Disability Insurance and Taxes
Feb 23, 2013
Jamie Fleischner

Jamie Fleischner

23 Feb, 2013

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!


Related Posts

The Importance of Life Insurance-Firsthand

The Importance of Life Insurance-Firsthand

Life Insurance I talk to people every day about life insurance. It is always a hypothetical conversation about how much life insurance  you or your loved one would need if something happened. Most of the time, people purchase their life insurance, tuck it away and...

When Can You Drop Your Term Life Insurance?

When Can You Drop Your Term Life Insurance?

The decision to drop or cancel your term life insurance policy depends on your individual financial and insurance needs. Here are some common scenarios when you might consider dropping your term life insurance: The term has expired: Term life insurance policies have a...

We're here to help

Getting the right disability insurance can be downright confusing. At Set For Life, we'll help you understand the options and work with you to select just the right product for you and your family. These articles will help you understand some of the complexities involved, but we're happy to walk you through it! If you're ready to get set, reach out for a quote today!