Disability Insurance Calculator

The Social Security Administration estimates a 20-year-old worker has a 1 in 4 chance of becoming disabled before retirement age. The Council for Disability Awareness reports 90% of long-term disabilities are caused by illness, not accidents.

Replace 60-70% of gross income (the standard cap insurers offer). If your group LTD covers 60%, individual supplemental coverage can fill the gap. Benefits from employer-paid policies are taxable; individually-paid premiums produce tax-free benefits.

Own-occupation pays if you can't perform YOUR specific job (best for surgeons, dentists, attorneys). Any-occupation only pays if you can't do ANY job suited to your training. Own-occupation costs 20-50% more but provides much stronger protection.

Not for individuals: you pay the premium with after-tax dollars, but the benefit is tax-free. If your employer pays the premium as a pre-tax benefit, the insurance payments will be taxable as income.

Yes, but many policies limit benefits for mental health and substance abuse to 24 months, even when the rest of the benefit runs to age 65. Check that clause explicitly if you work in a high-exposure profession.

Modern policies include "residual" or "partial" disability: they pay a proportional benefit when you return to work at reduced income. It's an essential feature, so confirm your policy includes it at no extra charge.