Disability Insurance

[Wimblees@AOL.COM]

In a message dated 98-12-18 08:14:25 EST, you write:

<< Private insurance will may pay 60% of your last 12 months income but will
take
 away any SSDI you get, and you cannot work doing pianos.  Disability is
difficult
 to prove unless you are missing major body parts or have ten physicians
saying you
 cannot work.  You do not pay taxes on disability payments.
 
         Newton >>


Regarding taxes and disability insurance. Unlike health insurance, a portion
of which you can deduct, with the benefits paid to the doctors, hospitals,
etc, disability insurance benefits is cash paid to you when you are disabled.
There are two ways you can do this. If take your disability premiums as a
deduction from your income tax, then the benefits you get will be taxed. If
you do not deduct the prumiums, then the benefits will be tax free.  You are
taking a gamble. If you deduct the premiums, and you never use it, then you
came out ahead. But if you do get disabled, you want every penny that is
coming to you, and having Uncle Sam take a bite out of the your benifits can
make a big difference. 

Wim