Income from insurance - Income Protection

A member is receiving income from an insurance policy for Income Protection.
This income doesn’t get taxed as it is deducted from the profit for tax calculations.

So when the member withdrawals funds, what does it come from taxed or untaxed and how is this know?
Also they have a permanent incapacity, so the withdrawal of lump sums is treated different than normal.
How does SF360 calculate tax?
He is 56, and his preservation age is 58.
He want to withdrawal part of his super as a lump sum

You can only withdraw your super as either a super income stream or a lump sum or both.

In this case all withdrawals from a accumulation account are lump sum payments, it does not matter how big or small the amount is.