Norma, who is 62 years old, is the beneficiary of a $150,000 life insurance policy. What amount of the insurance proceeds is taxable under each of the following scenarios? Note: any amounts above the $150,000 face value of the policy are considered interest (this applies to insurance proceeds paid out over time.)
She receives the $150,000 as a lump-sum payment. [ Select ] ["$75,000", "$15,000", "$0", "$150,000"]
She received the proceeds at a rate of $2,600 per month for 6 years. [ Select ] ["$2,600", "$0", "$37,200", "$150,000"]
She receives the proceeds in monthly payments of $600 over her remaining live expectancy (assume she is expected to live 23 more years). [ Select ] ["$0", "$150,000", "$15,600", "$165,600"]