A life-insurance policy cannot be rolled over to a traditional IRA. Traditional IRAs are not permitted to hold life insurance policies as investments. It might be possible to have had a life insurance policy within an employer plan, cashed out that policy, then rolled over the cash to a traditional IRA, but this seems unlikely.
Did you cash out a life-insurance policy and then deposit the cash into a traditional IRA? This would constitute an ordinary contribution to the traditional IRA independent of the cashing out of the life insurance policy. The tax consequences of cashing out a life insurance policy are unaffected by what you subsequently do with the cash.
