Cover the paycheck you cannot afford to lose.
If an injury or illness kept you from working, would your bills still get paid? Enter your income, essential expenses and any coverage you already have to see the exact monthly benefit gap you need to fill.
Your situation
Other income can be a spouse's pay you would rely on, rental income, or a benefit like Social Security disability once approved.
What your numbers say
Income, benefit and expenses side by side
Monthly comparison
Coverage scorecard
Benefit needed at different expense levels
The benefit gap you would need if your essential expenses were higher or lower, holding your current coverage steady.
Disability insurance, explained
Why Disability Insurance Matters
20% of Americans become disabled before retirement. Disability income loss is statistically more likely than death yet far less insured. Without it, savings deplete quickly.
Coverage Targets
Aim for 60-70% of pre-tax income replacement. Employer coverage often 40-60% only. Personal supplement closes the gap. Total benefits over 70% reduce incentive to return to work, IRS rules apply.
Short vs Long-Term Disability
Short-term: 90 days - 1 year. Long-term: 1 year through retirement. Both useful but long-term is the catastrophic protection. Most employer plans include both.
Own-Occupation vs Any-Occupation
Own-occupation: pays if you can't do YOUR job (better, more expensive). Any-occupation: only pays if you can't do ANY job (cheaper, more restrictive). Professionals should buy own-occupation.
Common questions
Do I need it if I have an emergency fund?
Probably yes. Emergency funds cover 3-6 months. Long-term disability could last decades. Insurance handles the catastrophic risk.
Is employer disability enough?
Often not, typical group LTD covers 40-60% of base salary, no bonuses. Personal supplement is common.
Cost of personal disability insurance?
1-3% of income for professionals. $80k earner: $800-2400/year. Cheaper if employer-subsidized.
Are benefits taxable?
Premium-paid-with-after-tax-dollars: benefits tax-free. Employer-paid premiums (pre-tax): benefits taxable. Plan accordingly.
What's elimination period?
Waiting period before benefits start. Shorter (30-90 days) = higher premium. Longer (180+ days) = lower premium if you have emergency fund.
Estimates for planning only. Actual coverage needs depend on your policy definitions (own-occupation vs any-occupation), elimination period, whether benefits are taxable, and your full financial picture. Confirm details with a licensed advisor before you buy.