Arturo buys an individual disability income policy. What are the tax consequences?

Arturo buys an individual disability income policy. What are the tax consequences?




a. Premiums are not taxed.

b. Premiums and benefits are tax-free.

c. Benefits are taxable.

d. Premiums are paid with after-tax dollars.



Answer: d. Premiums are paid with after-tax dollars.

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