56 / Are there any exceptions to the general rule of non-includability for accelerated death benefits?

There is one exception to this general rule of non-includability for accelerated death benefits. Accelerated death benefits paid to (1) any taxpayer other than the insured if (2) the taxpayer has an insurable interest in the life of the insured because the insured is a director, officer, or employee of the taxpayer or if the insured is financially interested in any trade or business of the taxpayer, are exceptions from the special treatment afforded to payment of certain accelerated death benefits (see Q 54 and Q 55).¹