I have opted to receive a litigation cash settlement from Genworth Long Term Care but on the condition that my policy coverage (benefits) would be proportionately reduced. So question is, is my cash settlement payment taxable?

[Gary W2]

I have opted to receive a cash payment as part of a litigation settlement of a class action Genworth long term care suit but in so doing I agreed to have my policy benefits proportionately reduced.  Will my cash payment be taxable?

[Anonymous_]

@Mike9241