Life Insurance Proceeds. Don is the beneficiary of a $50,000 insurance policy on the life of his mother Anna. To date, Anna has paid premiums of $16,000. What amount of gross income must he reported in each of the following cases? Anna elects to cancel the policy and receives $20,000, the cash surrender value of the policy. Anna dies and Don receives the face amount of the policy, $50,000. Anna dies and Don elects to receive SI5,000 per year for four years