Freelancers and self-employed workers in the USA often enjoy the freedom of managing their own schedules and income, but this independence comes with risks. One of the biggest challenges is protecting your income if you become sick or injured and cannot work. Unlike traditional employees, freelancers do not receive disability insurance benefits from an employer.
This is where disability insurance becomes essential. It provides a safety net by replacing a portion of your income when you cannot work due to illness or injury. For self-employed workers and freelancers, disability insurance can be the difference between maintaining financial stability and struggling to cover basic expenses.
In this article, we will cover everything you need to know about disability insurance for freelancers. We will review the 15 best disability insurance providers in the USA, explain how disability insurance works, and help you choose the right plan.
What Is Disability Insurance and Why Do Freelancers Need It in the USA?
Disability insurance is a type of insurance that pays you a portion of your income if you are unable to work due to illness or injury.
Why it’s important for freelancers and self-employed workers
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No employer benefits: Freelancers do not have access to group disability insurance.
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Protects your income: If you cannot work, you still need to cover living expenses, debts, and business costs.
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Peace of mind: Disability insurance ensures you do not need to deplete savings or rely on others for support.
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Long-term financial stability: Many disabilities last weeks, months, or even years. Disability insurance helps maintain stability.
Types of Disability Insurance for Freelancers in the USA
Before choosing a provider, it’s important to understand the types of disability insurance available:
Short-Term Disability Insurance
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Replaces income for a short period (usually up to 6 months).
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Starts paying benefits within days of an injury or illness.
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Useful for temporary conditions like surgery recovery or pregnancy complications.
Long-Term Disability Insurance
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Covers serious illnesses or injuries that last longer than 6 months.
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Benefits may continue until retirement age.
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Essential for protecting long-term financial security.
Own-Occupation vs. Any-Occupation Policies
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Own-occupation: Pays benefits if you cannot perform the duties of your specific profession.
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Any-occupation: Only pays benefits if you cannot work in any job for which you are reasonably qualified.
Summary Table: 15 Best Disability Insurance Providers for Freelancers and Self-Employed Workers in the USA
| Insurance Provider | Type of Coverage | Waiting Period | Benefit Period | Key Features |
|---|---|---|---|---|
| Guardian Life | Short-term & long-term | 7–90 days | Up to age 65 | Strong financial ratings, flexible plans |
| MassMutual | Long-term | 30–90 days | Up to age 70 | Own-occupation definition available |
| Mutual of Omaha | Short-term & long-term | 14–90 days | Up to age 67 | Affordable premiums, simplified underwriting |
| Northwestern Mutual | Long-term | 30–90 days | To retirement age | High-quality riders, customizable coverage |
| Principal Financial | Short-term & long-term | 14–90 days | Up to age 65 | Comprehensive coverage for self-employed |
| Ameritas | Long-term | 30–90 days | Up to age 67 | Offers non-cancellable policies |
| The Standard | Long-term | 30–180 days | To retirement age | Great for high earners, strong stability |
| Breeze (by Assurity) | Short-term & long-term | 30–90 days | Up to age 65 | 100% online application and approval |
| Ohio National | Long-term | 30–180 days | Up to age 67 | Highly flexible terms, competitive rates |
| State Farm | Short-term & long-term | 14–90 days | Up to age 65 | Well-known brand, solid customer service |
| Petersen International Underwriters | Long-term | 30–180 days | Custom durations | Good for high-income freelancers |
| Guardian Berkshire | Long-term | 30–180 days | To retirement age | Premium disability coverage for professionals |
| Colonial Life | Short-term & long-term | 7–90 days | Custom durations | Affordable options for small budgets |
| Illinois Mutual | Long-term | 30–90 days | Up to age 67 | Good for blue-collar freelancers |
| Assurity | Long-term | 30–90 days | To retirement age | Strong online tools and living benefit riders |
Detailed Reviews: 15 Best Disability Insurance Providers in the USA
1. Guardian Life
Guardian Life offers flexible disability insurance plans for freelancers with both short-term and long-term options.
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Key benefits: Own-occupation policies available, customizable waiting periods, and strong financial stability.
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Why it’s great: Guardian has a reputation for excellent claims service and flexible riders like cost-of-living adjustments.
2. MassMutual
MassMutual provides long-term disability insurance with strong financial backing.
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Coverage: Offers own-occupation policies ideal for specialized freelancers.
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Unique features: Up to age 70 benefit period and additional riders like residual disability benefits.
3. Mutual of Omaha
Mutual of Omaha is known for affordable disability insurance policies that are easy to qualify for.
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Why freelancers like it: Simplified underwriting and budget-friendly premiums.
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Coverage: Short-term and long-term policies with flexible waiting periods.
4. Northwestern Mutual
Northwestern Mutual offers high-quality long-term disability insurance with robust riders.
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Key features: Non-cancellable policies, cost-of-living riders, and partial disability benefits.
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Why it’s great: Strong financial ratings and customizable plans.
5. Principal Financial
Principal Financial has a strong reputation among self-employed professionals.
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Benefits: Offers both short-term and long-term disability insurance with optional riders.
