Calculate how much disability insurance you need to protect your income.
Email your personalized insurance needs assessment
No spam, ever. We only email you about topics you care about. Unsubscribe anytime.
Target coverage = Gross monthly income × 60-70%. Coverage gap = Target - existing employer/group benefit - SSDI estimate. Long-term disability insurance should cover the gap.
Target 60-70% of pre-disability income. Group employer coverage often covers 60%. If not enough, buy individual supplemental policy.
Short-term: covers 3-6 months, replaces 60-70% income. Long-term: kicks in after short-term ends, can cover until age 65. Both are important.
1-3% of annual income per year for individual long-term disability. A $100K earner pays $1,000-$3,000/year. Worth every penny.
"Own occupation" definition: you can't do your specific job. "Any occupation" (cheaper): you can't do any job at all. Always buy own-occupation coverage if you can.
Employer coverage is usually 60% of salary, taxable. Individual coverage is tax-free. Often supplemental coverage makes sense to fill the gap.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.