The average short-term disability insurance premium cost is about $86 per month for someone earning $41,600 a year.
however, your rates could be much higher or lower depending on the features of the policy you select (monthly amount, elimination period, benefit length) and your risk factors (age, occupation, and tobacco use) .
First, learn how each of these elements influences your monthly premiums. then use our online cost calculator to get an instant estimate. keep playing until you find a setup that fits your budget.
Finally, request a quote from an authorized agent to get an accurate figure and complete an application to start your safety net.
calculating short-term disability premium rates
At least seven different factors go into the equation that calculates short-term disability insurance premium rates. the choices you make about the specific features of the policy and information about you, the applicant, affect the monthly cost.
Request a short-term disability quote to get an accurate estimate of the monthly premiums you could pay for a sample policy configuration, given your qualifications as an applicant.
characteristics of the policy
Four policy features chosen by the applicant determine the short-term disability premium rates. your monthly costs may go up or down depending on the options you choose.
point of purchase
Believe it or not, where you buy short-term disability coverage affects premium rates. Your monthly costs may go up or down depending on whether you sign up at work or through private channels.
- short-term individual disability not through employers tends to cost more because the insurer cannot pool risks and faces higher claims losses
- Group plans through employers generally cost less because the issuer companies see security in large numbers and can pre-impose premiums
The monthly amount is the first policy feature that affects short-term disability premium rates. the higher the monthly benefit, the higher the monthly cost.
Applicants can choose between the lower of two figures.
- percentage of monthly income (70% maximum)
- maximum benefit ($6,500 per month limit)
Our short-term disability payment calculator uses these two pieces of information for illustration.
The elimination period is the second policy feature that influences short-term disability premium rates. the longer the elimination period, the lower the monthly costs.
The elimination period defines how quickly claims payments begin. applicants have many different options.
- 3 months
- 6 months
- 12 months
- 24 months
- usps postal workers often pay more because repetitive tasks lead to chronic joint and ligament injuries
- Federal government employees often pay less because the preponderance of job roles are clerical or administrative
- self-employed independent contractors may pay more or less due to the wide variety of job roles they may perform
The benefit period is the third policy feature option that affects short-term disability premium rates. the longer the benefit period, the higher your monthly costs.
The benefit period defines the maximum duration of claims payments. applicants have many different options.
Various characteristics of the insured person also enter into the equation that determines short-term disability premium rates. monthly costs may increase or decrease depending on the risks related to the applicant.
Your occupation is the first applicant characteristic that affects short-term disability premium rates. your monthly cost could increase by 40% if you have a high-risk job.
On the policy effective date, your age is the second applicant characteristic that affects short-term disability premium rates. Your monthly cost increases the longer you wait to start coverage because seniors file more claims as their health deteriorates.
You may be denied short-term disability due to a pre-existing condition. so start while you’re young and healthy, and pay half the premiums of someone who starts coverage at age 60.
Your tobacco use is the third applicant characteristic that influences short-term disability premium rates. your monthly cost could be 20% higher if you smoke cigarettes, pipes or cigars or if you put a pinch between your cheek and gums.
short-term disability insurance cost calculator
Use our short-term disability insurance cost calculator to estimate the premium rate for individual (not group) coverage. enter the three characteristics of the policy and the two characteristics of the applicant in the online form to obtain a preliminary result.
Request a short-term disability quote once the calculator provides you with a base estimate for your ideal configuration. an agent licensed in your state may contact you.