What Does Disability Insurance Pay?

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   David RacichPRO

   Fountain Hills, Arizona

   Individual Disability Insurance pays a stated benefit for a stated period according to the policy. If you have a long term disability policy with maximum benefits, it will more than likely pay the benefit to age either one of two ways: 60% of your compensation tax free (because you didn't deduct the premiums) and 80% of your compensation taxable because you deducted the premium.
    

   Answered on June 5, 2013

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