How Much Income Does Disability Insurance Replace? 
Disability insurance replaces a percentage of your gross monthly income , often in the 60 % to 75 % range . In some cases , with very high incomes , the percentage is lower , like 40 % to 50 % . Personally owned and personally paid disability insurance is usually a tax free benefit at time of claim ; this is one reason for the reduced percentage . Another reason is that the insurance company must maintain an incentive for people to return to work ; you should always make more money working than collecting disability insurance benefits . 