Disability Insurance Needs 2027 Calculator
Most workers underestimate disability risk: 1 in 4 will be disabled for 90+ days during career. Calculate true coverage need accounting for net income, taxes, savings, and employer benefits.
| Annual salary | — |
| Monthly gross | — |
| Monthly net (after tax) | — |
| Employer DI gross benefit | — |
| Employer DI net (after tax) | — |
| Monthly living need | — |
| Coverage gap | — |
| Replacement ratio | — |
| Supplemental DI needed | — |
Disability insurance pays a monthly benefit if you can't work due to injury/illness. Most employer plans cover 60% of gross salary — but if premiums are employer-paid, benefits are TAXABLE, dropping real replacement to ~40-45% net. Most people need supplemental private DI to close the gap to actual living expenses.
Why 60% Employer DI Isn't Enough
60% gross salary sounds like a lot — but if employer pays premiums, benefit is taxable income. After 30% tax, net is 42% of gross. Monthly living costs (mortgage, food, utilities) don't shrink in disability. Most need 70-80% net replacement to maintain standard.
Own-Occupation vs Any-Occupation
Own-occupation: pays if you can't do YOUR specific job (most important for specialists — surgeon who can't operate). Any-occupation: pays only if you can't do ANY job (broader insurance, weaker for high-earners). Always buy own-occupation, especially for the first 5 years.
Elimination Period Trade-off
Elimination period = wait time before benefits start. 30-day: highest premium. 90-day: standard. 180-day or 365-day: cheapest but requires emergency fund. Most balance: 90-day with 6-month emergency fund.
Tax-Free vs Taxable Benefits
If YOU pay the premium (after-tax dollars), benefits are TAX-FREE. If EMPLOYER pays, benefits are TAXABLE. For high-earners, paying premiums yourself or post-tax through employer can dramatically improve net replacement.
Last updated May 2026. Sources: Council for Disability Awareness, SSA Disability Statistics.