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Old 12-09-2015 | 12:09 PM
  #1631  
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The Juice
ULTP-Ultra Low Tier Pilot
 
Joined: Dec 2007
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Originally Posted by Hugedouche
Yeah that mostly likely true, but that might only be on the part that the company pays for... Sorry to hear you out I wish you well and the return back to the cockpit soon!

Found this for you:

How to Avoid Taxes on Life and Disability Insurance - MarketWatch

Now for the good news: LTD benefits are generally income-tax-free when you, rather than your employer, pay the premiums. On the other hand, if your employer pays the premiums as a tax-free fringe, any LTD benefits will be fully taxable to you. The same is true if you set aside part of your salary to pay the premiums with before-tax dollars under your employer's cafeteria benefit plan. Here are two strategies to deal with this tax dilemma.

* If LTD benefits would be taxable because your employer is paying the premiums, the preferred solution is to arrange for the premiums to be paid with after-tax dollars by withholding from your salary checks. That way, the premiums are treated as part of your taxable salary, which will cause a slight increase in your income tax bill. However any LTD benefits will be tax-free, which is the bigger consideration here.

That's good information to have. Something that any LTD policy we agree to (whenever that happens) should include; after tax dollars for any buy up policy.