How are premiums for an individually-owned disability income policy treated for tax purposes?

Premiums for an individually-owned disability income policy are not tax-deductible at all. When an individual pays premiums for this kind of policy, they use after-tax dollars, meaning that those payments do not provide any upfront tax benefits. This aspect is important for policyholders to understand since, even though they do not receive any tax deduction for the premiums, any benefits received from the policy during a period of disability are typically received tax-free. This is beneficial for individuals who rely on this income during times of financial need due to disability, as they can count on the full benefit amount without tax implications.