Disability Insurance Calculator
Essential bills and costs
Savings to cover expenses
Monthly benefit from employer/other
Recommended Monthly Benefit
$4,300.00
Additional coverage needed
Total Monthly Need
$4,225.00
65% of income
Coverage Analysis
Annual Income
$78,000.00
At risk if disabled
Emergency Runway
3 months
$15,000.00 saved
Monthly Shortfall
$5,000.00
Without additional coverage
Estimated Monthly Premiums
| Benefit Amount | Age 30 | Age 40 | Age 50 |
|---|---|---|---|
| $3,000.00/mo | $45 | $75 | $120 |
| $4,000.00/mo | $60 | $100 | $160 |
| $5,000.00/mo | $75 | $125 | $200 |
| $6,000.00/mo | $90 | $150 | $240 |
*Estimates for own-occupation policy to age 65. Actual rates vary by health, occupation, and policy features.
Types of Disability Insurance
Short-Term Disability (STD)
- Covers 3-6 months typically
- Usually 60-70% of income
- Often provided by employers
- Shorter elimination period (7-14 days)
Long-Term Disability (LTD)
- Covers until age 65 or recovery
- Usually 50-60% of income
- Longer elimination period (90+ days)
- More critical for income protection
Key Policy Features
- Own-Occupation vs Any-Occupation:Own-occupation pays if you can't do your specific job. More expensive but provides better protection.
- Elimination Period: Waiting period before benefits start (30-180 days). Longer periods = lower premiums.
- Benefit Period: How long benefits are paid (2 years, 5 years, to age 65).
- Non-Cancelable:Premiums can't increase and policy can't be canceled as long as you pay.
Did You Know?
- 1 in 4 workers will experience a disability before retirement age
- Most disabilities are caused by illness, not accidents
- Social Security disability is hard to qualify for and pays limited benefits
- Disability insurance premiums are typically 1-3% of income
About the Disability Insurance Calculator
The Disability Insurance Calculator estimates how much income-replacement coverage you need if an illness or injury keeps you from working. Because your ability to earn is often your largest financial asset, this tool focuses on protecting that paycheck rather than a death benefit, which makes it a complement to the Life Insurance Calculator.
It works by taking your gross income and applying a target replacement ratio, typically 60 to 70 percent, which reflects what most policies pay and the fact that benefits from individually-paid policies are usually tax-free. The calculator then nets out any employer-provided group disability coverage and other income sources so you can see the monthly benefit gap an individual policy should fill.
Typical use cases include sizing a long-term disability (LTD) policy, evaluating whether your workplace group coverage is enough, and planning around an elimination period, the waiting time before benefits begin. Self-employed people and high earners often find the largest gaps, since group plans cap benefits and may not cover bonus or commission income.
A useful tip is to weigh a longer elimination period (often 90 days) against a healthy emergency fund to lower premiums, and to look for an own-occupation definition that pays if you cannot perform your specific job. Always check whether the benefit is taxable, since pre-tax employer plans reduce your effective replacement rate.
Frequently asked questions
- What percentage of income does disability insurance replace?
- Most policies replace about 60 to 70 percent of gross income. Benefits from a policy you pay for with after-tax dollars are typically tax-free, which makes that ratio closer to your real take-home pay.
- What is an elimination period?
- It is the waiting period between when you become disabled and when benefits start, often 30, 60, or 90 days. A longer elimination period lowers your premium but requires a larger emergency fund to bridge the gap.
- Is employer group disability coverage enough?
- Often not. Group plans cap monthly benefits, may exclude bonus and commission income, and pay taxable benefits if the employer funds the premium, so a supplemental individual policy frequently fills a meaningful gap.
- What is own-occupation versus any-occupation coverage?
- Own-occupation pays if you cannot perform your specific profession, while any-occupation only pays if you cannot work any job you are reasonably suited for. Own-occupation is more protective and more expensive.