South Dakota
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 South Dakota 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 South Dakota?

South Dakota is a good place to live in terms of cost. Housing and utilities, in general, cost less than the national average. But because the state is in a rural area, some costs, like food, are higher. Different cities and towns in the state have different costs of living and ways of life to fit a wide range of budgets and interests. 

According to data from the Bureau of Economic Analysis, the average price of goods and services in the state is 12.1% lower than the national average. South Dakota has the sixth lowest overall cost of living among all other states. 

Cost of Living Parameters

Housing & Rent  

Before deciding to move to South Dakota, one of the most important factors you will certainly examine is the cost of housing. The median cost of a home in South Dakota is $193,700. A home built in 1939 or earlier has a median value of $101,600 across the state, while a home built in 2014 or later has a median value of $301,000. 

The average South Dakota renter spends $722 per month on housing, $301 less than the national median monthly rent of $1,023. The average monthly rent for a unit with five or more bedrooms is $898, while the average price for a one-bedroom flat is $553. 

Here's some stats on South Dakota Mortgages

  • Homeownership rate: 71.7% 
  • Homeowner vacancy rate: 0.7% 
  • Rental vacancy rate: 10.0% 


The average yearly cost of child care in South Dakota is $6,349, which is significantly less than the national average of $8,903. In South Dakota, it costs an average of $12,215 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: $6,511 
  • 4-Year-Old: $6,349 
  • School: $3,825 
  • College: $8,540 


Apartment utilities refer to the essential services required in a home such as gas, water, electricity, cable, and internet. A South Dakota resident can expect to spend up to $384 per month on apartment utilities on average.   

Food & Groceries   

In most South Dakota cities, food costs are higher than the national average. Overall, grocery prices are 1.8% higher than the national average. The state's remote location and large distances between cities may contribute to these increased prices. The typical South Dakota person spends between $233 and $266 per month on food, or between $2,801 and $3,200 per year. 

The average price for eating out would be:    

  • A basic meal with a drink at an inexpensive restaurant: $14.5 
  • Fast food combo (big mac etc.): $8.7 
  • Bottle of Coca-Cola: $2.49 
  • Bottle of water: $1.06 

Grocery shopping in the state would cost as follows:   

  • Milk (regular), (1 liter): $0.9 
  • Loaf of fresh white bread (500g): $2.47 
  • Rice (1 Kg): $4.06 
  • Eggs (regular) (12): $3.16 
  • 4 Rolls of toilet paper: $3.63 
  • Hair shampoo: $5 


South Dakota is known for having a lot of land but not many people to live there. There aren't many public transportation options because cities are spread out over large areas. Most big cities have public transportation like buses. But having a car is a must in some small towns and communities. 

89.0% of commuters in South Dakota drive to work, compared to 85.5% of commuters in the rest of the country. The average driver in the state goes 11,042 miles per year. Taking into account the average fuel economy and the average price of gas (in South Dakota, regular gas cost an average of $2.16 per gallon in mid-2020), the average driver can expect to spend $985 on gas alone in a year. 

According to data from, the average cost of car insurance in South Dakota is $1,434, which is less than the average cost in the rest of the country, which is $1,517. And the EPI says that a single adult in the state spends an average of $10,641 a year on transportation. 

Average Income & Taxes   

The average yearly income of a single adult living in South Dakota is $69,853. South Dakota has no income tax on individuals. South Dakota excludes a corporate income tax as well. The state sales tax sales tax rate in South Dakota is 4.50%, the maximum local sales tax rate is 4.50%, and the average combined state and local sales tax rate is 6.40%. 

Most expensive South Dakota cities to live in   

  • Spearfish     
  • Watertown     
  • Rapid City     
  • Sioux Falls 
  • Brookings 

Why is disability insurance important to have in South Dakota?

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’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 South Dakota are caused by the disability of one of the homeowners. In fact, The fifth least populous state had a foreclosure rate of one in every 48,740 households with eight foreclosures, ranking it 50th in terms of foreclosure rate across the nation. 

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 South Dakota 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, South Dakota isn’t one of those states.  

Residents of South Dakota who have a disability can apply for help from Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Both SSDI and SSI are paid for by the federal government, but each state decides who is eligible. About 25% of the people living in South Dakota have a disability, but only about 4% of those people are getting help from SSDI right now. 

Unfortunately, the Social Security Administration will deny approximately 70% of all claims it receives. This results in the majority of South Dakota Social Security Disability applicants needing to submit an appeal in order to acquire the necessary compensation. 

What qualifies as disability in South Dakota?

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 South Dakota?

Seeking a private disability insurance policy is the best option in South Dakota. 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 South Dakota?

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 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 South Dakota 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 South Dakota 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 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