Iowa
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 Iowa to show you the average expenses in the state and why disa

How much does it cost to live in Iowa?

Living in Iowa is less expensive than the U.S average as a whole. According to Bureau of Economic Analysis data, commodities in the state cost 10.8% less than they do on a national scale. Iowa has the 11th lowest overall cost of living when compared to all other states.

Living in densely populated urban regions is generally more expensive than living in more rural locations. Iowa has eight metropolitan areas. The Iowa City metro area is the most expensive in the state, with a cost of goods and services that is 6.3% lower than the national average but 4.5% more than the statewide average.

Cost of Living Parameters

Housing & Rent

When compared to the national average, Iowa’s housing prices are considered fairly affordable, with the average home costing $142,300, which is less than the national median home value of $408,000. The median price of a home built in 1939 or before in the state is $95,300, while the median value of a home built in 2014 or after is $317,200.

The average renter in Iowa pays $766 per month for housing, which is $257 less than the national median monthly rent of $1,023. A one-bedroom apartment in the state costs $596 a month, while a property with five or more bedrooms costs $900.

Here are some stats on Iowa Mortgages:

  • Homeownership rate is 73.4%
  • Homeowner vacancy rate is 0.8%
  • Rental vacancy rate is 5.7%

Childcare

Child care costs contribute thousands of dollars to a family's annual budget. The average yearly cost of child care for a four-year-old child in Iowa is $7,875, which is significantly lower than the national average of $8,903. However, it costs an average of $12,025 a year in Iowa to care for a 4-year-old and an 8-year-old child, compared to the national average of $15,853.

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

  • Infant : $10,378
  • 4-Year-Old : $8,6331
  • School: $5,2602
  • College : $8,766

Utilities

Apartment utilities refer to the essential services required in a home such as gas, water, electricity, cable, and internet. According to Space Simply, the average utility bill in Iowa will be around $215 per month for a combination of water, electric, gas, and waste pickup. Cable/internet is the one utility that will vary the most based on where you reside. This amenity is more expensive if you reside in a rural Iowa city. A mid-tier package will cost around $70 per month.

Food & Groceries

A single adult in Iowa spends an average of $2,945 on food per year, while a family of four spends $8,504. In comparison, the average yearly food expenditure in the United States is $3,240 for a single adult and $9,354 for a family of four.

The average price for eating out would be:

  • Dinner in a restaurant for 2: $48.4
  • Fast Food Combo (Big Mac etc.): $7.72
  • Bottle of Coca-Cola: $1.8
  • Bottle of Water: $1.26

Grocery shopping in the state would cost as follows:

  • Milk (regular, 1 liter): $0.86
  • Loaf of Fresh White Bread (500g): $2.19
  • Rice (1 Kg): $3.88
  • Eggs (regular, 12): $2.19
  • 4 Rolls of toilet paper: $3.45
  • Hair Shampoo: $4.79 3

Transportation

Transportation costs can also add significantly to the overall cost of living. 89.5% of commuters in Iowa drive to work, compared to 85.5% nationally. The average driver in the state travels 10,651 miles per year. Taking into account average fuel economy and average gas prices (standard gasoline costs an average of $2.11 per gallon in Iowa in mid-2020), the average Iowa driver can expect to spend $926 on gas alone in a year.

Other transportation expenses, such as car insurance, also vary by state. According to Insure.com, the average vehicle insurance rate in Iowa is $1,327, which is less than the national average of $1,517. According to EPI data, the average single adult in the state spends $10,598 on transportation each year.

Average Income & Taxes

Accounting for state and federal income taxes, as well as Social Security and Medicare payments, the average adult working in Iowa pays $5,812 in taxes per year, which is less than the national average of $6,542.

Most Expensive Iowa Cities to Live in

  • Iowa City
  • Ames
  • West Des Moines
  • Spirit Lake
  • Coralville

Why is disability insurance important to have in Iowa?

As 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 Iowa are caused by the disability of one of the homeowners. In fact, The state of Iowa has the ninth highest foreclosure rate. The foreclosure rate in the 31st most populous state was one in every 4,002 homes, with 353 housing units out of 1,412,789 residences going into 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?

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

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

Although there is no government-sponsored short-term disability insurance in Iowa, some businesses provide it as a benefit, and the individual may be covered by the Family Medical Leave Act or Worker's Compensation.

The Social Security Administration pays monthly disability benefits to approximately 4% of Iowa's almost 2 million inhabitants. However, approximately 70% of applicants for Social Security Administration disability payments are denied at the initial application stage. These applicants must then appeal the SSA's judgment in order to get the disability payments to which they may be entitled.

What qualifies as disability in Iowa?

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) which 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 Iowa?

Seeking a private disability insurance policy is the easiest option in Iowa. 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, so you can go from applicant to insured in no time.

Who qualifies for disability insurance in Iowa?

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 Iowa 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 Iowa will cost you $1,631 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 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