It depends. Usually this type of insurance is purchased with after-tax funds which are not deductible on your return. When this is the case, benefits received are not taxable. However, if your employer has a plan that pays for this insurance pre-tax, then any benefit claims paid will be included in taxable income.
Such payments will be included as "Other Income" on line 21. This FAQ gives additional information on this subject: https://ttlc.intuit.com/replies/3300312
{Edited 02/24/18: 21:05 PST}
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