Who Pays For Long Term Disability Insurance?

1. 

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   Peggy Mace

   Most of the U.S.

   If you are employed by a company that offers Long Term Disability insurance, your employer normally pays for it, although they might offer it to you as an option where you pay part or all of the premium. If you are self employed, or work for an employer that does not offer Long Term Disability insurance, you can purchase and pay for a private policy yourself.

   Answered on May 23, 2013

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2. 

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   Kelly Moser

   Social Media Strategist, Disability Insurance Services, California

   If you're employer offers long term disability insurance, you'd be smart to accept the coverage, even if you do need to pay part of the premium.  But don't forget to look into private DI as well.  A lot of group plans don't offer the max amount you're allowed, and it's essential to be fully covered.

   Answered on November 26, 2013

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3. 

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   Tim Wilhoit

   Owner, Your Friend 4 Life, Brentwood TN

   There are two basic types of long term disability. The first is group disability which is paid for by your employer either in part or in whole. The down side to having an employer pay for your disability is he takes the deductions at tax time and if you have a claim all of your disability benefits are taxable as income because you did not pay the premiums. The second type of long term disability is an individual policy that you pay for directly. These are not usually tax deductible to an individual. However, if you receive benefits from a claim this money is tax free to you because you were taxed on the premiums.

   Answered on July 24, 2014

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