How Much Does Disability Insurance Pay?

The amount of disability insurance paid depends on a number of factors. These include the source of the insurance, disability insurance cost, the type of coverage, as well as additional income sources such as private pensions, workmans’ compensation, and insurance benefits. To determine federal disability insurance payments, information may be obtained through the Social Security […]

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The amount of disability insurance paid depends on a number of factors. These include the source of the insurance, disability insurance cost, the type of coverage, as well as additional income sources such as private pensions, workmans’ compensation, and insurance benefits.

To determine federal disability insurance payments, information may be obtained through the Social Security website, available at ssa.gov. The amount paid, according to the SSA’s FAQ section, is based on “average lifetime earnings”. These can be determined from reviewing yearly Social Security Statements that include an estimated disability benefit amount. These estimates may also be obtained through the Social Security website or by contacting them at 1-800-772-1213.

The SSA’s Disability Insurance FAQ section item, “How do other payments affect my benefits?”, provides resources for individuals who are receiving additional government funds. According to the SSA, there are certain situations that may affect the amount of disability insurance paid. There are three publications that may be downloaded from their website, or ordered by contacting the administration directly. Their titles are “How Workers’ Compensation And Other Disability Payments May Affect Your Benefits”, “Windfall Elimination Provision”, and “Government Pension Offset”.

For privately obtained disability insurance, the amount paid depends upon the type and conditions of coverage, and varies from policy to policy. The National Association of Health Underwriters (NAHU), available at nahu.org, provides information on this subject in their article, “How Much Does DI Cost?” The “Benefit Amount” section states: “Disability policies are typically issued with a specific monthly benefit amount, e.g., $3000/month. Unless specifically stated in the policy language, these policies do not coordinate with Social Security benefits. . .Most disability companies will not issue policies with benefit amounts of more than 60 percent of an individual’s gross income.”

Since the amount an individual will receive is dependent upon their unique situation, it is important not to assume a specific benefit amount will be received until claims have been filed and a determination made.

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