Disability Income Coverage Calculator

What the Disability Income Coverage Calculator does

Disability insurance replaces part of your income if illness or injury stops you working, commonly around 60% of gross pay. Benefits from employer-paid policies are usually taxable; benefits from policies you pay for with after-tax money usually are not. Comparing the net benefit with essential expenses shows the gap.

Formula

• Net benefit = existing benefit × (1 − tax if taxable) + individual benefit
• Gap = essential expenses − net benefit

Worked example

Using the starting values in the calculator above:

How to read the result

Check the definition of disability: “own occupation” policies pay if you cannot do your own job, not just any job.

Insurers limit total cover to a share of income, commonly about 60% to 70% across all policies.

Estimates for planning only. Actual premiums and benefits depend on the insurer, policy terms and underwriting.

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