Originally Posted by Thedude

I just got a shock today when I was doing some research on LTD.
Since it is provided by contractual means, LTD payments are taxable. Which means you will get approx 42% of you pre-tax income and the monthly payment is capped at $8000 prior to tax.
Or an income of $160k would be approx $112k after taxes (max value for LTD).
$8k per month (LTD max payment) is approx $96k per year.
Now since that is taxable it drops to $67k after tax.

Here is the real kicker, if you get any income through any other means. ie buy up via another LTD policy or just plain work.
AMR will reduce the LTD payments so that you still only get a total of $8000 from all sources.

Ouch.