Best California Disability Insurance Companies 

California disability insurance companies offer policies to residents ensuring financial support in case of injury or illness that prevents them from working. These companies cater to the specific needs and regulations set by the state of California, ensuring tailored coverage for individuals and businesses alike.

TOP 5+ California Disability Insurance Companies 

Here are the top five disability insurance companies in California, known for their reliability, comprehensive coverage, and excellent customer service.

TOP 5+ California Disability Insurance Companies

Mutual of Omaha

Why We Picked It

Disability insurance seekers can easily choose from a wide range of benefits with Mutual of Omaha’s Income Solutions policy. Plus, the convenience of online quotes and the flexibility in benefit duration make it a top choice.

Pros & Cons

Pros

  • Monthly Benefit: Available as low as $300.
  • Short Coverage Option: Choose a 6-month benefit period for minimal coverage.
  • Return of Premium Rider: Get back 50% or 80% of premiums paid every 10 years, excluding claims, up to a $12,000 monthly maximum.
  • True Regular Occupation Rider: Receive full benefits if unable to work in your profession but working elsewhere.
  • Residual Disability Rider: Provides a percentage of your benefit if you’re partially disabled.
  • Household Discount: 10% off if your spouse or partner also needs coverage.
  • Extended Benefit Periods: Options include 10 years or up to age 70.
  • Coverage Age Range: Suitable for ages 18 to 61.

Cons

  • Competitor Advantage: Some offer a monthly benefit higher than $2.

MassMutual

Why We Picked It

MassMutual’s Radius Choice policy stands out due to its generous disability benefits. Moreover, it compensates an amount mirroring both your and your employer’s contributions to a qualifying retirement plan, as if you continued working.

Pros & Cons

Pros

  • High Monthly Benefit: Up to $30,000 available in most states.
  • Extended Benefit Periods: Options up to 10 years or until age 70.
  • RetireGuard Rider: Compensates for both your and your employer’s missed contributions to a defined contribution plan due to disability.
  • Spousal Discount: 10% off for spouses.
  • Short-Term Disability Rider: A great option if not provided by your employer.
  • Coverage Age Range: For ages 18 to 64 (18–60 in Florida).

Cons

  • Online Quotes: Not available.
  • 30-Day Elimination Period: Not offered, unlike leading competitors.

Ameritas

Why We Picked It

The Ameritas DInamic Cornerstone Income Protection policy offers various protection levels, including a $30,000 monthly benefit. Additionally, if you’ve been tobacco-free for the past year, you can enjoy premium discounts.

Pros & Cons

Pros

  • Short Benefit Period: One-year option available for those seeking brief coverage.
  • Variety of Riders: Eight on offer, including a student loan rider for loan payment reimbursements.
  • Discount Opportunities: Several discounts available, including for being tobacco-free in the past year.
  • Customizable Definitions: Three “disability” definitions to tailor when you receive payments.
  • Coverage Age Range: For ages 18 to 64, surpassing many competitors that cap at age 60.

Cons

  • Benefit Payments: Payment up to age 70 is not an option.
  • Online Quotes: Not available.

Assurity

Why We Picked It

Assurity’s Century+ policy offers a wealth of benefits due to its diverse rider options. The policy’s maximum monthly benefit and elimination periods further elevate its standing.

Pros & Cons

Pros

  • Diverse Riders: 10 options available, including critical illness and return of premium riders.
  • Online Quotes: Available for convenience.
  • Coverage Age Range: For ages 18 to 60.
  • Benefit Length: Limited options compared to leading competitors.
  • Occupation-Dependent Benefits: Maximum benefits vary based on your profession.

Cons

  • Benefit Payments: Payment up to age 70 is not an option.

Principal

Why We Picked It

With the Principal Income Protector disability insurance policy, high earners can secure significant monthly payments. Additionally, if you meet the eligibility criteria, you can get coverage approval within just a few days.

Pros & Cons

Pros

  • Generous Monthly Benefit: Offers up to $35,000 a month, surpassing competitors who typically max at $30,000.
  • Quick Approval: With the simplified underwriting process, those under age 51 seeking up to $10,000 monthly benefit can be approved within days after answering a few questions.
  • Work Hour Flexibility: Available for those working more than 20 hours a week.
  • True Own Occupation Rider: Allows benefit receipt even if working in a different occupation than your original.
  • Death Benefit Rider: Provides a lump sum to beneficiaries if you pass away while on disability benefits.
  • Online Quotes: Conveniently available.

Cons

  • 30-Day Elimination Period: Not available, whereas leading competitors offer this.
  • 10-Year Benefit Period: Not offered, a contrast to many top competitors.

What Is Disability Insurance?

Disability insurance provides financial protection by compensating a percentage of your income if illness or injury prevents you from carrying out primary functions of your job.

