Received a 1099-R due to cancelling Group Life Insurance Policy, not retirement related

[scm84]

I received a 1099-R because my employer changed our GUL provider in 2019 and we had the option of cancelling our old policy or maintaining it separately.  I cancelled mine and received a disbursement of a few hundred dollars I assume because it was some kind of whole life policy.  I'm surprised that falls under a 1099-R because it has nothing to do with retirement.  The options in TurboTax that I see don't describe this.  Would this fall under an annuity distribution?  The distribution code is 7.  It just feels odd to answer questions about retirement income so I'm trying to understand the connection.  Thank you.

[ColeenD3 · Accepted solution]

Yes, it is reported on Form 1099-R. On the screen that asks what type it is, mark the first choice as shown.