How Is Life Insurance Paid Out? 
Life Insurance is paid out to the beneficiary when the Insured person dies . It can be paid out in a lump sum , or it can be paid out in regular payments . If taken out in payments , the beneficiary is paid interest on the part of the death benefit that is kept by the life insurance company , until it is all paid out . The life insurance company will often work with the beneficiary in even more ways to ensure that the death benefit is paid out in manner that is most beneficial to them . 