Determine how much disability insurance you need based on your income, desired replacement percentage, and existing employer coverage.
Monthly Benefit Needed
$3,750
After employer coverage
Annual Benefit Needed
$45,000
Gap after employer coverage
Total Replacement Need
$45,000
At 60% of income
Coverage Gap
60%
Remaining percentage to cover
The 60% Rule
Most disability policies cap benefits at 60% of your gross income. This is intentional to maintain your incentive to return to work. Plan your coverage around this threshold.
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How to read these numbers
The monthly benefit needed is what you would receive from a private disability policy after accounting for any employer-provided coverage. If your employer already covers a portion, you only need to insure the gap. The total replacement need shows your full coverage goal before employer benefits.
Results are estimates only and should not be considered professional insurance advice. Always consult a licensed insurance advisor before making coverage decisions.