How likely is a disability?
The SSA's long-standing estimate is that more than one in four of today's 20-year-olds will become disabled before reaching retirement age. Data from the Council for Disability Awareness points the same way, though its figures date from 2012–2013:
- About 90% of disabilities were caused by illness rather than accidents, and fewer than 5% of disabling accidents and illnesses were work related. That means workers' compensation usually won't apply.
- The leading causes of new long-term disability claims were musculoskeletal disorders (28.5%), cancer (14.6%), injuries (10.6%), mental disorders (8.9%) and heart and circulatory conditions (8.2%).
- The average group long-term disability claim lasted 34.6 months.
- About one in eight workers would be disabled for five years or more during their careers.
- A typical 35-year-old woman had a 24% chance, and a typical 35-year-old man a 21% chance, of a disability lasting three months or longer during their working careers, based on the group's calculator.
The point is not that disability is likely to happen to you this year. It is that a long absence from work, often from an ordinary illness, is common enough over a 40-year career to plan for.
What your employer's coverage probably pays
Start by finding out what you already have. In March 2026, 44% of private-industry workers had access to short-term disability coverage and 37% to long-term coverage, according to the Bureau of Labor Statistics. Access is not the same as enrollment, so check whether you signed up.
Short-term disability covers the first weeks or months, and policies usually last no more than six months. Long-term coverage is what protects you from the expensive scenario: years without pay.
Group long-term policies typically replace 40% to 65% of pre-tax pay, according to Life Happens. The details are in your plan's schedule of benefits. MetLife's published sample shows the terms to look for:
| Plan term | Sample value | Why it matters |
|---|---|---|
| Benefit | 40% of salary | Your income drops by more than half |
| Monthly maximum | $6,000 | Higher earners get a smaller share of pay |
| Elimination period | 90 days | No benefit for the first three months |
| Definition of disability | Own occupation for 24 months, then any occupation | After two years, benefits can stop if you could do some other job |
| Offsets | Reduced by government benefits and other income | An SSDI award lowers the group payment |
| Mental illness limit | 24 months | Benefits for these conditions end sooner |
| Pre-existing conditions | 3-month lookback, 12 months of coverage | Recent conditions may be excluded at first |
Source: MetLife, Reading your LTD Schedule of Benefits (sample plan). Your employer's plan may differ.
Taxes cut the benefit further. If your employer pays the premiums, or you pay them pretax through a cafeteria plan, the benefits are taxable income. If you pay with after-tax money, they are tax-free, according to the IRS.
The reality of Social Security disability (SSDI)
SSDI is the government backstop. It is valuable, but it is not designed to replace your income.
The definition is strict
You must be unable to do substantial work because of a medical condition expected to last at least 12 months or result in death. The condition must keep you from your past work and any other work in the national economy. In 2026, earning more than $1,690 a month ($2,830 if blind) generally counts as substantial work.
Most applications are not approved at first
| Decision level (2023 applications) | Allowance rate |
|---|---|
| Initial decision | 34.5% |
| Reconsideration | 12.7% |
| Hearing or above | 50.4% |
| Overall award rate (all applications) | 23.8% |
Source: SSA, Annual Statistical Report on the SSDI Program, 2024, Section 4. Allowance rates are medical allowances divided by medical decisions at each level. 192,883 applications from 2023 were still pending, so final rates may change.
It takes a long time
Benefits don't start until you have been disabled for five full calendar months. Processing adds more time. Pending initial claims fell from 1.27 million in June 2024 to under 830,000 by early 2026, and SSA says initial decisions were about 45 days faster than a year earlier. Even so, one analysis of SSA data put the average initial decision at about 180 days in February 2026, with reconsideration taking roughly three to six months and a hearing eight to 14 months more. SSDI can pay up to 12 months of back benefits before your application date, but you need money to live on while you wait.
The checks are modest
The average disabled worker received $1,630 a month in January 2026, after a 2.8% cost-of-living increase. A disabled worker with a spouse and children averaged $2,937.
