Experts’ Insight on Life Insurance Payouts
Rick Valenzi, CFP
Founder and Certified Financial Planner at Financial Zenback to all experts
What factors can significantly affect the timing of a death benefit payout?
If the death needs to be investigated like in the case of an overdose or a crime, it can get delayed. Otherwise, it’s usually processed within 60 days of the insurance company receiving the death certificate.
Could you provide guidance on how to handle the tax implications of a life insurance payout?
Death benefits are always tax-free.
Are there any best practices beneficiaries should keep in mind?
I would recommend hiring a financial planner. Life insurance benefits, lottery winnings and large inheritances are usually spent within five years. Getting help managing a large sum of money is critical to making it last.