Types of Disability Insurance

Disability insurance comes in two forms: short-term and long-term. If provided by your employer, you’ll likely have access to both. For specifics on workplace disability insurance, it’s best to refer to your benefits package or consult with your HR department. For those purchasing individual disability insurance independently:

  • Short-term disability insurance typically covers a brief period, like one to three years.
  • Long-term disability offers more extended coverage. You can select either a set duration, like five or ten years, or opt for coverage up to a certain age, such as 65.

Where to Buy Disability Insurance

Many obtain disability insurance via their workplace, but if that’s not an option for you, individual policies can be purchased. Specifically, most people get short-term disability insurance from their employers. The plans mentioned earlier are for individual long-term disability coverage.

Where to Buy Disability Insurance

To buy from a private insurer, you’ll need to reach out to an agent representing that company. Many insurers offer agent connections on their websites, and some even provide online quotes.

Furthermore, there’s government-backed disability insurance like Social Security Disability Insurance (SSDI). However, SSDI is accessible only if you’ve contributed to Social Security through work. To claim SSDI, you’ll need to navigate a potentially complex application process and, once approved, might wait some time before receiving payments.

How Does Disability Insurance Work?

When you sign up for an individual disability insurance plan, you’ll pay premiums monthly. If you fall ill or get injured and can’t work, this policy will cover part of your income. Notably, employer-provided disability insurance often includes pregnancy coverage.

For those with workplace insurance, employers typically cover a basic plan. Still, there’s often an option to enhance your benefits at an additional cost.

On the other hand, if you’re purchasing a personal disability insurance policy, you can choose both the waiting time before payouts start (known as the elimination period) and how long you’ll receive benefits. These waiting periods can range from 30 days to two years. Opting for a longer waiting time can lower your monthly premiums.

What Does Disability Insurance Cover?

Disability insurance generally provides a portion of your salary or a set monthly amount for a designated time once benefits start. If getting insurance from your job, it’s wise to ask HR how they define “disability.”

What Does Disability Insurance Cover?
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When purchasing individual coverage, it’s crucial to understand the policy’s “disability” definition, as it impacts your payment eligibility. You often have options regarding this definition, and by adding a rider, you can opt for a broader interpretation. Common definitions include being unable to perform “any occupation” versus your “own occupation.”

Any Occupation

If an illness or injury stops you from working in any job, you’ll get monthly disability benefits. This is a strict definition of disability. For instance, a shoulder injury might stop you from your usual role, but you could still manage desk work with similar pay. With an “any occupation” policy, you wouldn’t receive benefits in such scenarios.

Own Occupation

If you can’t carry out the main tasks of your specific job, you may receive disability benefits. Some policies even offer full benefits if you take up another role. This represents the most favorable terms for claiming disability benefits. Always inquire with your insurance agent about the availability of an “own occupation” rider, and check if it covers you should you switch to a different job.

What Does Disability Insurance Not Cover?

A disability policy typically lists specific exclusions, meaning it won’t cover disabilities resulting from:

  • Acts of war.
  • Pregnancy, unless there are related complications.
  • Engaging in illegal activities or committing a felony.
  • Direct involvement in violent acts.
  • Deliberately causing harm to oneself. Additionally, if a disability begins while you’re in prison, it might not be covered.

How Much Does Disability Insurance Cost?

An individual long-term disability insurance typically amounts to around 1% to 3% of your yearly income, as noted by the industry-supported educational group, Life Happens. So, for an annual salary of $200,000, you’d likely pay between $166 to $500 monthly for this insurance.

Factors Affecting the Cost of Disability Insurance

The cost of disability insurance hinges on several factors:

  • Your job: Riskier professions often mean higher premiums.
  • Your health: During the application process, you’ll typically answer health questions. Existing health issues, chronic diseases, or smoking habits can raise the price.
  • Age and gender: Buying insurance later in life generally costs more, especially for men.
  • Definition of disability: Policies using the “own occupation” definition tend to be pricier than the “any occupation” ones.
  • Policy details: The cost varies based on the duration of benefits, the monthly payout, and the waiting period before benefits begin.

How to Choose the Best Disability Insurance for Your Needs

To figure out the ideal amount of disability insurance for you, start by tallying your monthly bills, like rent, utilities, groceries, and insurance. Subtract any alternate income sources you’d have without your regular salary, like a partner’s earnings or sick pay. The resulting amount is the disability coverage you’d need.

Methodology

To identify the top disability insurance providers, we thoroughly assessed long-term disability policies, emphasizing their most robust benefits. Our ratings were determined based on these criteria:

  • Maximum Monthly Benefit (25% of the score): Higher benefit policies received better scores.
  • Elimination Period Options (25% of the score): Policies with shorter waiting periods before benefits begin scored higher.
  • Benefit Duration by Age (20% of the score): Policies extending benefits up to age 70 were favored.
  • Benefit Duration by Years (20% of the score): Those offering a 10-year benefit span received extra points.
  • Online Quoting Availability (10% of the score): Companies offering online quote capabilities were awarded additional points.

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