If you are the beneficiary of a loved one’s life insurance, you may find yourself in a situation where you have to choose one of the payment options. Do you want to get your life insurance in a lump sum or do you want to get it separately? Do you need to think about retirement, or will paying a flat monthly payment interfere with your long-term financial goals?
The question of how you want to get life insurance may seem like another difficult choice to make at a time when you are already under stress. You may already be busy preparing your insurance application or death certificate (or a copy of your death certificate), but you don’t need to worry. We’ve written a guide to help you understand the different payment options and how life insurance pays.
It also provides the necessary information to help you decide if you need to determine the best payment option for you.
What are the payment options for life insurance?
There are two ways to pay for life insurance. You can receive life insurance payments in a lump sum or in multiple installments. In some cases, these premiums are provided in the form of annuities, which are a way of investing life insurance payments into interest-bearing accounts and paying fixed payments each month. An annuity can increase the cost of your death insurance, but many people prefer the freedom and flexibility afforded by temporary life insurance payments.
What life insurance payment options does Haven Life offer?
Affordable term life insurance Have Life offers a lump-sum, tax-free payout. According to Matt Myers, head of marketing at Haven Life, the average life insurance payout is about $618,000.
How long does it take to get life insurance? With Haven Life, beneficiaries typically receive a payout within 24 hours of submitting the appropriate life insurance application form. If the beneficiary’s contacts are inadequate, the lump sum life insurance payment may be delayed, so the insured is advised to extend the life insurance. For example, if the life insurance beneficiary has come of age or is moving to another country, let your life insurance provider know.
What are the most popular life insurance payment options?
Many people choose a lump sum life insurance payment, but that doesn’t make a lump sum payment the best choice for you and your family. Before deciding on a life insurance payment, ask yourself how you plan to use the payment and which of the lump sums and installments best fit your financial goals.
What should I consider before choosing a life insurance payout option?
If you want to choose a life insurance payout option, take time to think about your short-term and long-term financial needs. For example, if you have a lot of credit card debt, a lump sum life insurance payout can help you get out of debt.
If you want to use life insurance to cover your mortgage, child care or tuition support, retirement or installment payments, you can put money in your account when you need it. In addition, installment and annuity plans allow you to spend more than you expected and keep you from falling behind when it’s time to pay.
Familiarize yourself with a basic list of financial goals that includes everything from retirement planning to vacation planning. Then ask yourself how life insurance payment options can help you meet those goals. From there, you’ll learn what life insurance payment options work best for you.