Karen is in ill health and has been hospitalized repeatedly over the last several years. She purchases a hospital indemnity insurance policy from a private insurance broker that pays her $1,000 per day that she in the hospital up to 30 days per year. Karen pays a premium of $200 per month for the policy for the entire year. Unfortunately, Karen has a bad year health-wise and collects $20,000 in benefits under the policy. Is Karen’s income from the policy includible in her federal gross income?