There are many articles about how much life insurance to buy or what type of life insurance to buy, however, there are so many other issues to consider with life insurance. An important issue to consider is what a beneficiary should do with the proceeds from a life insurance policy? For many of us, this will be the largest sum of cash we ever receive at one time. So what should you do with the money to ensure that it’s used for it’s intended purpose? To answer that question, Simplyinsurance.co and J.C. Matthews recently published: 30 Finance Experts Reveal How To Invest Life Insurance Proceeds (Summer 2017). Simplyinsurance.com asked 30 personal financial experts and bloggers the important question: “How should a surviving spouse invest their life insurance proceeds?” The general agreement was that you should take time to grieve and then when life starts to settle down, then make your choices. Read the article and see for yourself. Here’s my answer:
The first step is to get the payout from the life insurance company rather than leaving it with them on account.
Any proceeds should then be placed into a savings account for 3-6 months so that they have time to process their loss and return to a routine.
Depending on their level of financial expertise, they should either invest according to their strategy.
And if they been using a financial advisor, consult with them to see what’s appropriate.
If they have not been using a financial advisor, they should seek out a qualified financial advisor who can help them develop a sound overall strategy rather than just buying a specific product.
Bottom line, take some time to breathe, there is no rush.
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