Disability Insurance Calculator
Find your coverage gap and estimate the cost of disability insurance based on your income and occupation.
Your Profile
Policy Options
Recommended Monthly Benefit
$4,063/mo
Benefit period: To Age 65
Est. Premium
$91/mo
% of Income
1.5%
Coverage Analysis
Risk Factors
No employer coverage
You have no disability safety net
Coverage Tips
- Without employer coverage, individual disability insurance is critical — 1 in 4 workers will be disabled before 67.
Premium estimates are approximate. Actual rates depend on your specific health, occupation, and insurer underwriting guidelines.
Why Disability Insurance Matters
Your ability to earn income is your most valuable financial asset. A 35-year-old earning $75,000 will earn over $2 million before retirement. Disability insurance protects that income if injury or illness prevents you from working. The Social Security Administration estimates that more than 1 in 4 of today's 20-year-olds will become disabled before reaching age 67 — and most disabilities aren't caused by dramatic accidents. Back problems, cancer, heart disease, and mental health conditions are the leading causes.
Disability Insurance Cost by Age and Occupation (2026)
Monthly premium for $3,000/month benefit, 90-day elimination, to age 65:
| Age | White Collar | Light Manual | Heavy Manual |
|---|---|---|---|
| 30 | $45-65 | $70-100 | $100-150 |
| 35 | $55-75 | $80-115 | $120-175 |
| 40 | $65-90 | $95-135 | $145-210 |
| 45 | $80-110 | $115-165 | $175-255 |
| 50 | $100-140 | $145-205 | $220-320 |
Key Policy Features to Compare
| Feature | Basic Policy | Comprehensive Policy |
|---|---|---|
| Definition of disability | Any occupation | Own occupation |
| Benefit period | 2-5 years | To age 65 |
| Elimination period | 90 days | 90 days |
| COLA rider | No | Yes (2-3%/yr) |
| Residual/partial disability | No | Yes |
| Non-cancellable | Sometimes | Yes |
Employer vs Individual Disability Insurance
| Feature | Employer Group | Individual Policy |
|---|---|---|
| Cost | Often free or subsidized | You pay full premium |
| Coverage amount | Typically 60% of base salary | Up to 60-70% of total income |
| Tax on benefits | Taxable (if employer pays premium) | Tax-free (you paid with after-tax dollars) |
| Portability | Lose it when you leave | Stays with you |
| Definition | Usually "any occupation" | "Own occupation" available |
Frequently Asked Questions
What percentage of my income should disability insurance cover?
Insurers typically cap individual coverage at 60-70% of your gross income, combined with any employer coverage. This is intentional — if disability paid 100% of your income, there would be less incentive to return to work. If you pay your own premiums with after-tax dollars, your benefits are tax-free, so 60% of gross often replaces 80%+ of take-home pay.
What's the difference between short-term and long-term disability?
Short-term disability (STD) covers the first 3-6 months of a disability. Long-term disability (LTD) kicks in after STD ends and can last for years or until age 65. Many employers offer STD; LTD is the critical coverage most people lack. If you have STD, you can choose a longer elimination period (180 days) on your LTD policy to reduce premiums.
Does Social Security Disability Insurance (SSDI) count?
SSDI exists but is extremely hard to qualify for — the SSA defines disability as being unable to do ANY substantial work. About 65% of initial applications are denied. Even if approved, the average SSDI benefit is only about $1,500/month. Private disability insurance fills the gap between what SSDI provides and what you actually need.
See also: Life Insurance Needs Calculator and Emergency Fund Calculator.