Disability Income Section 2

Under IRC Section 22, a limited credit may be available for permanently and totally disabled individuals under age 65.

Taxation

Premium Payor Policy Owner Benefits Payable to Premiums Benefits

Sole Proprietor, Partnership, "S" Corp. Sole Proprietor, Partnership, "S" Corp. Sole Proprietor, Partnership, "S" Corp. Not Deductible; IRC Sec. 1372 Tax Free; IRC Sec. 104(a)(3)

Sole Proprietor, Partnership, "S" Corp. Employee Employee Deductible by Employer Reported as Income; IRC Sec. 105(d)

Corporation Employee Employee Deductible by Employer; IRC Sec. 162. Employer's Premium Excluded from Employee's Taxable Income; IRC Sec. 106 Reported as Income; IRC Sec. 105(d)

Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.

Businesses should consult with their tax and legal advisors when establishing a formal plan.

			*Taxation*
*Premium Payor*	*Policy Owner*	*Benefits Payable to*	*Premiums*	*Benefits*
Sole Proprietor, Partnership, "S" Corp.	Sole Proprietor, Partnership, "S" Corp.	Sole Proprietor, Partnership, "S" Corp.	Not Deductible; IRC Sec. 1372	Tax Free; IRC Sec. 104(a)(3)
Sole Proprietor, Partnership, "S" Corp.	Employee	Employee	Deductible by Employer	Reported as Income; IRC Sec. 105(d)
Corporation	Employee	Employee	Deductible by Employer; IRC Sec. 162. Employer's Premium Excluded from Employee's Taxable Income; IRC Sec. 106	Reported as Income; IRC Sec. 105(d)