Taxability of Disability Insurance

Is your individual disability insurance taxable?

If you pay your individual disability insurance premiums with after tax dollars, from a personal account, the benefits payable to you are tax free.

If you deduct your individual disability insurance premiums or pay for them from a business account, the benefits are taxable to you.

Employer sponsored plans or group disability insurance benefits through your employer may be taxable if your employer is paying the premiums.

For more information about the taxability of your individual disability insurance, contact Set for Life Insurance today!