Should You Pay Physician Disability Premiums with Pre- or Post-Tax Dollars? (Part 2 of 2)

Physician Disability Insurance Premiums with Pre or Post Tax Dollars

Earlier this week, in Part 1 of our 2-part series, I explained that if your employer pays premiums on a long term physician disability income policy with funds not included in your income checks, your benefit amounts (including lump sum settlements) will be taxed during your disability claim. While they do tend to be an attractive option due to the savings you receive by paying with pretax income, the reality is, in the long run, you’re not saving much, if anything.

Here’s an example.