Disability Insurance Calculator

How much disability insurance do you need?

We'll look at the following to determine how much you need.

  • Estimated monthly income after taxes
  • Available income if you became disabled
  • Monthly expenses
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Step 1: What is your estimated after-tax monthly income?

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Step 1: Results

Monthly income after taxes

$0

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Step 2a: What household income would be available if you became disabled?

If you have disability insurance through your employer, select the appropriate percentage.

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Step 2b: What household income would be available if you became disabled?

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Step 2: Results

Income available if you became disabled

$0

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Step 3: What are your monthly expenses?

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Step 3: Results

Monthly expenses

$0

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Summary

Expenses: $0

Disability income gap
$0

Disability income sources
$0

Disability Income Gap: The difference between the total disability income sources and the estimated monthly expenses. This amount represents the gap in financial protection that exists for a disability.

This is a hypothetical example. Remember, disability income insurance does not cover 100 percent of your income. Your financial representative can illustrate the amount you're eligible for, based on current underwriting guidelines.

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Results

Total disability income sources

$0

Total monthly expenses

$0

Monthly disability income gap

$0

Disability income insurance from Principal Life Insurance Company can help protect you and your family's financial security. And - depending on your age, income and other factors - it can be one of the most affordable components of your financial protection strategy.

Whether your goal is maximum income protection, safeguarding specific expenses (mortgage, tuition, retirement), or budget-based coverage - Principal Life can help. To find out more, contact your Principal Life financial representative.

Disability insurance has limitations and exclusions. For costs and complete details of coverage, contact your Principal Life representative. Insurance issued by Principal Life Insurance Company. Principal Life is a member of the Principal Financial Group®, Des Moines, IA 50392. This information is believed to be accurate and authoritative in regard to the subject matter covered. The accuracy of the information is not guaranteed and is provided with the understanding that Principal Life is not rendering legal, accounting or tax advice. In specific cases clients should consult their legal, accounting or tax advisors.

 

Gross annual income

Enter your gross annual income. The calculator will calculate your estimated after-tax monthly income. Spouse income is entered later.

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Estimated tax bracket

25% represents an average household tax bracket including Federal, State and FICA taxes. Consult your tax advisor for complete details.

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Group disability benefit

Because group disability insurance benefits are usually taxable, your benefit amount is stated in after-tax dollars. After taxes, even a typical policy that covers 60% of your income may be reduced to only 45%. Will that be enough?

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Maximum monthly benefit

The maximum amount the insured is eligible to receive based on policy guidelines. The most common formula is 60%, not to exceed $5,000 month.

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Waiting period

This is the number of days you must wait before benefits begin. Benefits will be paid once a month after the waiting period (also may be called the Elimination Period) is satisfied. The most common elimination period for group disability insurance plans is 180 days.

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Benefit period

This is the length of time you will receive benefits after satisfying the waiting period (also may be called the Elimination Period). The most common benefit period for group disability insurance plans is 5 years.

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Individual waiting period

This is the number of days you must wait before benefits begin. Benefits will be paid once a month after the waiting period (also may be called the Elimination Period) is satisfied. The most common individual disability income insurance waiting period is 90 days.

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Individual benefit period

Proceeds from individual disability income policies are typically not taxable if premiums are paid by you. Consult your tax advisor for details.

This is the length of time you will receive benefits after satisfying the waiting period (also may be called the Elimination Period). The most common benefit period for individual disability insurance plans is To Age 65.

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Monthly Social Security disability benefit

In most cases, this answer will be zero. For an exact figure, visit the Social Security website.

Do not enter an amount here if you have already entered an amount for group disability insurance. If you have Group Long-Term Disability (LTD) coverage, benefits will be integrated with any Social Security disability benefits you might receive.

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Additional household income

Add the after tax monthly value of other sources of income such as spouse income, rental income, etc.

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Mortgage / rent

Even if your mortgage is paid off, be sure to consider the monthly cost of property taxes, association dues and other fees if applicable.

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Utilities and household expenses

Please enter an estimate. Examples include: electricity, gas, water, phone, cable, internet and waste management.

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Food / household supplies

Please enter an estimate. Be sure to include dining out.

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Auto payments and expenses

Please enter an estimate. Include fuel and maintenance costs.

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Loans, credit cards and charge accounts

Total the amount you typically pay each month on your loans and credit cards.

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Insurance premiums

Total your current monthly premiums for medical, dental, life, auto, homeowner's and other types of insurance.

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Childcare

Add the monthly cost for childcare, school lunches and special interests or events.

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Saving and investing

Are you setting aside money for retirement, college expenses or an emergency fund?

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Other monthly expenses

Add the monthly cost for 'other' expenses, such as entertainment, clothes, etc.

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