How Is Life Insurance Paid Out?

A Life Insurance death benefit is paid out to the beneficiary of the life insurance policy when the Insured person dies.

The death benefit can be paid out in a lump sum, or it can be paid out in regular payments, for example, monthly installments sent direct to your checking or savings account account.

If taken out in regular payments, the beneficiary is paid interest on the part of the death benefit that is kept by the life insurance company, until the death benefit is fully paid out to the beneficiary.

The life insurance company will often work with the beneficiary in even more ways to ensure that the death benefit is paid out in a manner that is most beneficial to the beneficiary.

You can review your life insurance policy of the insured who passed away to find out your options for payment. Also, you can contact the life insure agent or life insurance company to inquire about payment options for the death benefit from the life insurance plan.