There are 2 reasons why I believe that these payments would be non-taxable.
First, generally payments are non-taxable because the policy was paid for with after-tax dollars. IOWs, the tax has already been paid. Further taxation would be double taxation no matter where the payment goes.
Secondly, this is a property settlement and not spousal support.
These 2 factors are unrelated but both would imply that the payment would be non-taxable.
Thirdly, is there a child involved and does the disabled party collect social security disability as well as the disability insurance? If so, the ex-spouse and child(ren) would be entitled to SSDI too which should cause CS to be adjusted. Any payment from SSDI would not be taxable either. It would also not be deducted from whatever the disabled party receives.