Disability Insurance Calculator — Income Protection Needs
Your ability to earn is your biggest asset — a 35-year-old earning $75k has $2M+ of future income at stake, and about 1 in 4 workers experiences a disability lasting a year or more before retirement. Size the monthly benefit that would keep your household solvent.
Common group plans cover 50–60% — check your benefits portal.
Spouse income available for your share of expenses, rental income, etc.
- Target total benefit (60% of income)
- $3,750.00
- Employer plan benefit
- $0.00
How this calculator works
- Individual policies typically insure up to ~60% of gross income (insurers won't cover 100% — you must be better off working). The gap is that target, capped at your essential expenses, minus employer benefits and other income.
- Key policy features worth paying for: 'own-occupation' definition, benefit to age 65, and a rider letting you increase coverage as income grows.
Frequently asked questions
Isn't Social Security disability enough?
SSDI averages roughly $1,500–1,600/month, denies most first-time applications, and requires proving you can't do virtually any job. It's a floor, not a plan.
Are employer LTD benefits taxed?
If the employer pays the premium, benefits are taxable income — so a '60%' plan nets more like 45%. Benefits from a policy you pay with after-tax dollars arrive tax-free.
What does individual coverage cost?
Rule of thumb: 1–4% of income per year, driven by age, occupation class, and health. White-collar workers in their 30s often see $40–90/month per $3,000 of monthly benefit.
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Disclaimer: Results are estimates for educational purposes only and are not tax, legal, or financial advice. Tax rules are simplified (credits, phase-outs, and local taxes may not be modeled). Verify important decisions with the IRS, your state tax authority, or a licensed professional.