Disability Insurance Calculator
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Disability Insurance
One of the most common causes of income loss is through a disability. While most disabilities cause only temporary loss of income, any income loss can be devastating if you are not financially prepared. This calculator helps you determine how much disability insurance you may need to cover expenses during such a disability.
By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.
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Disability Insurance Calculator › Gulf Coast Bank
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Current monthly expenses
Your total monthly living expenses. Remember to include your home or rent payments, food, clothing, gas, phone and other monthly expenses.
$0
$500
$2.5k
$5k
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.
$0
$500
$2.5k
$5k
Current monthly coverage
Your current monthly disability coverage. Make sure to include any disability coverage supplied by your employer.
$0
$500
$2.5k
$5k
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.
1
41
80
120
Months of coverage
Number of months that your current monthly coverage will last.
0
80
160
240
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 2024 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 2024 the CPI for All Urban Consumers (CPI-U) was 3.2% 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.
0%
4%
8%
12%
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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 2024 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 2024 the CPI for All Urban Consumers (CPI-U) was 3.2% 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.
Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.