MTHEL131 Lecture Notes - Dental Insurance, Disability Insurance, Prescription Drug
22 Nov 2013
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Continues to pay even if you find another occupation within your specialty. Ex. pays if brain surgeon develops twitch: regular occupation. Pays if unable to perform essential duties of your own occupation. Continues to pay even if you find another occupation within your specialty but the amount is reduced, depending on how much your new job pays. Ex. brain surgeon develops twitch, becomes teacher. The insurance company would pay agreed upon benefit amount, less the amount of your teaching salary: any occupation. Pays if unable to perform essential duties of your own occupation or of any other occupation (within your specialty) Ex. doesn"t pay if brain surgeon develops twitch because he can do other things such as consultations, research, etc. If you pay the premiums yourself, the benefit is tax-free. If someone else pays your premiums (i. e. employer), the benefit is taxable. Even if employer only paid a portion of the premium, the entire benefit is taxable.
