Is Life Insurance Paid In A Lump Sum? 
Life insurance proceeds can be paid in lump sum . In fact , it is the most popular method of paying a death benefit . I base that statement on 32 years of experience in the insurance business . Typically , it is a tax-free benefit although a full-time broker or financial adviser can review additional ramifications . Money market funds are popular automatic destinations for the initial payment . You can have your funds deposited in many different options by the insurer , Your adviser is a great resource to review them . 