Disability Insurance

Everyone deserves the opportunity to protect their quality of life and their future, and with disability insurance, you can. You can think of disability insurance as your financial safety net, giving you an earnings replacement if you’re not able to earn a paycheck due to illness or injury. We’ve laid out the cost-of-living analysis in Alabama to show you the average expenses in the state and why disability insurance can give you peace of mind during unpredictable times.

How much does it cost to live in Alabama?

Home to 4.983 Million citizens, Alabama has the 3rd lowest overall cost of living when compared to all other states. According to Bureau of Economic Analysis data, goods and services in the state cost 13.3% less than they do on a national level.

Cost of Living Parameters

Housing & Rent

On average, Alabama renters pay $772 per month, $251 less than the national average of $1,023. If you want to buy a house in the state, the typical home value is worth $137,200, less than the national median home value of $408,800.

Here are some stats on Alabama Mortgages:

  • Homeownership rate: 73.3%
  • Homeowner vacancy rate: 0.7%
  • Rental vacancy rate: 12.5%


In Alabama ,the average annual cost of infant care is $6,001—that’s $500 per month. Child care for a 4-year-old costs $5,184, or $432 each month.

Here’s a look at the annual childcare costs from infant to college:

  • Infant: $6,001
  • 4-year-old: $5,184
  • School: $7,5862
  • College: $9,827


Apartment utilities refer to the essential services required in a home such as gas, water, electricity, cable, and internet. An Alabama resident can expect to spend up to $397 per month on apartment utilities on average.

Food & Groceries

A single adult in Alabama spends an average of $3,210 on food each year, while a family of four's annual food cost reaches $9,271 These figures are based on a nutritionally appropriate diet purchased from a grocery shop and prepared at home.

The average price for eating out would be:

  • A basic meal with a drink at an inexpensive restaurant $14.2
  • Fast food combo (Big Mac etc.) $7.92
  • Bottle of Coca-Cola $1.95
  • Bottle of Water $1.22

Grocery shopping in the state would cost as follows:

  • Milk (regular), (1 liter) $0.9
  • Loaf of fresh white bread (500g) $2.6
  • Rice (1 Kg) $3.57
  • Eggs (regular) (12) $2.77
  • Chicken fillet (1kg) $10.9
  • 4 Rolls of toilet paper $3.63
  • Hair shampoo $4.83


94.3% of commuters in Alabama drive to work, compared to 85.5% nationally. The average motorist in the state drives 14,498 miles per year. Taking average fuel economy and average gas prices into account, the average motorist in the state may expect to spend $1,155 on petrol alone in a year.

Other transportation expenditures, such as car insurance, also vary by state. According to, the average vehicle insurance rate in Alabama is $1,062, which is less than the national average of $1,517. According to EPI data, the average single adult in the state spends $10,292 on transportation each year.

Average Income & Taxes

The average yearly income of a single adult living in Alabama is $55,322 and the state has a graduated income tax with rates ranging from 6.55%.

Most Expensive Alabama Cities to Live in

  • Orange Beach
  • Vestavia Hills
  • Hoover
  • Fairhope
  • Gulf Shores

Why is disability insurance important to have in Alabama?

As shown by the above cost of living breakdown, a steady income is required to live comfortably and worry-free. But sometimes you find yourself unable to work due to some sort of emergency, illness, or accident. Whether you are a full-time employee or a freelancer, getting disability insurance is the first step towards financial stability and peace of mind.

What would happen if you found yourself unable to earn a paycheck because you were too ill or injured to work? According to a recent survey conducted by the personal financial website Bankrate, more than half of Americans (51%) have less than three months' worth of emergency funds.

Medical bills are reported to be the number one cause of U.S. bankruptcies. One study has claimed that medical issues caused 62.1% of bankruptcies. Other studies show that over 2 million people are adversely affected by their medical expenses.

If medical bills start piling up, you’ll no longer be able to support your lifestyle in other areas, especially if your income is on hold. You might find yourself unable to pay for utilities and rent, which could lead to foreclosure. Half of the foreclosures on conventional mortgages in Alabama are caused by the disability of one of the homeowners. In fact, the foreclosure rate in the state reaches one in every 3,667 homes.

A lot of people still think that the need for disability insurance is not top priority, thinking that disability rarely happens, and when it does, it’s only caused by severe accidents. But did you know that up to 90% of disability cases recorded are due to illness, not injury?

That said, getting private disability income insurance should be on top of your to-do list because life is unpredictable but your income shouldn’t be.

Does Alabama have state disability insurance?

Only 5 states in the U.S. require companies to provide their employees with disability insurance coverage that includes benefits for accidents or illnesses sustained outside of the workplace. Unfortunately, Alabama is not among these states.

If you become disabled and live in Alabama, you may be eligible for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) (SSI). While SSDI and SSI are both federal programs run by the Social Security Administration (SSA), Alabama's scheme differs from other states in some ways.

If you receive SSI, the government monthly benefit amount is $771 for an individual and $1,157 for a couple (in 2019), but whether you receive the whole amount is determined by your income.

What qualifies as disability in Alabama?

If you have disability insurance provided by your employer, make sure to double-check the criteria in the agreement that qualify you to receive disability benefits when you’re unable to work. Some of these criteria can include the following:

  • You are unable to perform the Substantial and Material Duties of your Regular Occupation as shown on the Schedule and;
  • You are under the Regular Care of a Physician appropriate for your disabling Sickness or Injury and;
  • There is no reasonable simplified worksite modification(s) that would allow you to perform one or more of the Substantial and Material Duties of your regular job.

How can I easily get disability insurance in Alabama?

Seeking a private disability insurance policy is the best option in Alabama. Here at Asteya, we offer disability insurance (or disability income insurance as we like to call it) that’s simple, fast, and affordable. Our 100% digital process means we don’t tire you out with proof of income, medical exams, phone interviews, or wait times. Click here to get a quote, or contact us for any inquiries.

Who qualifies for disability insurance in Alabama?

Most insurances are bought to protect homes, vehicles, and health, but our most valuable asset tends to get neglected: our income. 70% of working Americans live paycheck to paycheck, with little savings to buffer the financial burden of a disability that leaves them unable to work.

At Asteya, we offer a variety of disability income insurance policies. Please visit for more details on the eligibility of our product offering.

How much does disability insurance in Alabama cost?

Protecting your income shouldn’t be a luxury, so here at Asteya, we’ve created affordable and easy solutions that won’t drain what you’re trying to protect (your income!). Our prices start as low as:

  • Permanent Disability Income Insurance: starting at $6.05/month
  • Sickness & Injury Disability Income Insurance: starting at $5/month

The bottom line

On average, living in the state of Alabama will cost you $2,988 per month, give or take – that’s a lot of expenses! You've invested a lot of time and hard work in building a life that works for you, and your hard work should not go to waste due to an accident or illness. That’s why you should protect your lifestyle and your income with DI.

If you're still on the fence about whether disability income insurance is for you (hint: it is), here are a few extra points to consider:

  • Asteya’s applications are 100% digital . We don't require blood tests or doctor's appointments, unlike other insurers and we'll just ask you a few minutes of questions to determine your best policy.
  • Get paid out directly on an approved claim, and spend without restrictions once it's in your bank account.
  • We've made our Income Insurance as inclusive and accessible as possible. From corner store employee to corner office executive, our products were created to fit every budget and lifestyle.

How do I get disability insurance?

Get a quote from Asteya in seconds and go from applicant to insured in minutes