for mental health-related illnesses. While critical illness cover can also payout for mental health, you would typically have to declare it as an extra within your policy.
  • Partial refunds may be available for long-term disability insurance payments if the benefit is not claimed, but that’s not necessarily the case with critical illness insurance.
  • Monthly payouts from disability cover are based on your income, whereas critical illness insurance is a single lump sum based on your condition and premiums.

There are more details to consider when choosing between the two options and to help you make the right decision for your situation, and an experienced insurance advisor can answer all your questions.

Speak with an insurance advisor today

If you’re interested in taking out long-term disability insurance but are unsure of the costs and other important details, call us on 0808 189 0463 or make an enquiry and we’ll match you with an expert advisor who can help you.

Ask a quick question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in long-term disability insurance. Ask us a question and we'll get the best expert to help.

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Richard Angliss

Richard Angliss

Finance Expert

About the author

Richard Angliss has made a career in financial services which stretches over 40 years.

His early career was spent learning about the various financial products and applying them to prudent advice, working for one of the largest life assurance and investment firms. After that he joined the financial services arm of a very well-known firm providing independent advice to their 8 million customers.

For the last 20 years he has been involved in building software solutions that help Advisers and clients work together to achieve good financial outcomes and helping to set up three independent advisory firms. He also has written many articles for financial services publications and provided commentary for newspaper journalists.

At an early stage in his career he realised the great satisfaction that comes with being able to help people achieve their goals and protect their families. “Regulation of financial services has hugely impacted on ensuring people get appropriate advice. The issue these days is access to that advice and just as importantly regular reviews to make sure that everything stays on track”.

With the growing development of online resources such as Online Money Advisor he sees a great future for people to access advice to make their pension and investment work harder for them.  Plus, of course, to ensure they have insurance products in place that will be required when unforeseen events happen.

He knows getting that balance right is crucial to prudent financial planning and the wellbeing of individuals and their families.

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

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