You may have to pay tax on the benefits you receive from your insurer. This depends on your situation. If your premium, or part of your premium, was paid by your employer, union or association, you will pay taxes on the money received during your disability. If you have any doubts, your employer should be able to confirm how premiums are paid. On the other hand, if you have an individual policy and you have paid all your premiums yourself, you do not have to pay taxes on the money received during your period of disability.