I'm giving you information only.
Per the federal tax code (US). If your company pays for your coverage, it is taxable to you upon receipt as ordinary income.
If you pay for your coverage, it is not taxable (it is an insurance payout) and the cost of the premium is not deductible either.
Why would you want to pay taxes now on something you might never receive?
Read the policy CAREFULLY. Look for the claw back provision and look for the Social Security Administration determination of disability.
My brother had ST and LT through his company. Company paid for ST. ST coverage is usually six months or less. The payout was taxable to him as ordinary income (ST Only).
He paid the LT coverage. The payout was NOT taxable to him. BUT there were two stand out provisions:
1. If the Social Security Administration deemed he was NOT eligible for long term disability, his private policy would NOT pay.
2. For every dollar received from SSA, his policy would "claw back" one dollar. He had been paying for $3,000 per month coverage but because SSA paid him $1,700, his private policy only covered the additional $1,300. So he was paying a premium based on $3,000 to only receive $1,300.
Caveat Emptor.