Either you are referring to the best disability insurance company or the best defensive planning techniques using disability insurance. There are several excellent disability companies in the disability market place. One of the best is The Standard.
The best defensive planning techniques using disability insurance is to determine if you can expense the premium as a business deduction and apply for 80% of your compensation. While it is true that any benefits received will be subject to ordinary income tax, a deduction today is worth the risk of taxable event in the future. Nondeductible disability protects up to 60% of your compensation with tax free distribution of benefits.
If you’re in a high tax bracket, the spread in benefits (80% versus 60%) and the savings in the annual deduction are incentives to expense the premium if you have a legitimate business. Keep in mind that you can also buy disability insurance to cover your qualified plan contributions as well.
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Either you are referring to the best disability insurance company or the best defensive planning techniques using disability insurance. There are several excellent disability companies in the disability market place. One of the best is The Standard.
The best defensive planning techniques using disability insurance is to determine if you can expense the premium as a business deduction and apply for 80% of your compensation. While it is true that any benefits received will be subject to ordinary income tax, a deduction today is worth the risk of taxable event in the future. Nondeductible disability protects up to 60% of your compensation with tax free distribution of benefits.
If you’re in a high tax bracket, the spread in benefits (80% versus 60%) and the savings in the annual deduction are incentives to expense the premium if you have a legitimate business. Keep in mind that you can also buy disability insurance to cover your qualified plan contributions as well.