Lorant was the beneficiary of a spousal life insurance policy. Lorant had paid $20,000 in premiums on the policy. Lorant collected $50,000 on the policy when the spouse died from a terminal illness. Because it took several months to process the claim, the insurance company paid Lorant $52,000, the face amount of the policy plus $2,000 interest. Lorant is required to recognize income from the above transactions. True False