Ch 6 Strategy: Maximize the Benefits of a Section 125 Plan According to the textbook, a Section 125 Plan allows employees to chose between cash or nontaxable benefits offered by their employers. Some of these benefits can include the following: life insurance, health insurance, long-term disability insurance, child and dependent care costs, group legal services, and medical expense reimbursement. In order to fund these benefits, pretax dollars from employee salary reduction agreements or employer provided credits are contributed; these contributions are not subject to FICA withholdings. Because of the complexity and number of employees needed to make a Section 125 Plan beneficial for a company, they are typically only found in companies that are considered to be "mid- to large-sized". Self-employed individuals, and other small start-up type firms, have access to other tax benefits regarding health and retirement related coverage. Ch 7: Recommend an Own-Occupation Policy One of the most advantageous types of disability insurance is own-occupation disability coverage which provides benefits if the injury/sickness that the individual is currently suffering from impacts their ability to return to their own occupation. In other words, if the client is no longer able to perform the specific duties that their own occupation entails, then they will receive their disability benefits. This is more favorable than any-occupation disability coverage because under this plan, an individual may not be able to perform his own job but is able to find work in another career field. Create a 100 word response