Disability Insurance Calculator
Calculate how much disability insurance coverage you need to protect your income and maintain your standard of living if you become unable to work.
Income Protection
Protect 60-70% of your income if disabled
Benefit Periods
Choose short-term or long-term coverage
Financial Security
Maintain your lifestyle during recovery
Why You Need Disability Insurance
Disability insurance is often overlooked but crucial for financial security:
- High Risk: 1 in 4 workers will become disabled before retirement
- Limited Benefits: Social Security disability is difficult to qualify for
- Income Replacement: Typically covers 60-70% of your income
- Essential Expenses: Maintain mortgage, bills, and living costs
- Medical Costs: Cover treatment and rehabilitation expenses
Types of Disability Insurance
Short-Term Disability (STD)
Covers 3-12 months of disability with benefits of 40-60% of income. Often provided by employers.
Long-Term Disability (LTD)
Covers disabilities lasting longer than 90 days, typically until age 65. Provides 60-70% of income.
Social Security Disability
Government program with strict qualification requirements and limited benefits.
Coverage Guidelines
Coverage Amount
Aim for 60-70% of your gross income to maintain standard of living.
Waiting Period
Longer waiting periods (90+ days) reduce premiums significantly.
Employer Coverage
Check existing employer benefits before purchasing individual coverage.
Cost
Typically costs 1-3% of your annual income for comprehensive coverage.
Important Policy Features
Essential Features:
- •Own-Occupation Coverage: Pays if you can't perform your specific job
- •Guaranteed Renewable: Cannot be canceled due to health changes
- •Cost of Living Adjustment: Benefits increase with inflation
- •Partial Benefits: Covers reduced earning capacity
Optional Add-ons:
- •Future Increase Option: Buy more coverage without medical exam
- •Return of Premium: Get premiums back if no claims filed
- •Student Loan Rider: Additional coverage for loan payments
- •Social Security Substitute: Extra coverage if SSDI is denied