Investing life insurance proceeds largely depends on the needs of the surviving spouse/other family members. It is important to allow yourself to adjust to the uncertainty. If you die first, your spouse invests the proceeds. 4279 Roswell Road Suite 208-201Atlanta, GA 30342. Here are some strategies to help you chose the right wealth manager for you and your family. Suggest working with an advisor @massmutual or @Prudential, "They should invest the only way one can invest: based on their values and goals.". Simply Insurance doesn't underwrite any insurance policy described on this website. If the survivor is younger, say under 75, they might want to choose either a balance or a stock fund. Required fields are marked. Instead, you should look into robo advisors such as Wealthfront and Betterment. Given that losing a spouse has such a tremendous impact on your life, emotions, and financial situation, I would recommend waiting a period of time before making any big decisions. Anyone can start a claim. Your course of action will highly depend on the surviving spouse's current living situation. Upon the death of the life insurance owner, beneficiaries must inform the event to the insurance company. For others, the insurance benefit is to cover lost cash flow into the household for a certain period of time. It is intended to provide help to your loved ones when they can't rely on your salary or income any longer. 1 Million Dollar Life Insurance With No Exam, How to Get Cheap Renters Insurance Online. I’ve listed all of them below and guess what... your getting this all without me having to collect your personal information. In cases like this, the proceeds would need to be more conservatively invested. The experts all seem to agree that when you lose someone, you need to get over your grief and not invest in anything for a while. Before you decide to pay off your mortgage, or go on a shopping spree, you'll want to make sure your foundation is in check. It must become "your money" so that if it's lost you feel a sense of loss. They should set aside travel or other wellness related money to help them heal from their loss and if they aspire to greater knowledge or education, they should invest in themselves by enrolling in courses that give them a sense of meaning and purpose. It all depends on the age of the surviving spouse. However, this is usually the situation when we lose a spouse that has thought enough of us to figure out how much life insurance they needed, get  life insurance quotes or some term life insurance quotes with no medical exam and buy life insurance online, or an accidental death policy. Do not rush into an any investment decisions. Don't be in a rush, but look at your needs - both short and long-term. He would also have to consider the future well-being of his kids (if they have any). That’s essentially what Lupe, an Interest.com reader, asked in a comment she left on a recent story. Creating a diversified and tax-efficient portfolio using an appropriate risk tolerance and time horizon for each goal should be the starting point. "In the wake of an extreme emotional blow, minimizing the stress of making complicated financial decisions can be priceless". Diversify your assets with a robo advisor. If the lump sum is meant to be invested over the long term, I would highly suggest working with a fee-only financial planner so that the windfall can be invested with the proper asset allocation to meet the clients financial goals. Depends on their age, objectives, and monthly cost of living. After paying for funeral costs, the best option is to invest the funds conservatively to last as long as possible. Hopefully, there is a plan on what to do with the proceeds prior to the windfall payout. When it comes time for you to receive your life insurance payout, you might have several options at your disposal. You can't find the right investment unless you understand what neighborhood to look in. Obviously, it's important to make sure enough life insurance is purchased in order to fund the investment pools if the surviving spouse would need to use the proceeds to cover their living expenses for an extended period of time. You want to make sure you're not underinsured or overinsured when you buy your life insurance policy. Term life insurance payouts begin with the filing of a … I think there is one thing that should be done immediately: Review and update your financial plan with a trusted advisor. How To Invest Life Insurance Proceeds (In 2020), term life insurance quotes with no medical exam, without me having to collect your personal information, 41 Experts Vote On Term vs Whole Life Insurance, The Ultimate Guide To Term Life Insurance, Personal Capital, Betterrment, Schwab and others here, 13 Reasons To Buy Term Life Insurance Online, Getting Life Quotes With No Phone Calls From Agents, index the portfolio with globally diversified ETFs, Official Member of the Forbes Finance Council. What do you do with all of that money, how do you make sure you don’t squander it or put it in the wrong places? Doing so protects the principle invested and provides more certainty the money will be available should it be needed. On the other hand, the survivor may not have enough income once their spouse dies. We do our best to ensure that this information is up-to-date and accurate. 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