Insurance Policies

The deceased may have had several types of insurance policies.

These could include:

• Life insurance
• Mortgage insurance
• Loan insurance
• Accident insurance (if applicable)
• Auto insurance (if applicable)
• Credit card insurance
• Various types of insurance provided by the employer of the deceased.

The proceeds from an insurance policy can generally be paid directly to the named beneficiary. These claims are usually processed quickly and can be an important source of money for the survivors. You should file claims for insurance policies as soon as possible, especially if finances are a concern.

You may need to make a decision regarding the type of payment plan you desire. Your options might include taking the money in a lump-sum payment, or having the insurance company make fixed payments over a period of time. The decision depends on your financial situation. You may want smaller fixed payments in order to have a steady income and to pay less tax on the money. Or you may want the full amount immediately to pay bills or to invest. You should consider consulting a lawyer or financial advisor about this decision.