So, it’s time for you to receive your life insurance payout. This means you will need to know how these payouts work and how you should manage them. Allow us to help you understand this process in today’s edition of Life Insurance Thursday.
For starters, you should learn about your payout options. This will depend on what type of policy is in effect. You may have many options to choose from, or you may have just one or two options. Typically, people choose the lump-sum payout which means you will receive the total value of the policy in one payment. Another option is the life income, which is a fixed monthly payout for the rest of your life.
Once you decide which type of payout option you would like and prioritize your immediate financial needs. Make sure you budget for burial costs upon the death of the life insurance policy owner. If you are not financially able to pay these expenses, you can use the life insurance proceeds.
Now, consider investing your money into a checking, savings, or money market account that will accumulate interest.
Always, if you are concerned about what to do with your life insurance payouts, consult with a professional. A certified financial planner can advise you on what the best financial options for your situation.