Whether you choose expense or income account, it will either reduce the expense line or will increase the income line but the net result is — will increase net income at the bottom line.
Depending on the insurance check amount, you've two options: 1) Use the account to pay for the insurance, usually insurance expense account. 2) Use the "Other Income" account type (Detail Type = Other miscellaneous income). It will show at the bottom of the P&L after operating income line.
You may also want to consult with your Accountant for best advice.