You may feel torn in collecting the death benefits of life insurance left by a policyholder. It is important to remember that the life insurance was activated to assist in helping beneficiaries move on financially. You may need the benefits to help with funeral and future expenses. Using this money is what your loved one (the insured) had wanted.

In order to receive the benefits of life insurance you will usually need to file a life insurance claim. You can contact the life insurance company, and they maybe able to offer guidance on how to proceed and what could be required when filing a claim. You may have an option of how you would like to receive the benefits of life insurance.  Once your claim is confirmed and approved, the company may typically send you the death benefits payout. You may get a retained asset account, receive installments or receive a lump sum. If you need further assistance in this process, do not hesitate to contact an attorney or life insurance agent. To learn more about life insurance claims, visit the article “Steps to Filing Life Insurance Claims.”

If the insured did not have a life insurance types, but you do, you may be able to borrow from a loan on your policy. You must have a cash value accrued, and you typically must be able to pay the loan back. Loans that are not repaid may generally reduce your death benefits causing a decrease in the death benefits of life insurance that your beneficiaries could receive. If you do not have enough cash value accrued to take out a loan of if your life insurance is for a term, you could have the option of a life settlement. This could allow you to sell the ownership of your policy to an investor. You may typically receive a singular payment for your insurance policy. Once this is done, you will no longer have life insurance and your beneficiaries will no longer receive death benefits. This option can be complicated and is not for everyone. You should seek the advice of a life insurance agent before making any commitments.