• Does It Matter Who Pays My Disability Insurance Premiums?Does It Matter Who Pays My Disability Insurance Premiums?

Does It Matter Who Pays My Disability Insurance Premiums?

The manner in which an insured chooses to pay their disability insurance premiums could have a major impact on their disability claim. The way an insured chooses to pay their premiums — either personally, through employer contributions or a salary allotment plan — not only impacts the taxability of those benefits when they file their claim, but also the law which governs their claim should they one day find that they need to challenge the disability insurance company’s denial of benefits in court. If an employer contributes to the plan, or if the insured chooses to participate in a salary allotment plan where the employer deducts the premiums from their pay, disability insurance companies will attempt to argue that these claims and policies are governed by ERISA, which would preempt any state law causes of action that they could bring, as well as damages and overall financial exposure for the disability insurance company. This is information that the disability insurance company never divulges when the insured first purchases their policy, and often information that the insurance sales agent is often completely unaware of. Also, if premiums are paid with post-tax dollars, then the monthly benefit should not be taxable to the claimant.

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There are 4 comments

  • Dee, as we are not tax professionals we cannot provide any tax advice. As such you will need to consult with a qualified tax professional to determine your liabilities.

    Stephen JessupDec 2, 2016  #4

  • I have had my LTD policy since October of 2013. I completely paid the premiums from post-tax dollars until August of 2014 and at that time the company began paying totally for those premiums. I became disabled in Jan of 2016 after an MVA and am wondering how to consider the disability payments when filing my 2016 taxes.

    Dee B.Nov 30, 2016  #3

  • Nemesio, if your question relates to your tax liabilities you will need to speak to an accountant or other tax professional. Did you file an appeal of the denial?

    Stephen JessupMar 8, 2016  #2

  • Hi MY NAME IS NEMESIO, I RECEIVE A LUMP SUM OF MONEY OVER 40.000 THOUSAND BACK PAY FROM SOCIAL SECURITY LAST OCT. I HAVE BEEN RECEIVING PAYMENTS FROM CIGNA INS. WHEN I GOT THE SSD LUM SUM THEY CUT ME OFF. I HAD TO PAY BACK TO THEM MOST OF MY PAY BACK. AND NOW I’M STUCK WITH OVER 6000.00 DOLARS IN TAXES. I PAID CIGNA PREMIUS FOR ABOUT 38 YEARS. IS THERE ANYTHING YOU CAN DO?

    NEMESIO S.Mar 5, 2016  #1

FAQ

Do you work in my state?

Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

What are your fees?

Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.

In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.

Do I have to come to your office to work with your law firm?

No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via telephone, e-mail, fax, GoToMeeting.com sessions, or Skype. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.

How can I contact you?

When you call us during normal business hours you will immediately speak with a disability attorney. We can be reached at 800-682-8331 or by email. Lawyer and staff must return all client calls same day. Client emails are usually replied to within the same business day and seem to be the preferred and most efficient method of communication for most clients.

Reviews   *****

Curt P.

Before my disability, I was an attorney with a successful energy and telecom practice. I know what it means to provide quality legal service: it entails expertise in the area(s) of law in which the lawyer practices; zealous advocacy on behalf the client, subject always to a professional tone and demeanor; objectivity and considered judgment; responsiveness in real-time; and last but not least, a great staff.

Steven Dell and his firm have demonstrated all of these qualities. They’ve been with me since the beginning, and nothing they have done has ever caused me concern. Quite the opposite. On my behalf, they take care of all communications with the disability insurance carrier and provide me such other expert advice as I have needed over what is now a five-year period. When you no longer have good health, I have found it to be a great relief to have them deal with the insurance company and to know I can rely on their wise counsel.

I also appreciate the firm’s technical sophistication. We communicate chiefly by email, which is not only efficient but less intrusive. When I’m having a particularly bad health day, I can always get to their emails after the storm has passed.

Anyone with claim with their disability insurance carrier would do well to hire Steven and his firm.

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