- Pay off outstanding debts. ...
- Cover living expenses (keep money to pay bills) ...
- Build an emergency fund in an interest-bearing account. ...
- Spend on necessities. ...
- Whatever's left, consider investing. ...
- Invest for Income. ...
- Invest for Growth.
What can I do with my life insurance?
Life insurance benefits can help replace your income if you pass away. This means your beneficiaries could use the money to help cover essential expenses, such as paying a mortgage or college tuition for your children. It can also be used to pay off debt, such as credit card bills or an outstanding car loan.
How does life insurance pay out?
Financial planners don't recommend cash-value life insurance as an investment unless you've maxed out contributions to tax-advantaged retirement accounts, such as IRAs and 401(k)s, have saved for emergencies and other pressing needs, and are able to commit to a policy for the long term.
Is cash value life insurance a good investment?
How long does it take to collect a life insurance claim payout? Depending on the type of policy, it can take as little as three to five days to receive a death benefit payment once you've filed a life insurance claim if you're a named beneficiary.