Disability Insurance Calculator
Calculate how much disability insurance coverage you need to protect your income. Find out your monthly benefit requirement, estimated premium, and how long your savings can cover the elimination period.
How Disability Coverage Is Calculated
Most disability policies replace 60–70% of gross income. Premiums typically range from 1–3% of the covered annual income, varying by occupation class, age, benefit period, and elimination period. Longer elimination periods reduce premiums.
How to Use This Calculator
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1Enter Your Income & ExpensesUse your monthly gross income (before tax). Essential expenses help determine the minimum benefit you need.
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2Add Existing CoverageInclude any short-term disability from employer, group LTD, or government benefits. This reduces the gap you need to cover.
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3Select Elimination PeriodThis is your waiting period before benefits begin. 90 days is most common. A longer elimination period lowers your premium.
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4Choose Benefit Period"To age 65" provides the longest protection but costs more. 2 or 5-year benefit periods are more affordable.
Frequently Asked Questions
Disability insurance replaces a portion of your income (typically 60–70%) if you become unable to work due to illness or injury. Short-term disability covers weeks to a few months, while long-term disability can pay benefits until retirement age. It is often called the most overlooked essential insurance.
The elimination period (also called the waiting period) is the time between when you become disabled and when benefits begin — similar to a deductible measured in days. Common periods are 30, 60, 90, or 180 days. A longer elimination period lowers your premium but requires more savings to bridge the gap.
Social Security Disability Insurance (SSDI) exists but has a strict definition of disability and average benefits of around $1,200–$1,500/month. Approval rates are low and the process can take 1–3 years. Most financial planners recommend private disability insurance as SSDI alone is insufficient for most income levels.
Short-term disability covers the first 3–6 months (often provided by employers). Long-term disability picks up after. Ideally you want both. If your employer provides short-term, you may only need to purchase long-term privately. The most financially devastating scenario is a multi-year disability without long-term coverage.
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