Rebecca is the beneficiary of a $500,000 insurance policy on her husband's life.She elects to receive $52,000 per year for 10 years rather than receive the entire amount in a lump sum.Of the amount received each year

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Rebecca receives $52,000 per year for 10 years, totaling $520,000. The original insurance amount is $500,000, so the extra $20,000 is considered interest and is taxable. Therefore, $2,000 of the $52,000 received each year is taxable income.

Rebecca Is the Beneficiary of a $500,000 Insurance Policy on Her