| Product / Premium Source | Premium Deductible? | Benefit Taxable? |
|---|---|---|
| Individual disability (personal, after-tax premium) | No | No |
| Group LTD, employer pays 100% | No (to employee) | Yes |
| Group LTD, employee pays 100% (after-tax) | No | No |
| Group LTD, split (employer + employee pre-tax) | No | Yes |
| Critical illness, individual | No | No |
| BOE, self-employed | Yes (business expense) | Yes (business income) |
| EI sickness benefits | n/a | Yes |
| CPP disability benefits | n/a | Yes |
| Workers' compensation | n/a | No |
Core rule: if after-tax dollars funded the premium, the benefit is tax-free. If pre-tax or employer dollars funded the premium, the benefit is taxable.