The answer will depend on the terms of the insurance policy involved and the other facts and circumstances in your case. The life insurance policy owner may sometimes designate a specific settlement option to be paid upon his or her death. I suggest contacting the company regarding payment of death benefit options. These usually include:

· Lump Sum Payment: The death proceeds of a life insurance policy are paid to the beneficiary(s) in one lump sum payment.

· Fixed Period Payments: The death proceeds of a life insurance policy are paid to the beneficiary(s) for a fixed period.

· Life Income with Installments Certain: The death proceeds of a life insurance policy are paid to the beneficiary(s) in installment payments through a certain period. After the certain period, payments will continue to be made throughout the beneficiary’s lifetime but the payment may vary from the payments during the certain period.

· Interest Payments: The death proceeds of a life insurance policy remain with the insurance company and the company pays the beneficiary interest payments.

· Fixed Installments: The death proceeds of a life insurance policy are paid to the beneficiary(s) in fixed installments until the proceeds and interest on the unpaid balance of the proceeds are exhausted.

· Single Premium Annuity: The proceeds of a life insurance policy are used to purchase a single premium annuity from the insurance company.

Life insurance proceeds are typically transfer on death assets, meaning that they’re not included in the deceased estate and pass directly to the beneficiaries outside the probate process. However, it is possible to place a life insurance policy in a trust, so that the trustee pays the premiums. A living trust may be created during the life of a policyholder. Some trusts are created with a provision that the trustee dictates exactly how much each beneficiary gets. Some people create a trust to minimize estate taxes which apply to large estates.