Disability Insurance - Deducting Premiums from Taxes

[southerndoc]

I will be an independent contractor starting in a few weeks. I am in the process of purchasing disability insurance.

Someone told me that if I do not deduct the premiums from taxes, that I could draw benefits tax-free if I ever became disabled.

Is this true? I tried searching the forums but didn't find any topics, and apparently my Google skills are lacking tonight. (I do not meet with my CPA for a few weeks.)

Thanks!

[maat55]

The most flexible and reliable source of coverage is an individual disability insurance policy you purchase on your own. A privately owned policy is portable, meaning you won't have to worry about losing coverage if you change jobs. Generally, most individual plans will pay between 40% to 65% of your pre-disability gross salary. When paid with after-tax dollars, benefits are received income-tax free.


I got this off a website giving disability information, hope it's helpful. Life and Health Insurance Foundation for Education - LIFE Foundation