If you could not work, what would you live on?
Group disability coverage usually replaces 60% of pay, often before tax and up to a cap. See what it would really put in your account each month.
- Take-home pay today$0
- Group benefit, after tax$0
- Individual benefit$0
- Income while disabled$0
- Short of take-home pay by$0
- Short of essential expenses by$0
Your income is the asset everything else rests on.
A long disability is statistically more likely than an early death during a working career, and it hits twice: the paycheck stops and the savings plan stops with it. The fix is usually a modest individual policy layered on top of what work provides.
Assumptions and limits. Uses only the figures you enter and a single blended tax rate. Group benefits are treated as taxable when the employer pays the premium and tax-free when you pay it with after-tax dollars; individual policies you own are treated as tax-free. Real policies vary in their definition of disability, benefit period, offsets for Social Security and other income, cost-of-living features, and partial-disability benefits, none of which are modeled. Social Security disability benefits are not included; approval is uncertain and slow. Assumes no income during the waiting period. Not a recommendation to buy or replace any policy. This tool is general education only.