Disability Income Calculator

This disability income calculator allows one to calculate what their total remaining income during their lifetime is...or to retirement in the case of disability income.  A person's future income will almost always be their largest asset.  It's just that this isn't usually considered an asset since it's not realized yet.  But once one understands what this future income or potential asset is, they can begin to understand if it's worth insuring this asset against risk of loss via disability income insurance.  

How Does This Calculator Work?

This calculator allows someone to enter their current income and by using an annual percentage increase or income inflation rate, they can project how much income they will receive over their working life.  Then by entering the amount of income protection/disability insurance one currently has, and an annual COLA rate(Cost of Living Adjustment), you can project how much of your future income will be covered by insurance.  

Data Entry Field and Answer Field Definitions

Start Age - The age at which you want to begin projecting your future income.

Retirement Age - The age at which you will retire and no longer be earning income.  Thus, this is where the future projections will end.  

Current Annual Income - The amount of income you are earning at your start age.  

Annual Income % Increase - The rate that your annual income will increase from year to year.  

Monthly Income Protection - The amount of income protection or disability insurance you want to own, or already own for purposes of this projection.

Annual COLA Rate - COLA stands for "cost of living adjustment" and it is the annual rate that your disability income protection will increase.  There are certain additions or "riders" as they are called, that can be added to disability insurance to protect against inflation. 

Value of Income - No Pay Increase - The value of one's projected lifetime income with no pay or income increases.

Value of Income - With Pay Increase - The value of one's projected lifetime income with income increases.  

Income Protection - No COLA - The value of one's projected lifetime income protection or disability insurance with no COLA adjustments.

Income Protection - With COLA - The value of one's projected lifetime income protection or disability insurance with COLA adjustments.