On average short-term disability insurance can cost you somewhere between 1% to 3% of your annual income. If your annual income is $50,000, your monthly premium for your short term disability insurance cost may be around $40 to $130.
You must notice that if you’re without disability insurance, the cost to survive with a disability may get your feet rolling over the sky as the total cost for a disabled person belongs to the range of expenditures such as Medical and Housing expenses, personal care expenses, transportation, and other expenses replacing your lost or stagnated income resources due to your inability to work.
Does Short Term Disability Insurance Cost protect your Income?
Disability is not a disease but a struggle for humans to get fit for daily activities. Although, in many ways, you can insure or protect your income with the right information about the short term disability insurance cost.
Individual circumstance raises the challenges and lifestyle differences that are participating to your short term disability insurance cost. Understanding these participating factors may give you a back to plan your health insurance according to your condition and affordability.
Aproximately 61 million people out of 334,747,000 living in the United States are having some sort of Disability.
1 out of every 4 adult, or 26% of adults in the United State, has a disability; thus, the data clearly suggest the demand for disability insurance are rising heavily due to the rising disability concerns in the people of America.
Cost of Short Term Disability Insurance
To pull you straight to your answer, the cost of short term disability insurance relies mostly on your annual income and several other factors. If your annual income is $50,000, your monthly disability premium might be $40 to $130; if it is beyond $1,00,000, your monthly disability premium might be $100 to $300.
Although, the cost of short term disability insurance isn’t an easy way to judge your budget due to several cost factors directly influencing the total cost. In this article, we shall discuss these cost-affecting factors.
Social Security Administration (SSA) provides short-term disability benefits. However, you must be eligible for disability benefits. You can check them here on how to qualify for the social security disability insurance (SSDI) under the SSA.
There are chances that you might also have to pay even less than the average cost of short-term disability insurance.
Let us have the outlook of your different expenses before we proceed towards different factors that contribute to your total cost of short term disability insurance.
Disabled people require ongoing medical care, which might take your entire savings at stack. Certain assistive devices and prescribed medication occupy the core cost behind your disability.
You often don’t have a housing structure that accommodates your specific disability. This is why you may require house modification according to your need and spatial requirements.
Personal Care Expenses
Some people having disabilities might require personal assistance or a caretaker. They may need external attention for daily activities, such as bathing, eating, and dressing.
Some disability requires external devices that serve their walking, such as wheelchairs, automotive vehicles supported by wheelchairs, or other paratransit services.
Factors Influencing the Average Cost of Disability Insurance
We need to understand several factors for the short term disability insurance cost. Below are certain factors that lead to the total cost of your disability insurance.
- Insurance Company
- This plays a role since different insurance companies release their packages based on their own policies.
- Many companies have their insurance pricing structure which varies with their inclusion and exclusion of various parameters that other companies might have or might not have.
- Following are some Companies that provide lower premium rates for short term disability insurance.
- The older you get, the higher the chances you become ill or prone to disability. The insurer considers this and provides the insurance at higher premiums with respect to your rising age.
- Shorter age is beneficial, and you get a lower monthly premium for your insurance in the early years of your age as you start, and with growing age, the cost of buying new insurance increases.
- Following are the Age parameters for the short terms disability insurance. Although, the rate varies accordingly.
- Age 18 to 35 – Lower Insurance Premium Rate
- Age 36 to 45 – Middle Insurance Premium Rate
- Age 46 to 55 – Higher Insurance Premium Rate
- Beyond 55 – Expensive Standards Premium Rate
- Coverage Amount
- It is as crucial as the company policy, and the more the window of your coverage amount, the wider the insurance payment gets.
- If you choose the insurance package with a higher amount, the total cost of your insurance increases accordingly.
- The coverage or benefit amount is based on different slots for your short-term disability insurance.
- 50% of Monthly Income
- 60% of Monthly Income
- 70% of Monthly Income
- Benefits Duration
- Usually, the benefit amount duration for short-term disability insurance is around 3 to 6 months. However, you can extend this period based on your medical conditions.
- Many companies give an extension with their disability insurance card. Your extension period may cause an increase in your monthly insurance premium as well.
- The benefit duration is based on different slots as follows for your short-term disability insurance.
- 3 Months
- 6 Months
- 12 Months
- Elimination Period
- Your benefits will be given after some waiting period once you’re injured or clinically proven disabled, that is, your elimination period before you’re given the benefit amount defined by the policy.
- Get the privilege to choose how quickly you want to get the benefit amount from your insurance, as shorter time is, as high the premium goes for that particular insurance.
- The Elimination Period is based on different slots as follows for your short-term disability insurance.
- 7 Days Elimination Period
- 14 Days Elimination Period
- 30 Days Elimination Period
- 60 Days Elimination Period
- Health Condition
- Your status of health matters and pre-existing medical issues also get counted (if you have any) as comorbidity. People having another history of health issues may get insurance at higher premium rates compared to normal people.
- Your insurer does have higher risk factors of insuring you with financial assistance, considering your poor health status, as you’ll be more likely to claim them in the future.
- The Health Condition is based on different slots as follows for your short-term disability insurance.
- Coverage Including Pre-existing Medical Conditions
- Coverage Excluding Pre-existing Medical Conditions
- Coverage for Tabacoo Smokers and Non-Smokers
- Employment Profile
- The nature of your job or occupation would definitely influence how much does short term disability costs. The more risky your job profile is the higher your chances of getting injured and claiming your insurance.
- Certain jobs or work may have the potential risk factors of injury and illness. Therefore, your short term disability cost can also increase for occupations with higher risk factors.
- The employment or work profile is based on different slots as follows for your short-term disability insurance.
- High-Risk Work or Job
- Medium Risk Work or Job
- Low-Risk Work or Job
Short Term Disability Insurance Cost Calculator
We have already discussed the above seven characteristics of an insurance policy or factors influencing the Average Cost of Disability Insurance; using these parameters, we can now gauge an estimation of monthly premiums through this short term disability insurance cost calculator.
You can now estimate using this online for the short-term disability insurance cost calculator. You shall either choose a minimum of three parameters from the given blocks and applicants’ inputs to count your monthly insurance premium.
Benefit Monthly Amount – $2000 to $6500
Required Benefit Duration – 3 / 6/ 12 months
Elimination Period – 7 / 14/ 30 / 60 days
Existing Monthly Salary
Applicant’s Work Profile Risk – High / Medium / Low
Tabbocoo Consumption – Smoker or Non-Smoker
Existing Medical Condition – Healthy or Unhealthy
In this article, we’ve briefly covered the short term disability insurance cost with probable aspects and factors influencing the average cost of disability insurance along with other factors associated with the short term disability insurance cost calculator to get your quick estimate about the monthly premium for your insurance.
Is short-term disability insurance worth it?
Of course, it is worth it. Remember, you may not be able to afford the expensive disability treatments and life supplements cost for disabled people without insurance covering the disability.
How much is a disability insurance policy?
It depends on several parameters and factors such as your age, existing health condition, and your monthly income or salary; usually, disability insurance costs 50% to 70% of your monthly income.
How is short-term disability payment calculated?
It validates your requirement inputs against the different parameters such as age, existing Income, health status, elimination period, benefit amount, and duration.
How do I know how much disability insurance I need?
Based on your income status and certain pre-existing health conditions, the insurance company provides the value or amount that might remove your existing financial burden from being a disabled person.