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A Quick Word from Terry, Mike and Dug:

During this time of uncertainty and sheltering-in-place, we will continue to have at least one person in-office daily until at least 1:00 PM PDT to meet the needs of you, our clients.  Alternate servicing procedures are also in place so direct face to face contact can be minimized.  If you must leave a voice message or contact us by email, know we will get back with you as quickly as possible.We are here to serve your needs despite this situation. From everyone at Laguna Financial Services 

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Disability Income Insurance

How Much Do You Need?

If you were to become disabled due to an illness or injury, how would your cash flow be affected? Would you have enough income to meet monthly expenses? This calculator can help you estimate your need for income protection in the event you become disabled.


Based on the information you provided, the amount of income shortfall you might experience during a long-term disability is shown below.

Skip Table Information
Your Results
Description Amount
Your current monthly expenses: $0
Additional monthly expenses if you were disabled: $0
Your estimated total monthly expenses: $0
Your estimated monthly income during an extended disability: $0
Monthly funds available from other/retirement assets: $0
Your estimated additional monthly income needed: $0
The percentage of estimated total monthly expenses that you would need to replace in the event of a long-term disability: 0%

Long-term disability (LTD) benefits are taxable when the employer pays the premiums, reducing an already limited benefit. In addition, employer provided LTD, even if employee paid, may not be portable. Disability income insurance coverage is generally limited to 60 percent to 70 percent of salary and typically has a monthly cap. Income may not be fully covered due to the cap. Bonuses are not counted as covered income by most LTD policies.

Income may be available from the following sources, but only for a limited time:

  • Accumulated sick-pay benefits.
  • Salary continuation benefits.
  • Short-term disability benefits (typically one year or less, limited amount).

This chart shows the percentage of your monthly expenses that you may need to replace in the event of a long-term disability. A disability income insurance policy is one tool you may want to consider to help you address this potential shortfall. Social Security pays disability benefits, but you must be considered totally disabled, and it can be difficult to qualify for benefits.

Total Monthly Expenses