The average premium for short-term disability insurance is about $86 per month for a person earning $41,600 annually.
The rates can change based on your policy features like monthly amount, elimination period, benefit length, and risk factors like age, job, and tobacco use.
First, learn how policy features and risk factors affect your monthly premiums. Then, use our online calculator for an instant estimate.
Finally, ask a licensed agent for a precise quote. Complete an application for a new policy and enjoy peace of mind.
Our online calculator provides estimates only. Use it to find options that fit your budget. Ask a licensed insurance agent for a final quote. Then, apply for coverage.
Policy Features Affecting Premiums
Three short-term disability insurance policy features interact to determine the monthly premiums. Your costs can change based on your feature choices, but the rates stay the same once the policy begins.
See how our calculator uses each feature choice to estimate premiums.
Elimination Period
The short-term disability elimination period defines how quickly claim payments begin. The shorter the elimination period, the higher premiums will be.
Applications can choose between several elimination period options. Our calculator considers these elimination period cost factors when estimating the monthly premiums.
- 7 days: 180%
- 14 days: 150%
- 30 days: 100%
- 60 days: 60%
Benefit Period
The short-term disability benefit period defines the maximum length of claims payments. The longer the policy’s benefit period, the higher the premiums.
Applicants can choose between several benefit period options. Our calculator uses the following relative cost factors when estimating the monthly premiums.
- 3 months: 60%
- 6 months: 70%
- 12 months: 100%
- 24 months: 130%
Monthly Amount
The monthly short-term disability amount defines what the policy will pay every 30 days. The higher the monthly amount, the more the coverage will cost.
Applicants can choose a monthly amount equal to 70% of their full-time income, subject to a limit. For example, many insurance companies cap the amount at $7,500.
The monthly amount has a linear cost relationship. If the amount doubles, so do the premiums. Our calculator multiplies these numbers.
- $1,500: 50%
- $3,000: 100%
- $6,000: 200%
Applicant Traits Affecting Cost
Several applicant characteristics affect short-term disability premiums. Monthly costs could vary based on how insurance companies perceive specific risk factors.
See how our calculator handles applicant traits. People likely to file a future claim typically pay more, with one notable exception.
Male-Female
Your gender does not impact costs even though women file more short-term disability claims than men. Notice that our calculator does not ask if you are male or female.
Women might be eligible for maternity leave benefits that are never available to men. Three scenarios are likely for women planning to conceive.
- Pregnancy disability leave before birth
- Recovery from labor and delivery
- Postpartum medical complications
Age at Application
The person’s age on the day they apply for coverage affects costs. Older people pay higher premiums because they are more likely to file a claim.
Our calculator uses the following age-related cost factors.
- 18-35: 80%
- 36-45: 90%
- 46-55: 100%
- 56-65: 120%
- 66+: 160%
Women aged 18-35 pay the lowest premiums, even though they are most likely to file pregnancy-related claims. This loophole makes the cost very favorable.
Don’t wait until after conception to buy coverage. You can get a new policy, but it will exclude pregnancy-related benefits for twelve months.
Occupation or Industry
Your occupation or your employer’s industry affects costs. Insurance companies charge higher premiums to people working in hazardous jobs.
Our calculator ignores industry-related risk factors, as there are over 10,000 Standard Industrial Classification (SIC) codes to consider. Expect your final premiums to vary based on how the insurance company categorizes your employer.
- AAA: 80%
- AA: 90%
- A: 100%
- B: 120%
USPS postal employees have high-risk occupations due to their repetitive physical tasks. However, as federal employees, they can get a better rate through the larger group.
Tobacco Use
Past tobacco use will affect the monthly premiums. Smokers are more likely to file a claim, so insurance companies factor this added risk into the equation.
Our calculator adds 20% to the cost for anyone who smoked cigars, cigarettes, or pipes or chewed tobacco in the past. Current users pay the same rate.
