Long-Term vs. Short-Term Disability Coverage Estimator (2025)
Estimate how much income protection you'd receive under short-term or long-term disability insurance, and which policy offers better coverage for your needs.
$2,000 – $20,000
Default 60%
Default 60%
Optional
This tool helps you estimate how much income you'd receive under short-term versus long-term disability insurance, based on your salary and benefit structure.
It's ideal for evaluating employer benefits or comparing private disability policies.
Short-Term Disability (STD):
- •Covers temporary illnesses or injuries
- •Usually replaces 50–70% of income
- •Benefits last 6–26 weeks
- •Has little or no waiting period
Long-Term Disability (LTD):
- •Begins after a waiting/elimination period (90–180 days)
- •Replaces 50–70% of income
- •Can last 2 years, 5 years, or until retirement
- •May be offered through employers or private insurers
The calculator projects your total covered income, compares it to your living expenses, and estimates your coverage gap, the shortfall you may need to cover with savings or supplemental insurance.
Scenario Details:
- • Monthly income: $6,000
- • Short-term coverage: 60% for 13 weeks
- • Long-term coverage: 60% for 5 years after 90 days waiting period
If disabled for 1 year:
- • Short-term benefit: $9,000 (13 weeks × $3,000)
- • Long-term benefit: $27,000 (9 months × $3,000)
- • Total income replacement: $36,000
- • Uncovered loss: $36,000 (assuming 12 months total income = $72,000)
Result: The person maintains 50% of total income, adequate for basic needs but potentially requiring supplemental coverage.
| Cause | Avg. Duration | Common Coverage Needed |
|---|---|---|
| Back or joint injuries | 2–6 months | STD + LTD |
| Cancer recovery | 6–18 months | LTD |
| Heart conditions | 6–12 months | LTD |
| Mental health conditions | 3–9 months | STD + LTD |
Important: Nearly 1 in 4 working Americans will experience a disability before retirement (SSA, 2025). Having both STD and LTD ensures continuity of income protection.
- •Check your elimination period, a longer waiting period can reduce premium cost.
- •Coordinate STD and LTD so LTD starts right after STD ends.
- •Review definition of disability (own-occupation vs. any-occupation).
- •Consider inflation protection riders for long-term policies.
- •Review employer benefits annually, many cover only short-term disability.
Q1: How do I know if I need both STD and LTD?
A: Yes, short-term covers initial weeks or months, long-term continues income afterward.
Q2: Are disability benefits taxable?
A: Employer-paid benefits are taxable; individually paid benefits are tax-free.
Q3: What's the elimination period?
A: The time between disability onset and when long-term benefits begin (typically 90 days).
Q4: Can I buy LTD privately?
A: Yes, through individual disability insurance policies.
Q5: What's a good coverage percentage?
A: Aim for at least 60% income replacement after taxes.
- • U.S. Social Security Administration – Disability Statistics 2025
- • Council for Disability Awareness (CDA) 2025 Report
- • Insurance Information Institute – Disability Insurance Guide 2025
- • Forbes Advisor – Short vs Long-Term Disability