Disability Calculator

Let's take a look at your current income

Your annual salary		$

Additional annual compensation (e.g.,bonus or commission)¹		$

Total gross annual income		$

Estimated after-tax monthly income²		$

Benefits from existing disability insurance policies

Do you have Group Long Term Disability (LTD) through your employer?

Yes

Monthly after-tax benefit from Group LTD coverage

Assumes that your Group LTD coverage is employer-paid, that benefits are taxable at 28%, and benefits are 60% of base salary

What about Social Security and Workmen's Compensation?

Monthly benefit from any individual disability policy you now have³

Estimated total monthly benefits from group and individual coverage, after-tax

Additional Compensation

We ask for this separately because, although it's part of your overall compensation — and income you may need to protect — it's generally not covered by a Group Long Term Disability (LTD) plan.

What about Social Security and Worker's Compensation?

Social Security disability benefits are not available if you are expected to be out of work for less than a year.* If you do qualify for Social Security disability benefits, your group LTD benefits will likely be reduced by the amount of your Social Security disability benefits.

Also, most causes of disability are not work-related** and non-work related disabilities are not covered by workers' compensation.

* Social Security Administration website, Social Security Adult Disability Starter Kit Fact Sheet, November, 2012. http://www.socialsecurity.gov/disability/Documents/Factsheet-AD.pdf
** Council for Disability Awareness, Long-Term Disability Claims Review, 2011 http://www.disabilitycanhappen.org/research/CDA_LTD_Claims_Survey_2011.asp

Group LTD Benefit

The amounts shown assume that additional compensation such as bonuses and commissions are not covered under the Group LTD plan.

Keep in mind that your Group LTD coverage could end if you leave your job. Also, most Group LTD plans have a monthly maximum benefit; for higher wage earners, the monthly maximum benefit cap may cause you to be covered for a lower percentage of your base salary. Be sure to understand your coverage and, if needed, speak to a financial professional.

Estimating your Group Long-Term Disability benefit

If your employer pays for your group disability coverage, your benefits are
generally taxable. If you pay for the coverage with after-tax dollars, the benefits
are generally tax-free.

What percentage of your salary does your Group LTD coverage pay (usually 50% or 60%)?

Does your employer pay for your Group LTD coverage?

Yes

Estimated after-tax monthly Group LTD benefit¹

Percentage of estimated after-tax monthly
income covered by Group LTD, assuming a 28%
tax rate²

¹ Your Group LTD coverage could end if you leave your job. Most Group LTD plans have a monthly maximum benefit. For higher wage earners, the monthly maximum benefit cap may cause you to be significantly underinsured. Contact your Human Resources department for more information regarding the specifics of your Group LTD plan. The amounts shown assume that additional compensation such as bonuses and commissions are not covered under the Group LTD plan.

² Your actual tax rate could be higher or lower.

¹ Group Long Term Disability plans generally do not cover additional compensation such as bonuses or commissions. The amount shown as "Monthly after-tax benefit from Group LTD coverage" assumes Additional Annual Compensation is not covered under the Group LTD plan. Review your Group LTD plan provisions to determine the types of earnings covered.

² We assume your tax rate is 28%. Your actual tax rate may be higher or lower.

³ This calculator assumes that you are paying for any individual disability income insurance with after-tax dollars and that the benefits would not be taxable.