Title: Is Disability Insurance Tax Deductible? | LendEDU
Headings: Is Disability Insurance Tax Deductible?
Is Disability Insurance Tax Deductible?
Melissa Horton
What is Disability Insurance?
What Part of Disability Insurance is Subject to Taxation?
What Part of Disability Insurance is Not Subject to Taxation?
Bottom Line

Content: These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site. Your biggest financial asset over your lifetime is not your home or your personal belongings. From a financial perspective, the most powerful asset you have is your ability to earn an income over the course of several years. Without income, it is impossible to create the life you want over time. However, many people overlook their earning ability as an asset, and because of this oversight, fail to recognize that it can be protected with the help of insurance. Through insurance, you have the ability to transfer your risk of financial loss away from yourself and into the hands of an insurance company. In exchange for paying a premium, an insurance provider may pay for certain events that result in damage or loss. When it comes to your earning ability, disability insurance can make a significant, positive difference in your financial picture. However, it is important to know how this type of insurance impacts your taxes, both from an insurance premium perspective and a benefits perspective.