The average premium 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 start your safety net.
At least seven distinct factors go into calculating short-term disability insurance premium rates. Your choices about specific policy features and information about you, the applicant, affect the monthly cost.
Policy Features Affecting Cost
Four policy features chosen by the applicant influence determine the short-term disability premium rates. Your monthly costs can go up or down depending on your choices.
Get a rate quote tailored to you to estimate the monthly premiums you might pay for a sample policy configuration, given your characteristics as an applicant.
Purchase Point
Believe it or not, where you buy short-term disability coverage impacts the premium rates. Your monthly costs could increase or decrease based on whether you sign up at work or through private channels.
- Individual policies disconnected from employers tend to cost more because the insurer cannot pool risks and faces higher claim losses.
- Group plans through employers typically cost less because issuing companies see safety in large numbers, and you can pre-tax the premiums.
Monthly Amount
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.
Applicants can choose between the lesser of two figures.
- Percentage of monthly income (70% maximum)
- Maximum benefit ($6,500 per month limit)
Our payment estimator uses these two inputs in its calculations.
Elimination Period
The elimination period is the second policy feature influencing short-term disability premium rates. The longer the elimination period, the lower the monthly costs.
The elimination period defines how quickly claim payments begin. Applicants have many different choices.
- 7/7
- 14/14
- 30/30
- 60/60
Benefit Length
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.
The benefit period defines the maximum length of claim payments. Applicants have many different choices.
- 3 Months
- 6 Months
- 12 Months
- 24 Months
Applicant Factors Affecting Cost
Several characteristics of the insured individual also influence short-term disability premium rates. Monthly costs could go up or down based on the risks associated with the applicant.
Occupation
Your occupation is the first applicant characteristic impacting short-term disability premium rates. Your monthly cost could increase 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 are often paid less because the preponderance of job roles is clerical or management.
- Self-employed independent contractors could pay more or less due to the variety of job roles they might play.
Age
Your age is the second applicant characteristic affecting short-term disability premium rates at the policy effective date. Your monthly cost increases the longer you wait to begin coverage because older people file more claims as their health deteriorates.
You can be denied coverage 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 60s.
Tobacco
Your tobacco use is the third applicant characteristic influencing short-term disability premium rates. Your monthly cost could be 20% higher if you smoke cigarettes, pipes, or cigars or put a pinch between your cheek and gums.
