Except in the case of qualifying accelerated death benenfits,if a life insurance policy is sold or surrendered for a lump sum before the death of the insured,the amount received is taxable to the extent it exceeds the premiums paid.

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This is true as per the tax laws in the United States. If a life insurance policy is sold or surrendered for a lump sum before the insured person's death, the amount received will be taxable to the extent that it exceeds the premiums paid. However, there are some exceptions to this rule, such as qualifying accelerated death benefits.

Except in the Case of Qualifying Accelerated Death Benenfits,if a Life