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 Michigan 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 MIchigan?

The cost of living in Michigan is less expensive than the U.S. national average. According to data from the Bureau of Economic Analysis, the average price of goods and services in the state is 7.6% lower than the national average, ranking Michigan 21st in lowest cost of living compared to all other states.

Cost of Living Parameters

Housing & Rent

In Michigan, the average price of a home constructed prior to 1939 is $99,600, while the typical price of a home constructed in 2014 or later is $322,200.

The average renter in Michigan pays $850 per month on housing, $173 less than the national average of $1,023 per month. The average monthly rent for a unit with five or more bedrooms in the state is $1,187, while the average cost for a one-bedroom unit is $672.

Here's some stats on Michigan mortgages:

  • Homeownership rate: 74.3%
  • Homeowner vacancy rate: 0.6%
  • Rental vacancy rate: 5.6%


The annual average cost of childcare for a 4-year-old in Michigan is $8,890, which is slightly higher than the national average of $8,903. However, it costs an average of $16,173 a year to care for a 4-year-old and an 8-year-old, compared to the national average of $15,853.

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

  • Infant: $10,861
  • 4-year-old: $8,890
  • School: $7,325
  • College: $12,435


Michigan ranks in the top 20 lowest states in terms of housing costs. The average monthly cost of utilities in Michigan is $342.68, excluding the average trash bill. For example, the monthly cost of utilities in Lansing, including garbage collection but excluding phone, internet, and cable, is $149.70.

Food & Groceries

A single adult in Michigan spends an average of $3,026 yearly on food, while a family of four spends an average of $8,740. For comparison, the national average yearly food expenditure for a single adult is $3,240 and for a family of four it can reach $9,354.

The average price for eating out would be:

  • A basic meal with a drink at an inexpensive restaurant: $14.10
  • Fast food combo (Big Mac etc.): $8.02
  • Bottle of Coca-Cola: $1.94
  • Bottle of water: $1.19

Groceries in the state would cost as follows:

  • Milk (regular), (1 liter): $0.79
  • Loaf of fresh white bread (500g): $2.41
  • Rice (1 Kg): $3.49
  • Eggs (regular) (12): $3
  • 4 rolls of toilet paper: $3.46
  • Hair shampoo: $4.79


91.2% of commuters in Michigan drive to work, compared to 85.5% of commuters nationwide. The average driver in the state travels 10,200 miles yearly. Considering the average fuel economy and the average cost of gas, the average Michigan driver can expect to spend $892 on gas alone in a single year.

According to data from Insure.com, the average vehicle insurance rate in Michigan is $1,432, which is less than the national average of $1,517. The average single adult in the state spends $9,930 year on transportation, according to EPI data.

Average Income & Taxes

The average yearly income of a single adult living in Michigan is $63,053. Michigan has a flat individual income tax rate of 4.25%. There are also local governments that collect income taxes. Michigan has a corporate income tax rate of 6%.

Most Expensive Michigan Cities to Live in:

  • Birmingham
  • Bloomfield Hills
  • East Grand Rapids
  • Harbor Springs
  • New Buffalo

Why is disability insurance important to have in Michigan?

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 may 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, and that eventually could lead to foreclosure. Half of the foreclosures on conventional mortgages in Michigan are caused by the disability of one of the homeowners. In fact, Michigan continues to have one of the nation's highest rates. According to RealtyTrac Inc., the foreclosure rate is 1 in every 201 homes, whereas the national average is 1 in every 248 homes.

A lot of people still think that the need for disability insurance is not the 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 Michigan 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, Michigan isn’t one of those states.

If you reside in Michigan, you will not be eligible for short-term disability payments from the state, but you can apply for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits.

Approximately one-third of Michigan people are disabled. On their initial application, over 65% of candidates are denied. The appeals procedure consists of four parts. Each level of the appeals procedure must be completed within 60 days of the prior denial, and you must complete each stage before going on to the next, a process that can take a lot of time to complete.

What qualifies as disability in Michigan?

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 Michigan?

Seeking a private disability insurance policy is the easiest option in Michigan. 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 enquiries.

Who qualifies for disability insurance in Michigan?

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 asteya.world for more details on the eligibility of our product offering.

How much does disability insurance in Michigan 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 Michigan will cost you $2,000 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