NLIC.org

Carl Said:

Insurance Premium Not Guaranteed?

We Answered:

Do you mean that the premium can be increased by the company? Then the answere is yes. Critical illness fallls under the category of health insurance and premiums can be increased on a class basis, which means everyone with the same policy gets the same increase. They can not single you out for an increase as an individual.

Ben Said:

Is amount received from Critical Insurance taxable?

We Answered:

Is it a standalone policy or is it part of your benefits package? Some benefits packages are taxable, some aren't. If it's a stand alone policy it's probalby not taxable.

Not sure if it's different in the USA, but in Canada Critical Illness Insurance benefits are tax free. MOST tax laws surrounding insurances are the same in Canada and the USA, so I would assume it's the same, but check with your advisor to make sure.