Rhode Island
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 Rhode Island to show you the average expenses in the state and

How much does it cost to live in Rhode Island?

Living in Rhode Island costs about the same as it does in the rest of the United States. According to Bureau of Economic Analysis data, goods and services in the state cost just 0.7% less than they do nationally on average. Living in densely populated urban regions is generally more expensive than living in more rural locations. Rhode Island has only one major urban region.

Cost of living parameters

Housing & Rent

The average home in Rhode Island is worth $249,800, which is less than the national median home value of $408,000. The average price of a home built in 1939 or before in the state is $222,800, while the median value of a home built in 2014 or after is $386,600.

The average renter in Rhode Island pays $981 per month for housing, which is $42 less than the national median monthly rent of $1,023. A one-bedroom apartment in the state costs $775 per month, while a property with five or more bedrooms costs $1,404.

Here are some stats on Rhode Island Mortgages:

  • Homeownership rate is 62.4%
  • Homeowner vacancy rate is 1.0%
  • Rental vacancy rate is 2.5%

Childcare

Childcare costs contribute thousands of dollars to a family's annual budget. In Rhode Island, the average yearly cost of childcare for a four-year-old child is $9,955, which is much more than the national average of $8,903. Similarly, a 4-year-old child and an 8 year old child in Rhode Island cost an average of $17,651 a year, compared to the national average of $15,853.

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

  • Infant: $13,696
  • 4-year-old: $10,687
  • School: $15,512
  • College: $12,239

Utilities

Apartment utilities refer to the essential services required in a home such as gas, water, electricity, cable, and internet. Utilities in Rhode Island are among the most expensive in the country. According to Move.org, the average monthly cost of utilities in Rhode Island are $521.98, ranking third in the country after Hawaii and Alaska.

Food & Groceries

A single adult in Rhode Island spends an average of $3,414 on food per year, while a family of four spends $9,859. 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: $59.4
  • Fast Food Combo (Big Mac etc.): $8.03
  • Bottle of Coca-Cola: $1.88
  • Bottle of Water: $1.38

Grocery shopping in the state would cost as follows:

  • Milk (regular, 1 liter): $0.92
  • Loaf of Fresh White Bread (500g): $2.72
  • Rice (1 Kg): $3.72
  • Eggs (regular, 12): $2.44
  • 4 Rolls of toilet paper: $3.52
  • Hair Shampoo: $5.07

Transportation

88.7% of Rhode Island commuters drive to work, compared to 85.5% nationally. The average driver in the state travels 7,573 miles per year. Taking average fuel economy and average gas prices into account (standard fuel costs an average of $2.17 per gallon in Rhode Island in mid-2020), the average driver in the state may expect to spend $679 on gas alone in a year.

Other transportation expenditures, such as car insurance, may vary by state. According to Insure.com, the average vehicle insurance rate in Rhode Island is $1,449, which is less than the national average of $1,517. According to EPI data, the average single adult in the state spends $9,216 on transportation each year.

Average Income & Taxes

Accounting for state and federal income taxes, as well as Social Security contributions and Medicare payroll, the average working adult in Rhode Island pays $6,014 in taxes per year –less than the national average of $6,542.

Most Expensive Rhode Island Cities to Live in

These are the 5 most expensive places in Rhode Island:

  • Newport
  • Narragansett Pier
  • Newport East
  • Harrisville
  • Westerly

Why is disability insurance important to have in Rhode Island?

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 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. In fact, half of foreclosures on conventional mortgages in Rhode Island is caused by the disability of one of the homeowners. The 38th highest foreclosure rate was recorded in Rhode Island. Out of a total of 483,474 housing units, 51 went into foreclosure, resulting in a foreclosure rate of one in every 9,480 families in the Ocean State.

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

Does Rhode Island have state disability insurance?

Rhode Island offers a state-run program that provides employees with temporary disability insurance (TDI), which is funded by a specific tax taken from their pay. Employees who are unable to work due to illness, injury, or pregnancy may be eligible for a cash benefit to supplement their lost pay. The Rhode Island Department of Labor and Training manages the TDI program.

If you become disabled in Rhode Island, You can apply online by visiting the TDI website, or you can print an application and mail it to TDI, P.O. Box 20100, Cranston, RI 02920. Your doctor must also provide verification that you are unable to perform your job duties.

Despite being the smallest state in the country, Rhode Island is home to nearly 250,000 people with disabilities. Unfortunately, not everyone has access to the disability programs that are available.

How can I easily get supplemental disability insurance coverage in Rhode Island?

A supplemental disability insurance coverage is an excellent strategy to safeguard your income and way of life. It helps to compensate for a portion of the 40% gap that most work policies provide. Also, the majority of supplemental disability insurance benefits are tax-free.

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, which means you go from applicant to insured in no time.

Signing up for Asteya’s private disability insurance also has many benefits:

  • You are free to spend your benefit payments anyway you see fit.
  • Benefit payments may continue until you retire or recover.
  • You can add disability riders to your policy to increase your coverage.

Who qualifies for disability insurance in Rhode Island?

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 Rhode Island 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 Rhode Island will cost you $2000 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.

When it comes to Rhode Island’s state disability insurance, Your claims must be filed within 90 days of the 1st week out of work due to illness. If approved, payments will be dependent on your earnings in the year preceding your application for TDI benefits. Your weekly payment will be 4.62% of your earnings during the highest quarter of your base period. (Because there are 13 weeks in a quarter, this comes out to around 60% of your weekly compensation).

The amount of benefit you receive can also be reduced for a number of reasons. This includes part-time work, military pay, bonuses, worker’s compensation payments, holiday pay and any other type of income. Depending on a person’s individual situation, a number of these could apply. Relying on the state DI program alone will not be enough.

But when it comes to private insurance, at Asteya, the benefit you get approved for is the benefit you receive, so you can rest assured knowing you’re covered – no surprises.

How do I get disability insurance?

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