Accountant’s Angle: How to Deal With Your Disability Benefits During Tax Season

During this time of year, many people have questions about the tax effects of their disability benefits and how they can be reported on their tax returns.  Many of these questions are addressed by one of our partners, who’s a Certified Public Accountant.  These answers may help you with some of the issues that may come up with your benefits and the related income taxes.   Continue reading

Disability Insurance Financials, Part 3 of 3: Other Types of DI

This series on the finances of disability insurance has focused mainly on disability income insurance because it is the most common type of disability insurance, but there are several others that warrant discussion.  In addition to disability income insurance, there are also business overhead expense policies, key-man policies, and buy-sell policies.  Agents offer these policies as stand-alone products or as part of a disability risk management plan for business owners and other individuals who are vital to the everyday well-being of the company.  These highly specialized policies each have their own separate rules and are taxed accordingly. Continue reading

Disability Insurance Financials, Part 2 of 3: Social Security Awards

The Social Security Disability Insurance program, or SSDI, had a large influence in the private disability insurance world.  From helping determine the diagnosis of an insured to the amount of an insured’s benefit check each month, it is almost impossible to deal with private insurance without worrying about Social Security.  This is why Social Security questions are some of the most common inquiries that come into our office.    In the second blog in this series, we are going to discuss the different ways that SSDI payments have on a private insurance claim and the proper ways for an insured to handle problems. Continue reading

Disability Insurance Financials, Part 1 of 3: Tax Time Surprises

It’s tax time again and many people are now realizing the large tax bills that disability benefits can cause.  We are getting many questions about disability insurance and how it relates to income taxes and retroactive Social Security awards.  We have so much to talk about, we decided to turn this article into a three-part series over the next few days to break up the information into more manageable sections.  Today, I am going to be discussing how disability insurance relates to your taxes as well as how you can lessen any tax burdens caused by your benefits. Continue reading