Voluntary Disability Insurance Calculator

Employee-paid disability coverage offered through an employer's benefits platform, typically supplementing employer-paid group LTD. Premiums are after-tax (so benefits are tax-free), and coverage is often portable when leaving the job.

Tax treatment of benefits matches premium tax treatment. After-tax premiums = tax-free benefits. With a 60% income replacement target, after-tax benefits effectively replace 80%+ of pre-disability take-home pay vs. ~45% if benefits were taxed.

Often yes. Group LTD typically caps at 50-60% of base salary (excluding bonus/commissions) and is taxable if employer-paid. Voluntary buy-up can raise replacement to 70-80% on a tax-free basis - particularly valuable for high earners and commissioned roles.

Voluntary and individual disability policies typically replace 40 to 70 percent of your gross income, capped at a monthly maximum. Insurers deliberately keep it below 100 percent so you retain a financial incentive to return to work. If you pay premiums with after-tax dollars, the benefit you receive is generally tax-free.

The elimination (waiting) period is how long you must be disabled before benefits begin, commonly 30, 60, 90, or 180 days. A longer elimination period lowers your premium but means you need more emergency savings to cover the gap. Match it to how many months of expenses you can self-fund.

Own-occupation pays if you cannot perform the duties of your specific profession, even if you could work in another field, and is the stronger (and pricier) definition. Any-occupation pays only if you cannot work in any job suited to your training and experience, so claims are harder to win. Check which definition your policy uses.