What To Do With Life Insurance Payout? 
The proceeds from a life insurance payment can be used in any way the beneficiary sees fit . Many people will put it into their checking account , a savings account , buy a life insurance policy on themselves , invest some of it -LRB- e.g. retirement accounts , stock market , etc. -RRB- , spend some of it -LRB- i.e. paying off bills , funeral expenses , down payment on a house , etc. -RRB- . A SPIA can be a great option to consider as well . SPIAs are offering about 6-7 % interest on the funds right now and guarantee you an income stream for the rest of your life . The amount of the payout can be a factor in determining what may be most advantageous for you . If someone has a $ 50,000 payout , they may consider just putting it in their bank account or paying off debts . Someone with a $ 1,000,000 payout may decide to diversify the money 's usage by putting a portion away , pay off some debts , invest some it , and create an annuity . It 's helpful to consult with a financial advisor when trying to create a good course of action . Keep in mind though , a financial advisor/planner will likely have fees that they charge for their management of the funds . Please feel free to contact me for help . As an experienced insurance broker , I 've helped many clients who have had a claim figure out a good course of action for the use of the funds and I do not charge any fees for my services - as an insurance broker , I 'm compensated by the insurance company for sales of policies , I do not charge fees for my input . Thanks very much . 