An insurance policy is not subject to an RMD.
What types of retirement plans require minimum distributions?
The RMD rules apply to all employer-sponsored retirement plans, including
profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs.
The RMD rules also apply to Roth 401(k) accounts. However, the RMD rules do not apply to Roth IRAs while the owner is alive.
See this IRS FAQ webpage for more information regarding RMDs.
See this IRS FAQ webpage for more information regarding the taxability of distributions from life insurance policies. Generally, you would pay tax on the part of any distribution from the insurance policy that exceeds the premium paid. The issuer should provide you with the appropriate tax form for the year of the payment.
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