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 Arizona 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 Arizona?

According to MERIC's 2021 Cost of Living Index data obtained in the third quarter of 2021, Arizona ranks 36th among states with the lowest cost of living. The Bureau of Economic Analysis data for 2020 reveals that the average total personal consumption expenditures in Arizona reach $35,264 per year.

Cost of Living Parameters

Housing & Rent

The value of a typical home in the state of Arizona is slightly lower than the national median value. The typical home value in Arizona in late 2021 was nearly $392,000, according to Zillow, whereas the national median home value reached $408,800.

The average monthly rent for an apartment is $1,052, but certain areas have considerably lower rates. Coolidge's median monthly rent is $842, while Tucson's is $846.

And some stats on Arizona mortgages:

  • Homeownership rate: 64.1%
  • Homeowner vacancy rate: 0.7%
  • Rental vacancy rate: 4.7%


Childcare is going to be a significant expense for you, regardless of your family's financial condition, especially during your child's early years.

In Arizona, for example, newborn classroom care costs an average of $1,283 per month, but toddler classroom care costs $981 per month.

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

  • Infant: $10,948
  • 4-year-old: $8,547
  • School: $10,260
  • College: $10,557


If you move to Arizona, you can expect to spend roughly $440 per month on utilities, which is 4.25% more than the national average. Arizona's above-average utility expenses are most likely related to the state's hot, dry climate. In the summer, temperatures routinely exceed 100 degrees, necessitating the need for air conditioning.

Food & Groceries

According to the Bureau of Economic Analysis, Arizona's average annual (non-restaurant) food expense per capita is $3,614, which amounts to around $301 per person each month. However, where you reside in Arizona can affect how much food you pay for.

The average price for eating out would be:

  • A basic meal with a drink at an inexpensive restaurant: $14
  • Fast food combo (Big Mac etc.): $8.48
  • Bottle of Coca-Cola: $2.24
  • Bottle of water: $1.25

Groceries in the state would cost as follows:

  • Milk (regular), (1 liter): $0.77
  • Loaf of fresh white bread (500g): $2.66
  • Rice (1 Kg): $3.68
  • Eggs (regular) (12): $2.48
  • 4 rolls of toilet paper: $3.43
  • Hair shampoo: $4.87


Although larger cities like Phoenix offer adequate public transportation, you may still prefer to go by vehicle. If you travel 15,000 miles per year, your monthly vehicle expenses will be roughly $400, which includes gas, insurance, repairs, and registration.

If you don't mind taking the bus, you can significantly reduce your transportation costs. A 31-day Phoenix Valley Metro pass costs $64, whereas a 30-day Tucson SunGO card costs only $48.

Average Income & Taxes

The average yearly income of a single adult living in Arizona is $63,204. Arizona state income tax rates range from 2.59%, 3.34%, 4.17% and 4.5%.

Most Expensive Arizona Cities to Live in:

  • Sedona
  • Flagstaff
  • Chino Valley
  • Tempe
  • Cottonwood

Why is disability insurance important to have in Arizona?

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 shown 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 might not 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 the foreclosures on conventional mortgages in Arizona are caused by the disability of one of the homeowners. In fact, there were 483 foreclosures in Arizona out of 3,082,000 housing units. This means that one in every 6,381 homes is under foreclosure.

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? 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 Arizona 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, Arizona isn’t one of those states.

For Arizona residents who are unable to work due to a physical or mental condition, the Social Security Administration (SSA) provides two types of disability benefits, and Arizona's worker's compensation program provides long-term disability benefits for persons with permanent disabilities due to work-related injuries or diseases.

Unlike some other states, Arizona doesn’t provide people with short-term disability benefits, and the state no longer provides an additional state payment to SSI beneficiaries. The medical requirements for SSDI and SSI are the same. To be declared disabled, you must be unable to perform substantial gainful activity (SGA), as defined by Social Security. Ability to do SGA is defined as earning $1,310 per month or more (in 2021).

However, SSDI and SSI pay relatively little and have tight qualifying restrictions if you can conduct any considerable gainful employment. In other words, you have massive gaps that you should try to fill while you still can.

What qualifies as disability in Arizona?

If you have disability insurance provided by your employer, make sure to double check the criteria in the agreement that qualifies 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 Arizona

Seeking a private disability insurance policy is the easiest option in Arizona. 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 Arizona?

Most insurance policies 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 Arizona 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
  • Long-Term Disability Income Insurance: starting at is $5/month

The bottom line

On average, living in the state of Arizona will cost you $2,940 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 disability insurance.

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