Who Pays For Disability Insurance? 
It depends on which type of disability insurance you have . If it is a group disability plan then your employer can pay any or all of the premium . If it is an individual disability policy then you would pay the premiums . If you pay the premium and become disabled your benefits are tax free because you paid premiums with after tax dollars . On group disability where your employer pays , he deducts the tax and your benefits would be taxable as income . 