Disability Insurance — Protect Your Income
Replaces income if you can't work. Typically covers 60% of gross. 1 in 4 workers disabled before retirement.
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Aim for 60% of gross income Pay premiums after-tax for tax-free benefits Longer elimination period = lower premiums Own-occupation vs any-occupation matters
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Why: 1 in 4 workers disabled before retirement. Disability insurance protects your most valuable asset—earning ability.
How: Enter income, expenses, other income, years to retirement. Results show recommended benefit and lifetime value.
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Disability Insurance Calculator
Calculate coverage needs
Sample Scenarios
Your Situation
Recommended: $3,600/month
Covers 60% of income | Lifetime value: $1,080,000
Income Gap
$4,500
Monthly Benefit
$3,600
Annual Benefit
$43,200
Lifetime Value
$1,080,000
Calculation Breakdown
Income Analysis
Coverage Needs
Lifetime Value
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Estimates only — not an insurance quote or offer. Contact a licensed agent for actual rates.
💡 Money Facts
1 in 4 workers will be disabled before retirement.
— SSA
60% of income is typical max coverage—benefits replace income.
— Insurers
After-tax premiums = tax-free benefits when you claim.
— IRS
Own-occupation pays if you can't do your specific job.
— Policies
What is Disability Insurance?
Replaces income if you can't work due to illness or injury. Typically covers 60% of gross income. 1 in 4 workers disabled before retirement.
How It Works
Income gap = expenses − other income. Recommended benefit = min(60% of income, gap). Lifetime value = annual benefit × years to retirement.
Key Takeaways
- • Aim for 60% of gross income coverage
- • Pay premiums after-tax for tax-free benefits
- • Longer elimination period = lower premiums
- • Own-occupation vs any-occupation matters
Did You Know?
STD covers 3–6 months. LTD beyond. Group policies often insufficient. Own-occupation pays if you can't do your specific job.
Expert Tips
- • Review policy definitions
- • Consider residual benefits
- • Cost-of-living adjustment rider
STD vs LTD
Short-term: first 3–6 months. Long-term: beyond. Most need LTD; STD often from employer.
FAQ
Elimination period = wait before benefits. 90 days common. After-tax premiums = benefits tax-free.
Disclaimer: Consult an insurance professional.
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