Zack was the beneficiary of a life insurance policy on his wife.Zack had paid $20,000 in premiums on the policy.He collected $50,000 on the policy when his wife died from a terminal illness.Because it took several months to process the claim,the insurance company paid Zack $52,000,the face amount of the policy plus $2,000 interest.Zack is not required to recognize any income from the above transactions.

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The Answer of Zack was the beneficiary of a life insurance policy on his wife.Zack had paid $20,000 in premiums on the policy.He collected $50,000 on the policy when his wife died from a terminal illness.Because it took several months to process the claim,the insurance company paid Zack $52,000,the face amount of the policy plus $2,000 interest.Zack is not required to recognize any income from the above transactions.

Zack Was the Beneficiary of a Life Insurance Policy on His