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Best for: Freelancers needing comprehensive coverage with adjustable benefit periods.
6. Ameritas
Ameritas provides reliable long-term disability insurance.
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Key advantage: Non-cancellable coverage and high maximum benefit amounts.
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Who should consider it: Freelancers with fluctuating incomes who want guaranteed rates.
7. The Standard
The Standard focuses on long-term disability insurance with strong financial protection.
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Benefits: Flexible benefit periods, including to retirement age, and multiple riders.
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Best for: High-earning freelancers seeking robust protection.
8. Breeze (by Assurity)
Breeze is a 100% online platform making disability insurance easy for freelancers to purchase.
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Why it’s popular: Quick online quotes, simple application, and affordable premiums.
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Coverage: Short-term and long-term policies with customizable terms.
9. Ohio National
Ohio National offers flexible long-term disability insurance tailored for self-employed individuals.
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Features: Competitive rates, residual disability coverage, and strong claims process.
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Why freelancers choose it: It allows customized benefit periods and elimination periods.
10. State Farm
State Farm is widely known and trusted in the USA.
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Benefits: Affordable short-term and long-term disability insurance with excellent customer service.
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Best for: Freelancers seeking a well-established company with strong support.
11. Petersen International Underwriters
Petersen specializes in high-limit disability insurance for high-income earners.
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Coverage: Can cover up to $100,000 per month in benefits.
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Why it’s unique: Provides niche solutions for freelancers with irregular or high earnings.
12. Guardian Berkshire
Guardian Berkshire provides premium disability insurance options with exceptional coverage.
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Best suited for: High-earning freelancers and self-employed professionals.
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Features: Comprehensive riders and benefit periods to retirement age.
13. Colonial Life
Colonial Life offers affordable disability insurance options for self-employed workers.
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Coverage: Both short-term and long-term options available.
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Why it’s great: Easy application process and customizable benefit periods.
14. Illinois Mutual
Illinois Mutual focuses on disability insurance for small business owners and freelancers.
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Best for: Freelancers in physically demanding jobs.
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Features: Affordable rates and simplified underwriting.
15. Assurity
Assurity provides strong long-term disability insurance options with great digital tools.
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Why it’s recommended: Living benefit riders and partial disability coverage available.
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Coverage: Can extend to retirement age with competitive premiums.
How to Choose the Best Disability Insurance for Freelancers in the USA
1. Determine the coverage amount you need
Calculate your monthly expenses and choose a policy that will cover at least 60–70% of your income.
2. Understand waiting and benefit periods
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Waiting period: Time before benefits start. Shorter periods cost more.
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Benefit period: How long benefits last. Longer benefit periods are more expensive but provide better protection.
3. Look for own-occupation policies
Own-occupation policies are better for freelancers because they pay if you cannot perform your specific job, even if you can work in another field.
4. Compare multiple quotes
Prices and benefits can vary greatly between companies. Always get quotes from at least three providers.
5. Review financial ratings
Choose insurers with strong ratings from agencies like AM Best to ensure they can pay claims.
FAQs: Disability Insurance for Freelancers and Self-Employed Workers in the USA
1. How much does disability insurance cost for freelancers?
On average, premiums range from 1–3% of your annual income depending on age, health, and coverage amount.
2. Can freelancers get disability insurance without a medical exam?
Yes, some providers like Breeze, Mutual of Omaha, and Colonial Life offer simplified underwriting without a medical exam.
3. Is long-term disability insurance worth it for freelancers?
Yes, because serious illnesses or injuries can last years. Long-term coverage provides essential income protection.
4. Can I deduct disability insurance premiums as a freelancer?
Generally, premiums for personal disability insurance are not tax-deductible, but benefits are tax-free.
5. How soon will I start receiving benefits?
This depends on your waiting period, which can be anywhere from 7 to 180 days.
6. Do I need both short-term and long-term disability insurance?
It depends on your savings. If you cannot cover 3–6 months of expenses, short-term coverage is helpful in addition to long-term.
7. What happens if I go back to work part-time?
Many policies offer residual or partial disability benefits, which pay a portion of your benefit if you can only work part-time.
8. Can older freelancers still get disability insurance?
Yes, but premiums are higher, and benefit periods may be shorter for applicants over 55.
9. Does disability insurance cover mental health conditions?
Some policies do, but the coverage can be limited. Always read the terms carefully.
10. Which company is the cheapest for freelancers?
Affordable options often include Breeze, Colonial Life, and Mutual of Omaha, but rates vary based on individual circumstances.
Conclusion
Disability insurance is a critical form of protection for freelancers and self-employed workers in the USA. Without an employer’s safety net, one illness or injury can lead to significant financial hardship.
The 15 best disability insurance providers listed in this guide such as Guardian Life, MassMutual, Mutual of Omaha, and Breeze offer a wide range of plans designed to protect your income.
If you are a freelancer, take the time to compare quotes, evaluate benefit periods, and choose a plan that fits your income and lifestyle. By securing the right disability insurance, you can continue to enjoy the freedom of self-employment with the peace of mind that your income is protected.