Debt Protection Needs Calculator

Calculate your need for protection.

COULD YOU MAKE IT ON STANDARD DISABILITY BENEFITS?

How much would you receive if you became disabled? Here is a worksheet that will help you determine if you have enough insurance to cover your loan payments if you became disabled and were unable to work.

Monthly take-home income (without overtime)

Percentage of income you would receive if you became disabled (%)

Monthly Disability Income:

$0.00

Calculate your monthly expenses

Mortgage or rent payment

Car payment

Car insurance

Utilities (electricity, gas, water, etc.)

Credit Card payment(s)(use minimum payment)

Food and Clothing

Other loan payments

Other monthly payments

Minimum monthly expenses:

$0.00

Compare the income you would receive if you became disabled with your expenses.

Money remaining for other expenses:

$0.00

If your expenses exceed your disability payment, you'll need to draw on backup savings to meet ongoing expenses.

Total expenses covered by disability insurance:

$0.00

Disability Protection

If you have disability coverage through your employer, make sure you know:

The waiting period. According to employee benefit specialists, disability plans require an average waiting period of 60 days before you receive benefits.
Short-term benefits. Employee benefit specialists say that most common employee plan benefit amount is 60 percent of take-home pay for up to six months. Some companies offer long-term disability benefits as well. Check with your employer for details.
Social Security rules and regulations. While Social Security does provide long-term disability, benefits are capped at a portion of normal take-home pay. More than 25 percent of initial requests for Social Security disabilities are denied.*
Just over 1 in 4 of today's 20 year olds will become disabled before they retire. U.S. Social Security Administration, Fact Sheet.

Involuntary Unemployment Insurance

Losing a job is something we'd rather not think about. Unfortunately, it can be a very real possibility. if you experience a job loss, will you receive a severance package from your employer? Are you prepared for the additional stress and financial strain of being unemployed?

About 35 Percent of workers are exhausting their state unemployment benefits before finding work. Source U.S. Dept of Labor, Bureau of Labor Statistics

* Overview of Entitlement Programs, Green Book, Ways and Means Committee, Washington, D.C.

LIFE PROTECTION

It's also important to have life protection to financially protect your home and family if you couldn't be there for them.

Enter the amount that would allow your family to:

Pay off your debts

Pay funeral and estate costs

Replace your income

Provide for the future needs of your survivors*

Total:

$0.00

Compare the total to the amount of life protection coverage you currently have. If there is a gap, you may wish to consider adding additional insurance, such as a Payment Protection coverage.

*The average cost to raise a child to the age of 18 (not including college) is $241,080 according to a study by the U.S. Department of Agriculture.

Note: All studies have been conducted within the past 5 years. Statistics are available upon request.