SSDI is the federal disability program with a strict definition of disability. Average benefit is ~$1,580/mo in 2026. There is a mandatory 5-month waiting period. Only about 30% of initial applications are approved, and the process typically takes 6-24 months. SSDI should not be your primary disability income plan.

Disability Insurance Calculator

Q: Do I need disability insurance if my employer provides STD?

STD alone is not enough. It only covers 3-6 months. If your employer provides STD but not LTD, you have a critical gap after month 6. An individual LTD policy bridges this gap. Even employer LTD typically covers only 40-60% of base salary, is taxable if employer-paid, and ends when you leave.

Q: What is an elimination period?

The elimination period is the number of days you must be disabled before benefits begin. Common options are 30, 60, 90, or 180 days. A 90-day elimination period is most common and offers the best balance of cost and protection. Longer periods mean lower premiums but require more savings.

Q: What is the difference between own-occupation and any-occupation?

Own-occupation policies pay if you can't perform your specific job. Any-occupation policies only pay if you can't do any job you're qualified for. Own-occupation is more expensive but provides better protection, especially for specialized professionals.

Calculate your income gap without disability insurance, estimate LTD policy costs by age and occupation, and see a month-by-month timeline of your finances during disability. 1 in 4 workers will be disabled before retirement.

Calculate how much disability coverage you need based on income and expenses

Gross monthly income

Pre-tax monthly salary or self-employment income

Mortgage / rent

Utilities

Electric, gas, water, internet, phone

Food / groceries

Insurance premiums

Health, auto, home -- costs that continue if disabled

Debt payments

Car loan, student loans, credit cards

Other expenses

Childcare, subscriptions, etc.

Employer short-term disability?

STD typically covers 3-6 months

Employer long-term disability?

Group LTD typically covers 60% of base salary

SSDI estimate

Social Security disability. Average ~$1,580/month. Check ssa.gov for your estimate.

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How to Use This Calculator

Coverage Need tab

The default tab. Enter your gross monthly income and monthly expenses (mortgage, utilities, food, insurance, debt payments, other). Add any employer STD/LTD coverage and SSDI estimate under "More options." The calculator shows your income gap and recommended coverage amount (typically 60-70% of gross income minus existing coverage).

Policy Cost Estimator tab

Estimate your disability insurance premium. Enter your age, occupation class (1-4), and monthly benefit amount. Expand "More options" to adjust benefit period (2yr/5yr/to-65), elimination period (30/60/90/180 days), and riders (COLA, own-occupation, future increase). Note: actual premiums vary by insurer.

Disability Scenario tab

Model the financial impact of a disability. Enter your current savings, monthly expenses, and existing coverage. The calculator shows how long your savings last if disabled, the monthly shortfall with vs without a DI policy, and a timeline of financial impact over the disability duration.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a partner, financial advisor, or HR department.

The Formula

Disability insurance replaces a percentage of your income when you can't work. The key calculation is your income gap:

Income Gap = Essential Monthly Expenses − Disability Income Sources

Disability Income Sources = Employer STD or LTD + SSDI

Recommended Coverage = 60-70% × Monthly Gross Income − Existing Coverage

Estimated Premium ≈ Base Rate × Age Factor × Occupation Factor × Benefit Period Factor × Elimination Factor × Rider Adjustments

Premium factors: age increases cost significantly after 40. Occupation class 1 (manual labor) pays 4-8% of the monthly benefit, while class 4 (office/professional) pays 1-3%. Longer elimination periods (90-180 days) reduce premiums. Riders like COLA and own-occupation add 8-15% each.

The average LTD premium runs 1-3% of annual salary. For a 35-year-old office professional with a $4,000/mo benefit and 90-day elimination period, expect roughly $80-$120/mo.

Example

Marcus — 42-year-old software engineer in Seattle, WA

Marcus earns $130K/yr, has $5,200/mo in essential expenses. His employer provides 60% STD (6 months) but no LTD. SSDI estimate: $2,100/mo. Liquid savings: $45,000.

Coverage Need tab

Monthly gross income$10,833

Employer STD (60%)$6,500/mo

Employer LTDNone

SSDI estimate$2,100/mo

Income gap (after STD ends)$5,200/mo

Recommended LTD benefit$6,500–$7,583/mo

After STD ends at month 6, Marcus has zero income. His $5,200/mo expenses would drain his $45,000 savings in about 8 months. SSDI takes 6-24 months to approve with only ~30% initial approval rate.

Policy Cost Estimator tab

Monthly benefit$6,500/mo

Estimated premium~$145/mo

Premium as % of income1.3%

For $145/mo (1.3% of income), Marcus protects $6,500/mo of income until age 65. Without LTD, his savings last only 14 months — well before SSDI could realistically kick in.

FAQ

What is disability insurance? ▾

Disability insurance replaces a portion of your income (typically 60-70%) if you become unable to work due to illness or injury. There are two types: short-term disability (STD) covers the first 3-6 months, and long-term disability (LTD) kicks in after the elimination period and can pay until age 65. One in four workers will experience a disability before retirement, according to the SSA.

Do I need disability insurance if my employer provides STD? ▾

STD alone is not enough. It only covers 3-6 months, and most disabilities that lead to financial hardship last longer. If your employer provides STD but not LTD, you have a critical gap after month 6. An individual LTD policy bridges this gap. Even if your employer offers LTD, it typically covers only 40-60% of base salary (excluding bonuses), benefits are taxable if employer-paid, and coverage ends when you leave the job. Supplemental individual LTD fills these gaps.

What is an elimination period? ▾

The elimination period (also called the waiting period) is the number of days you must be disabled before benefits begin. Common options are 30, 60, 90, or 180 days. A 90-day elimination period is the most common and offers the best balance of cost and protection. Longer elimination periods mean lower premiums but require more savings to cover the gap. Your employer STD should ideally cover the elimination period for your LTD policy.

What is the difference between own-occupation and any-occupation? ▾

Own-occupation policies pay benefits if you can't perform your specific job, even if you could do other work. A surgeon who loses hand function would qualify even though they could teach. Any-occupation policies only pay if you can't perform any job for which you're reasonably qualified by education and experience. Own-occupation is more expensive but provides much better protection, especially for specialized professionals. Many policies are "own-occ" for the first 2-5 years, then switch to "any-occ."

How does SSDI (Social Security Disability Insurance) work? ▾

SSDI is the federal disability program. It has a strict definition: you must be unable to perform any substantial gainful activity (SGA) and the condition must last at least 12 months or result in death. The average benefit is ~$1,580/mo in 2026. There's a mandatory 5-month waiting period (no benefits paid during this time). Only about 30% of initial applications are approved, and even after appeal the rate is ~50%. The entire process typically takes 6-24 months. Because of these barriers, SSDI should not be your primary disability income plan — it's a safety net, not a replacement for disability insurance.

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