My wife has received a Trauma/Living Benefit payout due to her cancer. We have being paying the premiums from 1997. Do we have to pay tax on this payout?
Good Evening,
No this is not income protection. This is a living benefit policy that is paid out for a trauma such as a cancerous tumour, a double/triple bypass operation, a stroke etc. to pay for medical expenses, hardship etc. It was an additional extra to a Life Insurance Policy. One website we looked at said that living benefit policies are tax free. We just want this confirmed or denied. We are receiving a lump sum payment from our Insurer.
Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.
At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.
I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.
If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.
I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.