Disability Insurance Calculator
Estimate your monthly benefit and premium — and see how much of that benefit you would actually keep after tax.
Disability Insurance Estimator
Every factor used is shown in the results panel. This is a structural estimator, not a quote — see the method note below.
Monthly Benefit
Estimated tax-free / taxable
per month
Structural estimate only. Actual premiums depend on medical history, income documentation, carrier underwriting and the specific policy wording. The definition of disability in the contract matters more than any figure on this panel.
How this estimate is built
The estimator takes your gross income, applies a benefit percentage that varies with occupation class, then multiplies a base premium by disclosed factors for age, definition of disability, elimination period, benefit period and riders. The tax treatment of the benefit depends on who paid the premium, and the panel shows both the headline benefit and the after-tax reality.
It does not pretend to quote a real price: real disability underwriting turns on medical history and income documentation. Use it to see how the choices move the number — particularly the elimination period, which is the most effective cost lever available. Our data methodology page documents what our published data does and does not measure.
Four questions to ask about any disability policy
- What is the definition of disability? Own-occupation, modified own-occupation, or any-occupation — and for how many years does own-occupation apply? Many policies are own-occupation for two years, then switch to any-occupation.
- Who pays the premium, and therefore is the benefit taxable? Employer-paid premiums generally produce taxable benefits; premiums you pay with after-tax dollars generally do not.
- Is the benefit offset by other income? Most policies offset against Social Security disability, workers' compensation and employer sick pay. Ask for the offset list.
- Is there a residual or partial disability benefit? Most disabilities are partial, not total. Without a residual benefit, returning to work at reduced income can mean losing the whole benefit.
Frequently Asked Questions
What is the difference between own-occupation and any-occupation disability coverage?
Own-occupation pays a benefit if you cannot perform the duties of your own occupation, even if you could work in another field. Any-occupation pays only if you cannot work in any occupation for which you are reasonably suited by education, training or experience. The gap between them is the whole product: a surgeon with an own-occupation policy who loses fine motor control is disabled; with an any-occupation policy they may be told they can still teach, and denied. Own-occupation costs more and is the definition worth paying for.
Are disability insurance benefits taxable?
It depends on who paid the premium. If your employer pays the premium and does not include it in your taxable income, the benefits are taxable to you. If you pay the premium yourself with after-tax dollars, the benefits are generally received free of federal income tax. This matters enormously in practice: a benefit stated at 60% of income can be worth far less than 60% after tax. Check which applies to you before you size your coverage.
How much of my income will a disability policy replace?
Insurers cap the benefit at a percentage of income — commonly 50% to 70% of gross, subject to a monthly maximum — because a benefit that replaced all of your income would remove the incentive to return to work. The practical planning point is that you need to compare the after-tax benefit to your actual living costs, not to your gross salary.
What is an elimination period?
The waiting period before benefits begin, measured from the start of the disability. Common choices are 30, 60, 90, 180 or 365 days. A longer elimination period lowers the premium, and it is the single most effective lever on cost. Choose one you can actually fund from savings — if you could not cover 90 days of expenses, a 90-day elimination period is not real coverage.
Does my state require disability coverage?
Five states and Puerto Rico operate mandated short-term disability insurance programmes: California, Hawaii, New Jersey, New York and Rhode Island. These are short-term programmes with modest benefit levels and relatively short durations. A growing number of states also operate paid family and medical leave programmes. None of them replaces the need for long-term disability coverage if your income supports a household.
Can I get disability insurance if I am self-employed?
Yes, and it is usually more necessary, not less — there is no employer-provided coverage to fall back on and no employer contribution to the premium. The underwriting is the same; the main difference is that you will pay the premium personally, which means the benefits are generally tax-free.
What are the riders worth considering?
Four are commonly worth pricing: a residual or partial disability benefit (pays a proportion if you return to work at reduced income), a future increase option (lets you raise coverage as income grows without new medical underwriting), a cost-of-living adjustment, and a waiver of premium while disabled. The residual benefit is usually the one people are most glad to have.
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* Structural estimate only. Actual policy cost depends on individual qualifications, medical underwriting and carrier rules. InsurTool is not an insurer, agent or broker, and this is not tax advice — confirm the tax treatment of any benefit with a qualified tax professional.