It depends on the type of life insurance policy you have, whether it is taxable or not.
In general, term life insurance is tax free. Whole life combines term life with investments, so it's partially taxable.
But your use of the word "annuitized" implies this is an annuity and not a life insurance policy.
Annuities aren't life insurance policies, but are often sold by life insurance companies. An annuity is an investment vehicle designed to provide lifetime income. When money comes out, all of the earnings in the account are taxable and the original investment isn't taxed.
You will need to contact the company that gave you the 1099-R if you want a more detailed explanation of how the taxable amount was determined.
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