Disability insurance calculator
Calculate how much monthly disability benefit you need and estimate the cost of a policy.
Disability insurance calculator
Calculate how much disability insurance income replacement you need to protect your lifestyle.
Rent/mortgage, food, utilities, minimum debt payments
Employer group LTD, SSDI estimate, or 0 if none
This is an estimate for informational purposes only based on national and state averages. Actual rates vary by insurer and individual circumstances. For an accurate quote, contact a licensed insurance agent.
Your income is your most valuable asset
A 35-year-old earning $80,000/year has $2.4 million in potential lifetime earnings remaining. Yet most people insure their $25,000 car far more carefully than their income. The Social Security Administration estimates that a 20-year-old has a 25% chance of becoming disabled before retirement age. Disability insurance protects the asset that makes everything else possible.
What to look for in a disability policy
The four most important features: own-occupation definition (especially for specialized professionals), non-cancelable and guaranteed renewable (insurer cannot raise your rates), residual disability rider (pays partial benefits if you return to work part-time), and cost-of-living adjustment (COLA) rider that increases benefits with inflation during a long-term disability.
The 90-day elimination period sweet spot
Most financial advisors recommend a 90-day elimination period paired with 3-6 months of emergency savings. The premium difference between a 30-day and 90-day elimination period can be 20-30%. That savings — invested over the working years — typically exceeds the extra benefit you would receive from the shorter elimination period. Reserve the premium savings for your emergency fund instead.