Is Critical Illness Insurance payouts taxed?
I had a $25,000 Critical Illness insurance policy (I live in North Carolina). I suffered a heart attack several weeks back, which qualifies me for it. I was wondering whether I would receive a $25k lump sum payout, or whether taxes would be deducted from it? Would that $25k need to be disclosed as income in any way?This policy is paid for by me, not my employer.Let me clarify. The premium is deducted from my paycheck and is marked as"excluded from federal taxes", but I pay the full premium. My employer doesnt pay any part of it.
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