zack was the beneficiary of a life insurance policy on his deceased wife. zack had paid $20,000 in premiums on the policy. he collected $50,000 on the policy when his wife died from a terminal illness. because it took several months to process the claim, the insurance company paid zack $53,000, the face amount of the policy plus $3,000 interest. zack must include $23,000 in his gross income.