Private Disability Insurance - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

A Path Together · #1 (**permalink**) 04-01-2008, 05:54 PM

Hi all,
This is my first post in the forums. I was wondering how many people have disability insurance through a private insurer. I have disability insurance through my employer (I think taxes would be taken out of any benefit) and have been thinking of adding private insurance as well.

Shell · #2 (**permalink**) 10-18-2008, 03:34 AM

You ahve to check first with the insurer if they pay disability benefits if you got disabled. I am guessing that you are already taking disability payments. And if you add or top up, it would be better to get additional coverage from your employer - flex benefits.

I am not sure if I got your question correctly, but that is my take on that

Shell

GarySpicuzza · #3 (**permalink**) 11-14-2008, 03:41 AM

Quote:

(I think taxes would be taken out of any benefit)

Disability benefits being taxed or not depends on who is paying the premium.

A Private Disability Policy where the premiums are paid with after tax dollars the benefits are NOT taxable.

Company paid premiums where the company takes an income tax deduction for the premiums paid ARE considered taxable income to the recipient.

See THIS LINK.