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Disability Income Needs Calculator
If illness or injury kept you out of work, how much monthly benefit would your household need to keep the lights on? Compare your essentials against the coverage you already carry.
Your Situation
All figures monthly and after taxes where applicable. Round numbers are fine—this is an estimate.
Monthly Expenses
$
Mortgage/rent, utilities, food, insurance premiums, transportation, child care, minimum debt payments.
Existing Coverage
$
Enter the monthly amount you expect to receive after any taxes and plan limits, not your plan's replacement percentage. Check your plan or ask your benefits administrator; enter 0 if none.
$
Monthly amount you expect to receive from an individual DI policy after any applicable taxes. Leave 0 if none.
Emergency Reserves
$
Cash and easily-accessible savings you'd use to bridge the gap before benefits begin or to cover the shortfall.
Estimated Monthly Gap
$6,000/mo
Estimated monthly gap: $6,000 per monthEstimated additional take-home monthly benefit needed to cover essentials, not a policy recommendation.
How We Got There
- Monthly essential expenses (need)$6,000/mo
- Estimated take-home employer LTD benefit− $0/mo
- Individual disability coverage− $0/mo
Monthly Gap$6,000/mo
This subtracts the take-home LTD and individual benefits you enter from essential expenses. A plan's percentage of gross base salary is not a take-home payment: taxes, benefit caps, offsets and eligibility can change what you actually receive. If your net benefit is unknown, use your plan documents or benefits administrator before relying on this gap.
Savings Runway
Your emergency savings would cover this gap for approximately 3 months.
For estimation purposes only. Results are not insurance quotes or offers of coverage. Final recommendations depend on occupation class, health, definition of disability, elimination period, and benefit period.
About the Method
Why the Gap Often Surprises People
Disability is the leading cause of mortgage foreclosure in the United States, yet most working households carry no individual coverage. The reason is usually a misplaced confidence in employer group long-term disability—a benefit that almost always pays less than people assume.
Group LTD often replaces a percentage of eligible gross base salary rather than take-home pay. Bonuses, commissions, and equity compensation may be excluded. Benefits may be taxable when the employer pays the premium. Plans can also cap or offset monthly benefits. And "any-occupation" definitions kick in after 24 months, ending payments if you can perform any job your education and experience qualify you for, regardless of income.
This calculator compares your essential monthly expenses against the estimated after-tax monthly benefits you enter to show a possible shortfall. It does not calculate taxes or plan benefits for you, and ignores elimination periods and Social Security Disability Insurance (which has a strict definition and long approval process). Verify your benefit amounts and bring the gap number into a conversation about coverage.
Disability income planning focuses on lost earnings while you're unable to work. For a different future expense, you can also project long-term care costs for in-home help or assisted living.
Related calculators
Disability coverage helps while you're unable to work; life insurance addresses your family's needs after a death.
The Next Step
Protect the income you've worked to build.
The right disability policy hinges on your occupation class, definition of disability, and the carrier's appetite for your specialty. Bring your estimate; we'll match it to the best contract on the market.
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