Gap analysis: a worked example
Here is how to estimate your own shortfall. Take a worker earning $72,000 a year ($6,000 a month before tax) whose essential monthly costs, including rent, food, insurance, transportation and debt payments, are $4,500.
| Scenario | Monthly benefit | Gap vs. $4,500 costs |
|---|---|---|
| No disability coverage, SSDI not yet approved | $0 | $4,500 |
| SSDI only, at the 2026 average | $1,630 | $2,870 |
| Group plan paying 40% (like MetLife's sample) | $2,400 before tax | $2,100 or more |
| Group plan paying 60% (high end of typical range) | $3,600 before tax | $900 or more |
Source: our illustration using SSA's 2026 average SSDI benefit, MetLife's sample plan and Life Happens' 40%–65% range. Gaps are before taxes; if your employer pays the premium, benefits are taxable and the real gap is larger.
Three things to notice:
- The first months are uncovered. With a 90-day elimination period, the first three months come from savings or short-term coverage. An emergency fund covering at least that period is the first layer of protection.
- SSDI doesn't stack. If you are approved for SSDI while on group benefits, a plan with an offset like MetLife's sample reduces its payment by the SSDI amount. Your total stays the same.
- Caps hit higher earners. At $150,000 a year, a 60% benefit would be $7,500 a month, but a $6,000 cap limits it to 48% of pay.
Do you need to buy your own policy?
An individual long-term policy is worth considering if any of these apply:
- You have no employer coverage, including if you are self-employed.
- Your gap after group coverage and taxes is more than your budget can absorb for months or years.
- You earn enough that your group plan's monthly cap leaves a large share of pay unprotected.
- You have skills specific to your job and want own-occupation coverage that lasts beyond the 24 months in plans like MetLife's sample.
- You may change jobs and want coverage that goes with you. Some insurers, such as Principal, sell individual policies that are portable across jobs.
Coverage you pay for yourself with after-tax money pays tax-free benefits. Life Happens puts the cost of long-term coverage at about 1% to 3% of salary. For a $72,000 earner, that is roughly $720 to $2,160 a year. You can lower the price with a longer elimination period, if your savings can cover it.
Before buying, gather three documents: your employer's schedule of benefits, your latest Social Security statement, and a list of your essential monthly costs. With those, you can fill in the worked example above with your own numbers.
You may need less if you have substantial savings or investments, a working spouse whose income covers essential costs, or few debts and dependents.
To compare policy terms and insurers, read our guide to the best disability insurance companies. Disability coverage protects your income while you are alive; life insurance protects your family if you die. For other coverage types, see our insurance hub.
Frequently asked questions
What are the chances I'll become disabled?
The Social Security Administration estimates that more than one in four 20-year-olds will become disabled before reaching retirement age. Older industry data found about 90% of disabilities come from illness rather than accidents.
Isn't Social Security disability enough?
For most people, no. In 2026 the average disabled worker received $1,630 a month. Benefits start only after a five-month waiting period, the definition of disability is strict, and only 34.5% of 2023 applications were allowed at the initial decision.
How long does an SSDI decision take?
It varies. Pending initial claims fell to under 830,000 by early 2026, and one analysis of SSA data put the average initial decision at about 180 days. Appeals can add many more months.
Does my employer's disability insurance cover enough?
Check your schedule of benefits. Group plans typically replace 40% to 65% of pre-tax pay, often with a monthly cap, a 90-day waiting period, and taxable benefits if your employer pays the premium. Only 37% of private-sector workers have access to long-term coverage.
How much does individual disability insurance cost?
Life Happens estimates long-term coverage at about 1% to 3% of your annual salary. A longer elimination period, a shorter benefit period or a lower benefit can reduce the price.
Are disability benefits taxable?
Benefits from a policy your employer paid for, or that you paid pretax, are taxable. Benefits from a policy you paid for with after-tax money are not, according to the IRS.
Sources
- Social Security Administration – Disability facts poster
- Social Security Administration – 2026 COLA Fact Sheet
- Social Security Administration – Annual Statistical Report on the SSDI Program, 2024, Section 4
- Congressional Research Service – SSDI: The Five-Month Waiting Period for Benefits
- CPA Practice Advisor – Social Security cuts backlog of disability claims by 30%
- Disability Exchange – SSDI backlog and processing time, May 2026 update
- Bureau of Labor Statistics – Employee Benefits in the United States, March 2026
- MetLife – Reading your LTD Schedule of Benefits
- Life Happens – How much does disability insurance cost?
- IRS – Life insurance & disability insurance proceeds
- MoneyCrashers – 7 Best Disability Insurance Companies
- Council for Disability Awareness – Disability statistics (2013)
Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.