How Much Will Your Disability Insurance Pay?

by | Apr 26, 2022 | Other Cool Stuff

How much will your disability insurance pay?

How much will your disability insurance pay?

Knowing how much your disability insurance will pay is key to deciding if you have enough coverage.

Many disability insurers will cover a max of 60% of your income. This is the total amount between your policy at work (group coverage), and any policy you may have on your own (individual coverage).

A typical situation

Most ER docs have group disability coverage through work. A common group policy covers 60% of gross income up to $15K/month. This means the maximum benefit is $15K/month, or $180K/year.

Payout depends on gross income

How much your disability insurance will pay depends on your gross income before you became disabled.

In our typical situation, you would need $300K/year gross income to collect the max $180K/year under the policy. $300K x 60% = $180K.

If you gross less than $300K/year, you collect less than $180K/year under the policy.

If you gross more than $300K/year, the max under this group policy is still $180K/year.

Adding more coverage

If you gross more than $300K/year and you feel $180K/year would be insufficient, you can apply for an individual policy to get more coverage. See the table below.

Maximum Disability Insurance Coverage by Gross Income

Gross Income

Max Total Benefit (60% Gross)Group Benefit (60% to $180K)

Max Individual Benefit

$200K

$120K$120K

$0

$300K

$180K$180K

$0

$400K$240K$180K

$60K

$500K$300K$180K

$120K

If you need help determining if your disability coverage is sufficient, schedule a FREE Financial Pulse Assessment™. This is a free 3 step process to get clarity on your finances and “test drive” our services.

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