How is life insurance paid?
After your death, your beneficiary will need to file a claim with your insurance company. It is helpful if they know you have a policy in place and that they need to file a claim. After the insurance company receives the claim, they usually pay the death benefit within 30 to 60 days.
A life insurance payout can be received in one lump sum. It can also be paid through installments or annuities if your beneficiary wants to receive payments for a set number of years or, if the funds are substantial, over their lifetime.