FlyingOctopus wrote: ↑Actually, it's a much better idea that the employer doesn't pay the LTD premiums.
If they are paid 100% by the employee the benefits aren't taxable. If any part of the premiums are paid by the employer the benefits are taxable.
And since LTD benefits are usually around 50-60% of your salary, if you need to be on them for a while (as I did) it much better that they aren't taxable. If I was receiving only to 50-60% of my salary and had to pay tax on this, I would have had serious financial difficulties on top of the serious medical condition I was already dealing with.
My company is switching to employee paid LTD premiums for exactly the reason Flying Octopus describes. That non-taxable benefit sounds great but, as with all insurance policies, I'm skeptical. The devil is in the details, the fine print? How difficult is it to make a claim? FlyingOctopus, any insight into this?