When Does Coverage End on a Group Life Insurance Policy?
When an employee is terminated or retires, a legal right (subject to certain conditions) called a conversion privilege comes into … Read more
Disability Income Insurance
Do Any Disability Income Insurance Companies Offer Temporary Disability Insurance as is Common With Life Insurance?
The authors are not aware of any companies that offer temporary disability insurance. Upon reflection, at least one reason such … Read more
What is Disability Buy-Out Insurance?
Disability buy-out insurance is designed to provide coverage funds to buy out the disabled individual’s interest in a business upon … Read more
How is a Disability Income Benefit Received Under a Life Insurance Policy Treated for Income Tax Purposes?
When policyowners receive disability income benefits under a disability rider attached to a life insurance policy, the tax rules treat … Read more
Are Disability Income Benefit Payments Subject to Income Tax Withholding?
While the tax laws generally require employers to withhold income tax from disability income benefit payments, the tax rules do … Read more
Are Personal Disability Income Insurance Payments Paid With Pre- or Post-Tax Dollars?
Most often, disability plans that require employee contributions be paid with post-tax employee dollars. If so, benefit payments are free … Read more
Are Disability Income Benefit Payments Subject to FICA and FUTA Tax?
Payments made to disabled employees by either an employer or an insurer are subject to social security tax (FICA) and … Read more
What is the “Regular Care and Attendance of a Physician” Requirement Within Disability Income Insurance?
Generally, an element of meeting the definition of disability under a disability income policy is that the insured person must … Read more
What Definition of Disability Does the Government use to Determine One’s Eligibility for Disability Benefits Under Social Security?
Disability for Social Security purposes is defined as the inability to engage in any substantial gainful activity by reason of … Read more
Alternatives to Buying Disability Income Insurance
Alternatives to disability income coverage include self-insuring against the possibility of a disability, purchasing a life insurance policy with a … Read more