The death of someone you love is one of the most stressful experiences anyone can go through.
No amount of money can not even come close to replacing a human life, but I saw how financially devastating it is when someone dies without Insurance -life. It is not a pretty picture.
It is essential to determine how best to manage the money that is left to you by the deceased.
A study in 2014 found that the average family spends insured death benefit in all three years. Careful planning and a little discipline can help to avoid running out of money too soon.
Every situation is unique. Your family size, income, short and long term objectives, the nominal value of the life insurance policy, etc., will help shape the plan you come up with.
The purpose of this article n 't provide advice in depth investment. You can contact your financial advisor before making any big decisions. That said, I am a Certified Financial Planner (CFP) and a Chartered Financial Consultant (CHFC), so this is familiar territory for me.
Depending on the specifics, there are three ways I recommend my customers "invest" their death benefit:
- annuitize delivery
for some people, it makes sense to spread the money over a longer period of time instead of taking a single lump sum payment. For these people, the advantage annuitizing is a great option.
You can structure payments so that you receive a check each month for a specified period of time, or you can receive payments for the rest of your life, guaranteed. Watch the short video below to learn more:
I often suggest this to people who are in search of guaranteed income and safely, predictable growth, no matter how crazy the economy gets.
Since this is a big topic, I will share this post into two parts. Stay tuned for the second tranche!
Happy New Year!
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