Life Insurance
The amount of life insurance in an estate is often more money than most persons are accustomed to handling at one time. It is important to remember that the life insurance proceeds may be received in a number of ways and that income may be more important than a lump sum. Following are the common settlement options:
Interest only:
The principal remains with the insurance company and interest is paid periodically. Provisions can be made for withdrawal of money at any time.
Life Income or Annuity:
The company will pay a stipulated amount of money on set dates for the lifetime of the beneficiary.
Fixed installments:
Proceeds are paid according to the needs of the beneficiary in agreed amounts over an agreed period of time.
If you have no experience with financial matters, it is wise to get advice from professionals. Be sure to deal only with reputable, well established firms or individual advisors. Your bank manager, lawyer or a trust company may be able to help or refer you to other advisors if the estate is unusually complex.
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