I have a claim on my income protection policy and am paid monthly benefits. I went to mediation and insurer rejected my claim for increase in monthly benefits based on my interpretation of contract. Insurer denied any validity to my claim for more benefits. They agreed to a lump sum settlement where they bought the rights for any future dispute. So there was no money received that can be construed as income, for past or future. I remain on same income paid by the insurer as before the dispute. My understanding is that if the lump sum payment is not being paid in lieu of lost income but instead is being paid to prevent me from pursuing any further legal action against the insurer, that this allows the lump sum payment to be not be taxable. My question is whether this lump sum settlement is likely to be taxable?
NSW income protection lump sum
- Thread starter ROBBIE12
- Start date
You will need to get specific legal advice for your situation. Not something easily answered online.
I'm not a lawyer, but from what I've heard, lump sum settlements in situations like these can be pretty complex when it comes to tax. Consult with a tax professional or legal expert who can provide specific advice to your case. And if you're tight on budget, try these legit apps that pay instantly to cash app. I hope it helps!
