What Should Disability Insurance Cost? 
Disability insurance costs are based on your health , your activities and your compensation . Personal information is part of the pricing process like your gender , age , health history , current medical condition , smoking status , etc. . Your activities like recreation , vocation , motor vehicle violations , etc. . Up to 60 % of your compensation can generally be protected with tax benefits . Up to 80 % of your compensation , if you can legitimately deduct the premiums as a business expense , but then the benefits are taxable . You may pay 3 to 5 % of your compensation for disability insurance . 