Sample Disability Benefit Worksheet for Disability Insurance

Column 1: Monthly Expenses During a Disability

Home or Rent Payment:
Home Repairs:
Home Gas/Water/Electric/Phone/Cable/Other Utilities:
Food:
Clothing:
Home/Auto/Life/Health & Other Insurance Premiums:
Credit Card and Auto Loans:
Auto Gas/Transportation/Maintenance Fees:
Child Care:
Spending Money:
Total Monthly Expenses:

Column 2: Monthly Income During a Disability

Partner's Income:
Employer Disability:
Social Security:
Income from Investments:
Miscellaneous Income:
Total Monthly Income:

Total Expenses (minus - ) Total Income = Your Total Disability Benefit Needed from Your Disability Income Insurance

Don't Forget the Tax Man

Before rushing off to your insurance agent with your worksheet, there is one additional area to consider when determining what disability benefit you will need from your disability insurance. With the changes in your income during a disability, there is likely to be a change in your taxes. You will probably have reduced wages and this will change both your state and federal income taxes. The tax on your investment income may change too resulting in an overall lower tax rate. And, your disability income insurance will be tax-free if you paid for it with after-tax dollars. For the most accurate disability benefit estimate it is best to take your worksheet to a tax professional or accountant. You don't want to wait until after your disability to find out that you don't have enough money. Most experts will agree that it is better to figure too high than too little when determining your disability benefit amount for your disability insurance. Bobbie Sage