Summary: Individual long-term disability insurance typically costs 1 to 3 percent of your annual income and replaces 50 to 70 percent of it if you cannot work. For a $75,000 earner, that is roughly $53 to $159 a month for a $3,750 monthly benefit. This calculator estimates your benefit and premium range from your income, occupation, and waiting period, and compares the benefit against the $1,580 average Social Security disability payment.
Planning estimates (1-3% of income). Actual quotes depend on age, health, and occupation. For planning only.
Your ability to earn is your largest financial asset: a 35-year-old earning $75,000 will earn over $2 million before retirement, yet most people insure their $300,000 house and not their $2 million income. About 1 in 4 of today's 20-year-olds will become disabled before reaching retirement age, per the Social Security Administration, and the average long-term disability claim lasts almost three years.
Social Security Disability Insurance is not a plan. About 30 percent of initial SSDI claims are approved, the average payment was about $1,580 a month in 2025, and the definition of disability is strict: unable to do any substantial work. Private coverage pays 50 to 70 percent of your own income under your own occupation's definition, which is a different universe of protection.
The premium math is what surprises people favorably. At 1 to 3 percent of income, a $75,000 earner pays $53 to $159 a month for $3,750 a month of protection. That is cheaper than most people's car insurance for coverage on an asset worth ten times the car. The guides below cover how much you need, the policy definitions that decide claims, and how private coverage interacts with SSDI.
Typically 1% to 3% of annual income: about $53 to $159 a month for a $75,000 earner in an office occupation. Physical occupations, older ages, and shorter waiting periods raise it.
Enough to cover essential expenses if your income stopped: usually 50% to 70% of gross income. Most insurers cap benefits around $10,000 to $15,000 a month for individual policies.
The waiting period before benefits begin, typically 90 days for long-term policies. Longer elimination periods (180 days) lower premiums; shorter ones (30 days) raise them substantially.
Most individual policies exclude or limit pre-existing conditions for the first 12 to 24 months. Group employer plans often have no pre-existing exclusions.
Figures: industry premium ranges; SSDI statistics per Social Security Administration (2025). Verify quotes with insurers. This page is for planning only.