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Disability Insuarnce

Was: Quarterly taxes for self employed

At age 59, I’ve had a policy since I was 25, pays $3000 a month. Not
much today standards, but have had it for 30 years. Cheap at a young

if you get disabled, there is a 60% chance that in 2 years you’ll be
back to work…or dead.

I’d sugegst that PLUS get Long care Insuarnce (Got it 10 years ago)
pays if you need to go to a “home” or even in bed.

David Geller

Hi Laurie,

I thought that I might reply on the subject of disability insurance
from our experience.

If you buy an individual disability policy, and you pay for it with
pre-tax dollars (taking the cost of the coverage as a business
expense) the benefit will be taxable. If you pay for it with after
tax dollars (and take no deduction for the premium payments), the
benefits will not be taxable. That is a BIG difference.

Secondly, if you buy into a group policy, it will come under the
rules of ERISA which simply put, does not allow for a lawsuit against
the carrier to include punitive damages, which is about the only
thing that keeps insurance companies from messing with you should you
file a claim. And mess with you they will. They are in the business
of making money and have no kindness in their hearts.

Susan Ronan
Coronado, CA