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How to make the most of employee benefits

Disability insurance
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Many companies offer private short-term and long-term disability insurance that provides partial replacement of your income if you are too ill or injured to work. If you pay the premiums on your disability insurance with your own after-tax money, then any benefits you might receive would come to you tax-free.

On the other hand, if your employer pays the disability insurance premiums, your benefits would be subject to income tax. If you feel pretty sure you'll never need to draw on disability insurance, let your company pay the premium. But if you're concerned that you might use disability insurance someday, it would be reassuring to know that the payments you receive are yours to keep, without the burden of taxes, Farley says. Your own comfort with risk may be the deciding factor here.


 

 

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