My husband receives a $200 monthly hardship benefit from his volunteer fire company relief association. He will receive this same monthly amount for ten years. You must be at least 65 years old and eligible for the life insurance death benefit in order to qualify. Once he dies, his beneficiary will need to repay the $24,000 he received over those ten years to the Relief Association out of his $100,000 death benefit. Should he be receiving a 1099-MISC form each year to report the $2400 annual benefit as Other Income (box 3). It seems to me if you have to repay the money, it is a loan and not income.
