Disability Insurance Needs Calculator
Most working adults are underinsured for disability — 1 in 4 will be disabled before retirement. This calculates the gap between current coverage and need.
| Net Monthly Income | — |
| Essential Expenses | — |
| Employer LTD Benefit | — |
| SSDI (if approved, 5-mo wait) | — |
| Total Disability Income | — |
| Coverage Gap to Expenses | — |
| Suggested Supplemental Policy Benefit/mo | — |
Disability insurance replaces lost income if illness or injury prevents you from working. The Social Security Administration estimates that 1 in 4 of today's 20-year-olds will become disabled for 90+ days before retirement. Most US adults are underinsured — typical employer coverage caps at 60% of salary and excludes bonuses/commission. Source: SSA Disability Statistics.
Why Employer LTD Often Falls Short
Group long-term disability (LTD) typically covers 60% of base salary up to a monthly cap (often $5,000-10,000). Three gaps: (1) the 40% income drop on its own can sink budgets; (2) high earners hit the cap and lose disproportionate coverage; (3) bonuses, commissions, and equity income are usually excluded. Also: LTD benefits are taxable if your employer pays the premium (most do), reducing the net by 20-30%.
SSDI Reality vs Expectation
Social Security Disability Insurance approval is harder than most assume. Initial application denial rate: 65%. Average wait for first decision: 7-8 months in 2026. Average benefit: $1,800/month. Many disabilities (e.g., chronic pain, mental health) require multiple appeals over 18-24 months. Plan as if SSDI will NOT be approved in year one — the 5-month waiting period plus processing time means a year of zero SSDI is common.
Own-Occupation vs Any-Occupation Definition
The most important clause in any disability policy: own-occupation means you receive benefits if you cannot perform your specific job (a surgeon who loses fine motor control gets paid even if they could work as a consultant). Any-occupation pays only if you cannot perform ANY job suitable to your training and education — much harder to qualify for. Pay 20-40% more for own-occupation coverage; it is worth it for skilled professionals (doctors, lawyers, engineers, sales reps).
Last updated May 2026. Sources: SSA — Disability Statistics, Insurance Information Institute.