1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    Life Insurance can be paid out in a number of ways.  You can receive the money in a lump sum or you can take the money in equal installments over a period of time.  I usually recommend taking the money in a lump sum and, if not needed right away, investing the money in a safe vehicle, such as an indexed annuity.  It all depends on the circumstances.  A good agent will help you sort through your options.
    Answered on April 30, 2013
  2. 63333 POINTS
    Peggy MacePRO
    Most of the U.S.
    Life Insurance is paid out to the beneficiary when the Insured person dies. It can be paid out in a lump sum, or it can be paid out in regular payments. If taken out in payments, the beneficiary is paid interest on the part of the death benefit that is kept by the life insurance company, until it is all paid out. The life insurance company will often work with the beneficiary in even more ways to ensure that the death benefit is paid out in manner that is most beneficial to them.
    Answered on September 14, 2013
  3. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Life insurance death benefit claims are paid directly to the beneficiaries of a life policy, generally tax free. The payout arrangement is usually a lump sum check. Most beneficiaries pay down their debts and/or make contributions to college funds for their children and grandchildren. Some proceeds go to the beneficiary's non-profit charities.
    Answered on September 14, 2013
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