Disability insurance provides tax-free monthly income if an individual is unable to work due to a serious injury or illness. This type of insurance is suitable for you if you are under age 60 with employment income and have insufficient liquid assets to sustain a loss of income due to a disabling injury or sickness, especially for small business owners and sole proprietorship. This can be write off as business expense.
Many employer group plans have a disability component, however, they often have conditions that limit the amount of time you can receive benefits. And if you were to leave your employer you would lose the coverage. Your personal disability insurance will protect you for many years and will not be altered if your occupation changes or if your salary decreases. When premiums are paid with your own after-tax money, the benefits are tax-free. Disability Insurance provides protection for your business in the event that you are disabled.