David,
Thank you for the response! I spoke with the insurance company about the 1099-R I received from them but, they don't provide detailed breakdowns (i.e. cost of insurance) and they don't send annual statements having detailed information. The initial insurance agreement only provides the "total" monthly premium and terms.
Box 2a (Taxable amount) of the 1099-R is blank, but Box 1 (Gross distribution) does have a value in it.
Box 2b (Taxable amount) of the 1099-R, Total distribution box is marked 'X', while Taxable amount not determined is blank.
After computing the premiums paid, and comparing to Box 1's entry, Box 1 is equal to about 50% of the premiums I paid over the period I had the policy. In other words, << less than total premium payments.
That said, it appears the distribution is not taxable.
Lastly, when I spoke with the "other " insurance company, where the payout was much less, they told me they don't send a 1099, if the amount is less than $3,000 or $5,000; don't remember exactly which value.
