The average premium cost for short-term disability insurance is about $86 per month for a person earning $41,600 annually.
However, your rates could be much higher or lower depending on the policy features 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 monthly premiums. Then, use our online cost calculator to get an instant estimate. Keep playing around until you find a configuration that fits your budget.
Finally, request a quote from a licensed agent for a precise figure and complete an application to get your safety net started.
Calculating Short-Term Disability Premium Rates
At least seven distinct factors go into the equation that calculates short-term disability insurance premium rates. The choices you make about specific policy features and information about you, the applicant, affect the monthly cost.
Request a short-term disability quote to get a precise estimate of the monthly premiums you might pay for a sample policy configuration, given your characteristics as an applicant.
Four policy features chosen by the applicant determine the short-term disability premium rates. Your monthly costs can go up or down depending on the options you pick.
Believe it or not, where you buy short-term disability coverage impacts the premium rates. Your monthly costs could go up or down based on whether you sign up at work or through private channels.
- Individual short-term disability not through employers tends to cost more because the insurer cannot pool risks and faces higher claims losses
- Group plans through employers typically cost less because issuing companies see safety in large numbers, and you can pre-tax the premiums
The monthly amount is the first policy feature choice affecting short-term disability premium rates. The heftier the monthly benefit, the higher the monthly cost will be.
Applicants can choose between the lesser of two figures.
- Percentage of monthly income (70% maximum)
- Maximum benefit ($6,500 per month limit)
Our short-term disability pay calculator uses these two inputs for its illustration.
The elimination period is the second policy feature influencing short-term disability premium rates. The longer the elimination period, the lower the monthly costs will be.
The elimination period defines how quickly claim payments begin. Applicants have many different choices.
The benefit period is the third policy feature choice affecting short-term disability premium rates. The longer the benefit period, the higher the monthly costs will be.
The benefit period defines the maximum length of claim payments. Applicants have many different choices.
- 3 Months
- 6 Months
- 12 Months
- 24 Months
Several characteristics about the insured individual also go into the equation determining short-term disability premium rates. Monthly costs could go up or down based on the risks connected with the applicant.
Your occupation is the first applicant characteristic impacting short-term disability premium rates. Your monthly cost could go up by 40% if you work in a high-risk job.
- USPS postal workers often pay more because the repetitive tasks lead to chronic injuries to joints and ligaments
- Federal government employees often pay less because the preponderance of job roles are clerical or management
- Self-employed independent contractors could pay more or less due to the wide variety of job roles they might play
At the policy effective date, your age is the second applicant characteristic affecting short-term disability premium rates. Your monthly cost goes up the longer you wait to begin coverage because older people file more claims as their health deteriorates.
You can be denied short-term disability due to a pre-existing condition. Therefore, get started while you are young and healthy, and pay half the premiums of someone beginning coverage in their 60’s.
Your tobacco use is the third applicant characteristic influencing short-term disability premium rates. Your cost per month could be 20% higher if you smoke cigarettes, pipes, or cigars or 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 coverage (not group). Input the three policy features and two applicant characteristics into the online form to get a preliminary result.
Request a short-term disability quote once the calculator gives you a base estimate for your ideal configuration. An agent licensed in your state may contact you.