Taxability of Surrendered Cash Value Life Insurance Policy

I have a question regarding the (federal income) taxability of a surrendered (at maturity) cash value life insurance policy (purchased at birth by a relative many years ago).

The life insurance company said: "The insured has reached the policy endowment age and we will be sending you a check ... under separate cover."

The check was for the policy's "Guaranteed Maturity Value" "Plus Current Dividend Value".

It was my understanding that the amount by which that total exceeds the "policy basis" would be taxable. And that the "policy basis" is the total of premiums paid over the years.

But although that total does exceed the "policy basis", the insurance company said that "There was no taxable gain". [They also said "The policy was not a modified endowment contract (MEC)".]

Am I missing or misunderstanding something?