Disability Income Insurance

How Much Do You Need?

According to the LIFE Foundation, one in seven workers will suffer a disability lasting five years or more before retirement.

If you were to become disabled due to an illness or injury, how would your cash flow be affected? Would you have enough income to meet monthly expenses? This calculator can help you estimate your need for income protection in the event you become disabled.

According to CNNMoney, nine out of 10 disabilities are caused by common illnesses and health conditions such as back problems rather than by injuries.


Based on the information you provided, the amount of income shortfall you might experience during a long-term disability is shown below.

Your Results

Your current monthly expenses: $0
Additional monthly expenses if you were disabled: $0
Your estimated total monthly expenses: $0
Your estimated monthly income during an extended disability: $0
Monthly funds available from other/retirement assets: $0
Your estimated additional monthly income needed: $0
The percentage of estimated total monthly expenses that you would need to replace in the event of a long-term disability: 0%

Long-term disability (LTD) benefits are taxable when the employer pays the premiums, reducing an already limited benefit. In addition, employer provided LTD, even if employee paid, may not be portable. Disability income insurance coverage is generally limited to 60 percent to 70 percent of salary and typically has a monthly cap. Income may not be fully covered due to the cap. Bonuses are not counted as covered income by most LTD policies.

Income may be available from the following sources, but only for a limited time:

  • Accumulated sick-pay benefits.
  • Salary continuation benefits.
  • Short-term disability benefits (typically one year or less, limited amount).

This chart shows the percentage of your monthly expenses that you may need to replace in the event of a long-term disability. A disability income insurance policy is one tool you may want to consider to help you address this potential shortfall. Social Security pays disability benefits, but you must be considered totally disabled, and it can be difficult to qualify for benefits.

Total Monthly Expenses