Disability Insurance Calculator
Disability Insurance
Disability Insurance
Your current shortfall is $250 per month. |
Definitions
Current monthly expenses
Your total monthly living expenses. Remember to include your home or rent payments, food, clothing, gas, phone and other monthly expenses.
Disability monthly expenses
Your monthly expenses while you are disabled. This amount is usually a little less than your original monthly expenses. The default value for this field is calculated as 70% of your current monthly expenses. You should keep in mind, however, that many expenses such as your mortgage, rent, utilities and food will most likely remain the same as before you were disabled.
Months of disability
The number of months you expect a disability will prevent you from working. A common mistake is to underestimate the time it takes to get back to work.
Current monthly coverage
Your current monthly disability coverage. Make sure to include any disability coverage supplied by your employer.
Months of coverage
Number of months that your current monthly coverage will last.
Annual inflation
This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2022 the CPI has a long-term average of 3.0% annually. Over the last 40 years the highest CPI recorded was 13.5% in 1980. For the 12 months ending October 31st 2022 the CPI for All Urban Consumers (CPI-U) was 7.7% as reported by the U.S. Bureau of Labor Statistics. If you are disabled for a short period of time, inflation is usually not a very important factor. However, you may need to consider the effect of inflation if you remain disabled for more than a few years.