Disability Insurance Need Calculator
Estimate how much monthly disability coverage you need to protect your income after any employer benefit.
How it works
Target benefit = income × replace% · Gap = max(0, target − existing) · Protected income = gap × 12 × years
A disabling illness or injury is more likely to interrupt your income during working years than an early death, yet disability is far more often uninsured. Group and employer policies usually replace only 60% of base pay and are taxable when the employer pays the premium, so a private policy often fills a real gap. Match the benefit to your take-home need and choose an elimination period you can bridge with savings.
Worked example
On $6,000/month, replacing 65% is a $3,900 target. If your employer plan pays $1,500, the gap is $2,400 a month. Over 25 working years that protects roughly $720,000 of income.
Frequently asked questions
How much of my income can I insure?
Insurers typically cap total disability coverage at 60–70% of gross income, because benefits from an individually paid policy are usually tax-free — replacing much more would pay you to stay disabled.
Isn't my employer coverage enough?
Group long-term disability often replaces only 60% of base salary, excludes bonuses, is capped, and stops if you leave the job. A supplemental individual policy is portable and can cover the shortfall.
What is an elimination period?
It is the waiting time between becoming disabled and when benefits start — commonly 90 days. A longer elimination period lowers the premium but requires more emergency savings to bridge the gap.
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Educational estimate, not insurance or financial advice — real premiums and coverage depend on underwriting, your state and the specific policy.