Jane has a life insurance policy with a cash surrender value of $200,000 on which she has paid $30,000 in premiums. She has decided to cash in the policy. Discuss the tax consequences if Jane is chronically ill and decides to use the proceeds to take a cruise around the world.

	a.	She can exclude all of the gain in the policy ($200,000 less $30,000 of premiums paid) from gross income
	b.	She does not have to include anything in gross income
	c.	She must include all $200,000 received in gross income
	d.	She must include all of the gain ($170,000) in gross income