How Much Does Disability Insurance Cover? 
As Steve mentioned , a private disability insurance policy will cover about 60 % of one 's income , and will provide the insured with TAX-free benefits . Do n't make the mistake of thinking that the disability insurance offered through your employer will offer you the same amount of coverage . While the policy may say it offers up to 60 % , there is typically a cap on the coverage , AND it 's taxable , leaving you with about 42 % of your income -- not 60 % . 