In a recent post about disability insurance coverage, we discussed how to determine what amount of disability insurance to buy? Today, we’ll take a look at a quick and easy method to estimate the amount of money needed (as an amount of disability insurance coverage) as accurately as possible.

The most effective and accurate way to estimate your disability insurance needs is to look at your last three months of expenses (use your checkbook register or online statement feature from your bank, if you have that option available) and take the total amount of expenses for each month. Add those three figures up and divide by three to come up with a monthly average amount. Make sure that you do not use a month that includes vacations or other unusual expenses. Pick three average months to use in your calculations.

The resulting amount is a sufficiently accurate estimate of how much money you and your family will need to live on, and will need to replace, or account for, with your disability insurance coverage.

In the next article, we’ll take a look at what are some key terms that you’ll need to know and understand as you shop for disability insurance coverage to make sure you buy the best possible policy to meet your, and your family’s needs. In the meantime, learn more about how affordable disability insurance can be.

Tags: consumer advice, Disability, Disability insurance, Health, Health care, insurance coverage, Insurance policy, Long Term Care

This entry was posted on Saturday, May 1st, 2010 at 4:23 AM and is filed under Disability Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.