Are Short Term Disability Insurance Claims Taxable?
The long and the short of whether ones short term disability insurance claims are taxable depend on how and when the money was paid. To be sure, any income you bring in is taxable unless otherwise expressly written. Some exemptions might include money acquired as the result of a worker’s comp claim or a compensation damages awarded through litigation. This, and other great questions are answered here by Linda Stern, writing for the Insurance journal in a recent piece titled, “Disability Benefits Get More Costlier and Complicated.”
People are looking for certain answers regarding how Obamacare will affect short term disability care coverage, costs, and claims, or how their premiums are going up, and what happens after the claim duration ends?
“Be aware, however, that even long-term disability may not last as long as you expect. The typical length of a disability claim is two-and-a-half years. Insurers will do whatever they can in terms of rehabilitation and job training, to move beneficiaries back to work. And though Cadillac policies (and most privately-sold ones) offers “own occupation” coverage — meaning that you will receive benefits unless you’re able to go back to work in your chosen field — many employer-paid plans only cover “own occupation” benefits for the first two years. After that you’ll be expected to try to find work in any field.”