Life Insurance & Net Worth Question

Hi,
I'm helping my friend fill out the EVRs just sent in March for Initial Year & 2011 (1 Combined Sheet) & a separate one for 2012; they're still working out her benefit level. She received a life insurance payment from her deceased husband that was excluded from her income by the VA in her initial award letter. On the EVR, I assume I need to include it again on her "all other income" for the Initial Year in Section 7 and explain it was one-time and previously excluded by the VA. Then I assume I need to include what remains of it in today's 'net worth' total. Do I need to explain on the 'net worth' line this includes the insurance money?

Thanks for your help!