Free disability insurance calculator — estimate how much long term disability coverage you need
This free disability insurance calculator (also a long term disability calculator) helps you figure out how much disability insurance you need. Most people think they'll never become disabled — but the stats say otherwise: 1 in 4 of today's 20-year-olds will become disabled before they retire.
If you can't work, how would you pay your bills? Your savings would run out fast. Disability insurance replaces a portion of your income if you can't work due to illness or injury.
Financial experts recommend replacing 60-70% of your gross income. If you make $80,000/year, you need about $4,000-4,700/month in disability benefits.
Disability insurance typically costs 1-3% of your annual income. On an $80k salary, that's $80-200/month. It's one of the best values in insurance.
This is the most important thing to look for in a policy:
Own-occupation policies are more expensive, but they're worth it for professionals.
The elimination period (or waiting period) is how long you have to wait after becoming disabled before benefits kick in. Typical options: 30, 60, 90, 180 days.
Longer elimination periods = cheaper premiums. Most people choose 90 days — that's 3 months of expenses you should have in your emergency fund anyway.
Yes! Especially if you're young and rely on your income. You're 3x more likely to become disabled than to die before 65. Most people have life insurance but forget disability. 1 in 4 of today's 20-year-olds will become disabled before retirement.
Typically $80-200/month for someone in their 30s making $80k. It depends on your age, health, job, and how much coverage you buy. Women pay more than men (because they file more claims). Smokers pay more.
Short-term disability covers you for 3-6 months. Long-term disability kicks in after that and can last until retirement. Most employer plans only give you 40-60% of your income — you may want to buy more on your own.
No — workers comp only covers injuries that happen at work. Most disabilities (back problems, cancer, depression, diabetes) happen off the job. That's why you need your own policy.
Usually not. Group plans through work only cover 40-60% of your salary, and they're "any-occupation" (harder to qualify for). Also, if you leave your job, you lose the coverage. Individual policies are portable and own-occupation.
Yes! In fact, self-employed people need it even more — you don't have employer sick leave or disability benefits. You can buy individual disability insurance policies designed for freelancers and business owners.