When a life insurance policy is surrendered for a cash value the taxable proceeds are determined by deducting from the cash amount received the sum of all the premiums paid for the life of the policy. I your case, as it is a foreign life insurance policy, it is possible that premiums were paid in a currency other than US dollars. If that is the case do the above suggested calculation in the foreign currency and convert the resulting taxable amount to US dollars using the exchange rate on the date you constructively received the proceeds.
Where to report the taxable amount? Form 1040 lines 7 thru 20a do not appear to have any place to report such taxable income. Line 21, "other income" may offer a place to report the taxable income. There are several categories available to choose from there. Provide a good description of the source of the income and keep a good copy of your calculation should there be a future need to correspond with the IRS concerning this issue.
Another questioner seems to indicate that the taxable amount of a surrendered life insurance policy is treated as pension proceeds by TurboTax. If that is so then line 16a of Form 1040 may be the place such proceeds are reported.