Disability Insurance Calculator
Calculate coverage needs and premiums for income protection
Calculate Disability Coverage
Personal Information
Women typically pay more for disability insurance
Income & Expenses
Typical: 60-70% of gross income
Monthly benefit from employer plan
Policy Configuration
How long benefits are paid
Longer wait = lower premium
Policy Features & Riders
Your Coverage & Premium Estimate
Benefit Details
Cost Analysis
⚠️ Coverage Gap Identified
Consider purchasing additional individual disability insurance to close this gap.
Key Insights
Understanding Disability Insurance
Why You Need It
1 in 4 workers will become disabled before retirement. Disability insurance replaces 60-70% of your income if you can't work due to illness or injury. It's your paycheck protection - protecting your ability to earn income, which is your most valuable asset.
Short-Term vs Long-Term
- • Short-Term Disability (STD): Covers 3-6 months, shorter elimination period
- • Long-Term Disability (LTD): Covers years or to age 65, longer elimination period
- • Best protection: Both policies working together with overlapping coverage
Own-Occupation vs Any-Occupation
- • Own-Occupation: Pays if unable to work in YOUR specific job (best coverage)
- • Any-Occupation: Only pays if unable to work in ANY job (cheaper, less protection)
- • Professionals should strongly consider own-occupation coverage
Premium Factors
Must-Have Features
Non-Cancelable & Guaranteed Renewable
Premiums can't increase, policy can't be cancelled
Own-Occupation Definition
Best protection for professionals
Residual/Partial Benefits
Pays if working part-time
COLA Rider
Benefits keep pace with inflation
Disability Statistics
Disability Insurance Deep Dive
How Much Coverage Do You Need?
Most experts recommend replacing 60-70% of your gross income. Benefits are usually tax-free if you pay premiums with after-tax dollars, so 60% net benefit roughly equals your current take-home pay. Insurers typically won't cover more than 70% to maintain work incentive.
Elimination Period Strategy
- •30-60 days: Use for short-term disability or if limited savings
- •90 days: Most common, good balance of cost and protection
- •180-365 days: If you have 6-12 months emergency fund (saves 25-40%)
Benefit Period Selection
Lower cost, sufficient for recoverable conditions
Best value, covers entire working career
Most expensive, rare but maximum protection
Individual vs Employer Coverage
Employer Group Policy
- ✓ Lower cost or free
- ✓ No medical underwriting
- ✗ Any-occupation definition
- ✗ Limited to 60% of salary (capped)
- ✗ Benefits may be taxable
- ✗ Lose coverage if you change jobs
Individual Policy
- ✓ Own-occupation available
- ✓ Portable (keep when changing jobs)
- ✓ Tax-free benefits
- ✓ Guaranteed renewable
- ✓ Better riders available
- ✗ Higher cost
- ✗ Medical underwriting required
Best strategy: Use employer coverage as base, supplement with individual policy to fill gaps.
Common Riders & Add-Ons
COLA Rider
Benefits increase 3% annually or with CPI. Essential for long-term disabilities.
Future Increase Option
Increase coverage as income grows without new medical exam. Great for young professionals.
Residual/Partial Disability
Pays proportional benefit if working part-time. Critical for realistic recovery scenarios.
Return of Premium
Get premiums back if no claims. Expensive, usually not worth it.