Long Term Disability Insurance Cost Calculator


Long-term disability insurance is an essential safeguard for individuals who want to protect their financial security in case they are unable to work due to a disability. It provides a source of income when you cannot work for an extended period due to illness or injury. To help you estimate the cost of long-term disability insurance, we have created a Long Term Disability Insurance Cost Calculator.


The cost of long-term disability insurance can be estimated using the following formula:

Cost per Year = (Monthly Income * 12) * (Premium Rate / 100) * (65 – Age)

  • Age: Your current age.
  • Monthly Income: Your monthly income.
  • Desired Coverage Amount: The amount of coverage you desire.
  • Premium Rate: The percentage of your income that you will pay as a premium.

How to Use

  1. Enter your age in years.
  2. Input your monthly income in dollars.
  3. Specify the desired coverage amount in dollars.
  4. Provide the premium rate as a percentage.
  5. Click the “Calculate” button to estimate your annual long-term disability insurance cost.


Let’s say you are 35 years old, earn $5,000 per month, want coverage worth $500,000, and the premium rate is 2%. Your estimated annual long-term disability insurance cost would be:

Cost per Year = ($5,000 * 12) * (2%) * (65 – 35) = $7,200


  1. What is long-term disability insurance? Long-term disability insurance is a type of insurance that provides financial support if you become disabled and are unable to work for an extended period.
  2. Why do I need long-term disability insurance? It helps you maintain your financial stability by replacing a portion of your income when you cannot work due to disability.
  3. How is the premium rate determined? Premium rates are typically based on factors such as age, occupation, health, and coverage amount.
  4. Is long-term disability insurance expensive? The cost varies depending on several factors, but it is generally affordable for most individuals.
  5. Can I adjust my coverage amount? Yes, you can choose the coverage amount that best suits your needs and budget.
  6. What happens if I don’t have long-term disability insurance? Without insurance, you may face financial hardships if you become disabled and cannot work.
  7. Can I change my premium rate later? Some policies may allow you to adjust your premium rate, but it’s important to check with your insurance provider.
  8. Is long-term disability insurance tax-deductible? Premiums are usually not tax-deductible, but benefits received are typically tax-free.
  9. Are there waiting periods for benefits? Most policies have a waiting period before benefits start, which can vary from a few weeks to several months.
  10. Is long-term disability insurance worth it? It provides valuable financial protection, especially if you have dependents or limited savings.


Long-term disability insurance is a crucial part of your financial planning, and estimating its cost can help you make informed decisions. Use our Long Term Disability Insurance Cost Calculator to get an idea of how much you might need to budget for this important coverage. Remember that insurance costs can vary, so it’s advisable to consult with an insurance professional for personalized advice.

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