Rachel an audit manager at an accounting firm has a disability insurance policy with an own occupational definition of disability. She suffered brain damage in a skiing accident and can no longer perform her previous duties. However, she was able to secure a new job as a television news anchor. Will she still be able to receive disability benefits from her policy?

 

Continuing with Rachel, if we assume that she did receive disability benefits, would they be taxable if Rachel purchased the policy and paid the premiums herself? 

 

If we assume that she did receive benefits, would they be taxable if the policy was obtained through Marisa's employer, who paid the premiums and did not include the cost of coverage in her gross income?