Exception for amounts paid to insured’s heirs
Any amount received by reason of the death of an insured to the extent—
(i)#
the amount is paid to a member of the family (within the meaning of section 267(c)(4)) of the insured, any individual who is the designated beneficiary of the insured under the contract (other than the applicable policyholder), a trust established for the benefit of any such member of the family or designated beneficiary, or the estate of the insured, or
(ii)#
the amount is used to purchase an equity (or capital or profits) interest in the applicable policyholder from any person described in clause (i).