If you own, or are considering the purchase of a life insurance policy, you may be wondering how death benefits are paid out on life insurance.
Usually, when the insured person dies, the life insurance death benefit goes directly to the beneficiary or beneficiaries of the policy, free of federal income tax.
The beneficiary may choose from one of several options for receiving the death benefit payout, which may include: one lump sum, an annuity payout, or checks which can be used to draw from an account with the payment in it.
Learn more about how life insurance death benefits are paid out.
Usually, when the insured person dies, the life insurance death benefit goes directly to the beneficiary or beneficiaries of the policy, free of federal income tax.
The beneficiary may choose from one of several options for receiving the death benefit payout, which may include: one lump sum, an annuity payout, or checks which can be used to draw from an account with the payment in it.
Learn more about how life insurance death benefits are paid out.
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