You are statistically more likely to experience a disability lasting 90 days or more before age 65 than to die before 65. Yet most workers have no long-term income protection beyond their employer's basic group plan -- if they have that at all. Disability insurance replaces a portion of your income if illness or injury prevents you from working. Our calculator estimates what that coverage costs based on your specific situation.
Social Security Disability Insurance (SSDI) exists but is notoriously difficult to qualify for -- approval rates hover around 30%, and the average monthly benefit is under $1,500. Employer short-term disability covers weeks, not years. The gap between those two and "full income protection" is where individual disability insurance lives.
Your monthly benefit is fixed at 60% of your pre-disability income -- the industry standard replacement ratio. The calculator shows this dollar amount explicitly. Before looking at the premium, ask yourself: could your household survive on that amount? If your mortgage, car payment, and essential bills total more than 60% of your income, you may need to supplement with other savings or adjust your budget expectations.
Your occupation class reflects actual disability claim frequency and severity by job type. Here is how the multipliers compare across classes:
| Occupation Class | Example Jobs | Multiplier |
|---|---|---|
| Class 1 - Professional | Doctor, Lawyer, Accountant | 0.85x |
| Class 2 - Office / Clerical | Admin, HR, Finance | 1.00x |
| Class 3 - Sales / Light Manual | Retail, Sales Rep | 1.20x |
| Class 4 - Skilled Manual | Electrician, Plumber | 1.50x |
| Class 5 - Heavy Manual | Construction, Logging | 1.90x |
The elimination period is the most important variable you control in your disability policy structure. A 90-day elimination period costs significantly less than a 30-day elimination period. The decision framework is straightforward: do you have 90 days of living expenses in liquid savings? If yes, the longer elimination period is almost always the better financial choice. If no, the shorter period may be worth the higher premium.
A 2-year benefit period sounds like meaningful protection -- and it is, for a broken arm. For a serious illness or a back injury that prevents you from returning to your occupation for five years, a 2-year benefit period leaves you without income for the remaining three. The premium difference between a 2-year benefit period and "to age 65" is real, but so is the coverage gap. For anyone under 50, "to age 65" coverage is the more defensible choice.
An estimate only tells you the price. Before comparing two disability quotes on premium alone, get clear answers to these questions, since they change what the policy actually pays out when you need it:
None of these show up in the headline premium, but each one can be the difference between a policy that pays what you expect and one that pays less, or later, than you assumed when you bought it.
Employer short-term disability typically covers 13 to 26 weeks. After that window, you either recover and return to work, qualify for employer long-term disability (if offered), or have nothing. Long-term disability is the coverage that matters for career-disrupting events -- and many employers either do not offer it or offer it at levels that do not reflect your actual salary.
Our calculator adds a 15% surcharge for self-employed workers. Insurers charge more for this group because there is no employer-provided sick leave or short-term disability as a buffer. Freelancers, contractors, and small business owners who rely entirely on their own income have the highest exposure to a disability event and often the least protection.
The elimination period is measured in time, not dollars. It is the number of days you must be disabled before benefits begin -- not an amount you pay out of pocket. During the elimination period, your income simply stops. There is no dollar threshold to cross; the only requirement is that the disability has lasted the specified number of days and that a physician has documented it.
Note: "Own occupation" disability definitions pay benefits if you cannot perform your specific job, even if you could work in another field. "Any occupation" definitions only pay if you cannot work at all. Own-occupation policies cost more but provide much stronger protection for professionals with specialized skills.
Here is a realistic disability insurance estimate for a 35-year-old office professional earning $75,000 per year, requesting a 90-day elimination period and a benefit period to age 65:
| Line Item | Value | What It Means |
|---|---|---|
| Gross annual income | $75,000 | The base your benefit percentage is calculated from |
| Benefit percentage | 60% | Most individual policies cap at 60-70% of income |
| Monthly benefit | $3,750 | 60% of $75,000, divided by 12 |
| Elimination period | 90 days | How long you wait, unpaid, before benefits start |
| Benefit period | To age 65 | The most comprehensive option; costs more than a 5-year benefit period |
| Occupation class | Class 5 (office) | Physical occupations would push this estimate meaningfully higher |
| Estimated monthly premium | $115-$145 | Roughly 1.5-2% of covered annual income for this profile |
Two things jump out in an estimate like this. First, the elimination period is doing a lot of the pricing work -- moving from 90 days to 30 days on the same benefit can raise the premium by 20-30% because the insurer is now on the hook for short-term disabilities too, which are far more common than long-term ones. Second, the monthly benefit is not your full salary; it is 60% of it, which is why it is worth checking whether that amount actually covers your fixed monthly expenses before assuming the policy has you fully protected. Run your own numbers, occupation class, and elimination period through the Disability Insurance Calculator to see how each variable moves your specific estimate.
Note: If your employer offers group long-term disability as a benefit, check whether it's enough on its own before assuming you're covered. Group policies typically replace only base salary, end the moment you leave the job, and pay benefits that are taxable income -- three limitations an individual policy can fill in.
The elimination period is the waiting period between when you become disabled and when benefits begin. Common options are 30, 60, or 90 days. During this window, you are responsible for your own living expenses. A longer elimination period lowers your premium -- but requires more emergency savings to bridge the gap.
The benefit period is how long the insurer will pay benefits once your elimination period ends. Options typically range from 2 years to "to age 65." A 2-year benefit period costs less but leaves you without coverage for a long-term disability. "To age 65" provides career-long protection.
Most individual disability policies replace 60% of your pre-disability income -- the industry standard and what our calculator uses. Insurers cap replacement at 60% because maintaining some financial incentive to return to work is considered important for recovery outcomes.
Employer short-term disability typically pays 60% of salary for 13 to 26 weeks. After that, long-term disability (LTD) takes over -- but only if your employer offers it. Many employers do not. Even when they do, group LTD policies are often less comprehensive than individual policies and terminate when you leave the job.
Disability insurers classify occupations by risk of disability claim. Class 1 (professionals like doctors and lawyers) have lower claim rates and pay less. Class 5 (heavy manual labor like construction) has significantly higher claim rates and disability severity. Our calculator applies multipliers of 0.85 to 1.9 across occupation classes.