👤 Disability Insurance Needs Calculator

Why disability insurance matters

Most people insure their cars and homes but forget their most valuable asset: their ability to earn an income. Over 1 in 4 of today's 20-year-olds will become disabled before retirement. Disability insurance (also called income protection) replaces a portion of your paycheck if illness or injury stops you from working.

Key concepts

• Replacement ratio: policies typically replace 60–70% of your gross income. Insurers cap it here because benefits are often tax-free, roughly matching your after-tax take-home.
• Elimination (waiting) period: the time before benefits start — like a deductible measured in days. Common options: 30, 60, 90, or 180 days. Longer periods mean lower premiums.
• Benefit period: how long benefits last — 2 years, 5 years, or to age 65/67. Longer periods cost more but protect against long-term disability.
• Own-occupation vs. any-occupation: "own-occ" pays if you can't do your job; "any-occ" only if you can't do any job. Own-occ is more expensive but more protective.

How to close your gap

• First, check what your employer offers — group long-term disability often covers 50–60% of salary.
• Buy an individual policy to supplement group coverage up to your target replacement ratio.
• Build an emergency fund to cover your elimination period — this lets you choose a longer, cheaper waiting period.
• Buy young: premiums are lower and you're more likely to qualify before health issues arise.

This calculator provides estimates for educational purposes only and is not financial or insurance advice. Eligibility, benefit amounts, and premiums depend on your health, occupation, income documentation, and the insurer's underwriting.