Proceeds from selling life insurance policy's may or may not be taxable. see link. https://www.irs.gov/pub/irs-drop/rr-20-05.pdf.
https://www.irs.gov/pub/irs-drop/rr-09-14.pdf.
Here is a link from The Tax Advisor which may be easer to read.
https://www.thetaxadviser.com/issues/2009/aug/tworecentrevenuerulingsclarifytaxtreatmentoflifesettle...
