2-16 (Algorithmic) Life Insurance (LO 2.8) Greg died on July 1, 2020, and left Lea, his wife, a $72,500 life insurance policy which she elects to receive at $7,250 per year plus interest for 5 years. In the current year, Lea receives $9,063. How much should Lea include in her gross income? 2,250 x Feedback Check My Work Generally life insurance proceeds are excluded from gross income based on the premise that it would be inappropriate in a time of need to tax the proceeds from a life insurance policy