Is Disability Insurance Tax Free? 
In Canada , if you personally pay the premium of an individual or group disability insurance then the benefit is tax free . If the company pays the premiums then the disability benefit would be taxable . In some corporate situations it is possible to structure individual policies so that the company deducts the premium and it is not considered a taxable benefit to the employee . However , if the employee is disabled the benefit are taxable . To offset the disability benefit being the amount you are allowed to qualify for based on your income is increased . If you have further questions , or feel that I could be of assistance , please do not hesitate to contact me . If you would like to work with a local life insurance broker , you could start with a Google search . For example , if you search for : life insurance broker Halifax or life insurance agent Halifax , my name , along with several others , will come up . You can use the same method to find a life insurance broker in your community . 