Alaska
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 Alaska to show you the average expenses in the state and why di

How much does it cost to live in Alaska?

Alaska is considered the 10th most expensive state to live in with an average living cost for one person at $1,954 per month, whereas a family of four could expect their expenses to reach $4,577 per month. The average cost of living in Alaska is 24.09% higher than the national average.

Cost of Living Parameters

Housing & Rent

The value of a typical home in the state of Alaska is slightly lower than the national median value. The Median home in the state costs around $356,806; whereas the national median home value reaches $408,800.3 Alaska home values have gone up 4.2% over the past year.4

According to the most recent Apartment List data, the typical rent in Alaska has risen 5.8% in the last year to roughly $1,369, 12.3% higher than that of the national average of $1,219. The most recent increase in rentals has actually exceeded the rise in property values.

Here are some stats on Alaska Mortgages:

  • Homeownership rate: 64.8%
  • Homeowner vacancy rate: 1.3%
  • Rental vacancy rate: 3.8%

Childcare

According to the Economic Policy Institute, the average annual cost of infant care in Alaska is $12,120—that’s $1,010 per month! Whereas childcare for 4-year-olds reaches $10,087 annually, or $841 per month. Alaska is one of the 33 states where infant care is more expensive than college!

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

  • Infant: $12,120
  • 4-Year-Old: $10,087
  • School: $6,926
  • College: $7,221

Utilities

Alaska tends to be much more expensive than the rest of the nation in terms of utility costs, averaging roughly 33% higher than the national average. Because Alaska is notorious for its long, cold winters, it's not a surprise that utilities are among the most expensive living expenses in Alaska for inhabitants.

Utilities in Anchorage cost an average of $265.85 a month, with expenses rising in the winter. After all, the temperature may not rise beyond zero degrees Fahrenheit during certain periods of the year. Thus, keeping your home warm is critical to your safety and comfort. Because the winters in Kenai are milder, residents pay between 5% and 10% less in monthly utilities than those in other areas. Those who live in colder climates, on the other hand, frequently pay more than $400 per month, every month of the winter season.

Food & Groceries

The typical single adult in Alaska spends an average of $3,792 on food and groceries each year, while a family of four with 2 working adults spends $11,106 on average. Both these values are slightly higher than the national average spent on food in the country; $3,240 for a single adult and $9,354 for a family of four. Food prices can significantly contribute to the high cost of living in Alaska. Due to its location, food often needs to be transported long distances to get to grocery stores and restaurants. This is especially true for more rural areas, where lower housing prices are paired with higher food bills. And if gasoline prices go up, food prices will go even higher.

The average price for eating out would be:

  • A basic meal with a drink at an inexpensive restaurant: $14.9
  • Fast food combo (Big Mac etc.): $10.3
  • Bottle of Coca-Cola: $2.37
  • Bottle of water: $1.62

Grocery shopping in the state would cost as follows:

  • Milk (regular), (1 liter): $1.04
  • Loaf of Fresh White Bread (500g): $3.24
  • Rice (1 Kg): $4.88
  • Eggs (regular) (12): $3.26
  • 4 Rolls of toilet paper: $4.04
  • Hair Shampoo: $4.6

Transportation

Public transportation is virtually nonexistent in Alaska; most residents own a car. Car payments, maintenance, insurance, and fuel costs will all likely have to be added into your budget when you live in Alaska.

The average cost of owning a car, keeping in mind maintenance, insurance, and fuel, reaches $22,766 over 5 years. What really costs you money is the fuel and gas money. Because Alaska is far away on the map, the state’s gas is almost a dollar more expensive than other states. On average, an Alaskan resident spends $47 per week on gas for the car! According to the AAA, gas prices in Alaska usually run $0.20 to $0.35 higher than the rest of the country. In January 2021, the national average for a gallon of gasoline was $2.38. In Alaska, that price rose to $2.58.

The public transportation services available in Alaska are as follows:

In Anchorage, you can benefit from the RideShare Vanpooling program with which you can commute with a group of five or more people and save money.

You can also hop on a bus and ride to your destination for the low fare of $2 per single trip, $60 for a monthly pass, or $660 per year via the People Mover system.

Average Income & Taxes

The average yearly income of a single adult living in Alaska is $74,226 and 2% to 9.40% corporate income tax rate.

Most Expensive Alaskan Cities to Live in

  • Homer
  • Unalaska
  • Ketchikan
  • Sitka
  • Kodiak

Why is disability insurance important to have in Alaska?

s shown by the above cost of living study, a steady income is required to live comfortably and worry-free. Whether you work full-time or as a freelancer, getting disability insurance is the first step towards financial stability.

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 62.1% of bankruptcies were caused by medical issues. 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 as well, especially if your income is on hold. You might find yourself unable to pay for utilities and rent, and that eventually could lead to foreclosure. Half of foreclosures on conventional mortgages in Alaska are caused by the disability of one of the homeowners. In fact, Alaska saw 20 foreclosures, making the foreclosure rate one in every 15,876 homes. That caused the third least populated state, with a total of 317,524 housing units, to take the 44th spot.

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 serious accidents. But did you know that up to 90% of disability cases recorded are due to illness, not injury?

With that being said, getting a private disability income insurance should be on top of your to-do list because life is unpredictable and your income shouldn’t be.

Does Alaska 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, Alaska isn’t one of those states.

If you live in Alaska and are unable to work for at least a year due to illness or accident, you may be eligible for Social Security disability insurance (SSDI) or Supplemental Security Income (SSI) benefits. Those who qualify for these federal programs receive monthly cash payouts.

To apply for disability benefits in Alaska, you'll need to have a lot of information on hand, including specifics on the condition(s) that prevent you from working, medical or psychiatric treatment you've had (including doctors' contact information), and your previous job and earnings.

In Alaska, less than a quarter of these administrative hearings result in the applicant for disability benefits receiving benefits (the lowest approval rate in the country). It's also possible that you'll have to wait a long time before your hearing date. In 2019, the average Alaska disability applicant would wait 14 months for their Anchorage hearing.

What qualifies as disability in Alaska?

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 Alaska?

Seeking a private disability insurance policy is the best option in Alaska. 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.

Who qualifies for disability insurance in Alaska?

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 2 types of disability income insurance: Permanent Disability Income Insurance and Sickness & Injury Disability Income Insurance. Please visit asteya.world for more details on the eligibility of our product offering.

How much does disability insurance in Alaska 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 Alaska will cost you $4,061 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 shouldn’t be jeopardized by 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 while thinking about it:

  • 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