What Can The Average Person Expect To Pay For Disability Insurance? 
Who is the average person and how much of their compensation does average person want to protect ? Long term disability insurance is paycheck insurance . First determine if your tax bracket warrants deducting the disability insurance premium as a legitimate business . If the answer is yes , apply for 80 % of your compensation . Keep in mind that the benefits will be taxable as ordinary income . If the answer is no , apply for 60 % of your compensation , your benefits will be tax free . Whats the cost ? Whats your gender , age , smoking status , health history , current medical condition ? Whats the amount you want to cover ? How long do you want coverage to last ? What elimination period do you require based on your current cash reserves ? It is possible that you may pay between 3-5 % of the compensation youre attempting to indemnify . 