Cashing in Insurance Policy

Nova Scotia tax, In easy terms, please explain how I figure if I need to pay tax on insurance that I cashed in.

Over the years i paid in premiums 1000.00 per year for approx 20 years. Some years they took the payment out because it was a tough year and couldn't pay the premium. I generally got an annual dividend of approx 500.00 a year.

This year I closed it out (had to) by getting the balance left of 14k. I had taken 3k as a loan the year before but didn't pay it back. The policy itself was for 100,000.00 So I have paid in approx 20,000 and had dividends of approx
5000.00 (didn't get 500.00 for the first few years) I have plenty of capital gains exemption left, can't I use that.

Also should not the Insurance Company have taken out the tax if indeed, I am required to pay some.
is it taxable the same as income. Thanks a lot

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