For what it is worth, about 3 or 4 years or so ago I saw this: a life insurance policy that had a cash account attached to it. Part of the premium payments went towards life insurance and part went into this cash account that paid a guaranteed interest rate and the interest was deferred each year. When the life insurance policy was cancelled, the balance of this cash account was sent and no 1099 was issued. The Life Insurance Company, which was a major company, said No 1099-r was issued , because the amount was not taxable ,since the total of all the premiums paid was more than the cash balance payout from the balance of this cash account. Hopefully my pea brain memory got this correctly . Just my opinion.