• 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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Comments (4)

  • 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 Jessup Dec 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 Jessup Mar 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.

Dell & Schaefer Client Reviews   *****

Dennis W. (Florida)

If it weren’t for Attorney Rachel Alters, I would have probably been living on the streets, living in a cardboard box, or maybe not even be here today. I was denied numerous times by my own Short Term and Long Term Insurance Company that I had paid years of premiums to. I figured that since it was my Insurance Company that I wouldn’t have any problems with submitting a claim and getting it approved. Was I wrong… Then the claims adjusters started playing head games with me each time I contact them or mailed them any additional information. Nothing seemed to matter. Eventually I would always get a rejection/denial letter in the mail. I was so irritated and frustrated as I also had to deal with my illness and go without any income for almost 2 years.

I even researched and contacted numerous local lawyers. They would either state that they wouldn’t take the case, take the case and either do nothing with the file or at a later date contact me to inform that they didn’t practice in that particular area. This included all the Attorneys and Firms that you see advertising on the television, including the Large Law Firms. Theses firms actually didn’t have the expertise nor the experience in the area of Traumatic Brain Injury, as it was a fairly new unknown area. This was prior to the publicizing of Traumatic Brain Injuries regarding NFL Football Players committing suicide (retired or ex-football players) as well as Professional Boxers. Now all of the sudden those same Attorneys and Large Law Firms are advertising for cases with Traumatic Brain Injuries and Insurance Disability Claims like they dealt with them in the past, which is definitely not the case.

I was stuck between a rock and a hard place. So I went researching on the internet and found Dell & Schaefer and watched their videos and so on. I contacted their company and was given an appointment with Attorney, Rachel Alters. She went to bat for me. Fought the Giant (Insurance Company) and won, whereas all these other Attorneys and Large Firms wouldn’t even touch my case. Attorney, Rachel Alters was even willing the take the case to court. She went to battle against a Large Insurance Company and won without going to court!

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