Are Benefits Taxed?

For most people the claim proceeds from a Critical Illness Insurance contract are paid tax free.  The payment is received as a tax free lump sum and they are free to spend the proceeds however they chose.

The monies could be used to reduce debt, such as a mortgage or credit cards, or may be used to make alterations to the home to aid mobility.  Some people use the proceeds to buy a car or go on holiday, or simply leave the money in the bank.  The choice is yours.