How much does the average life insurance payment cost?
"$ 618,000," says Matt Myers, head of customer acquisition at Haven Life. The figure represents the average face amount purchased for a life insurance from Haven Life, which in turn represents the average payout we expect to pay when claims are made.
Keep in mind that an average is exactly that – meaning that some beneficiaries receive higher life insurance payments and some beneficiaries receive lower life insurance payments. The life insurance payment that your beneficiaries receive is determined by the coverage amount you choose when you apply for life insurance.
That's why it's important to know how much life insurance coverage you need ̵
How long does it take to get a life insurance payment?
How long does it take to get a life insurance payment? Most Haven Life life insurance policies are paid out within 24 hours of receiving and confirming a death.
When a life policyholder dies, a lawyer, relative, beneficiary or close relative fills out a death claim which is then sent to insurance companies that have issued the life insurance policy. From there, the life insurance company contacts the policyholders and confirms all the necessary information required for the payment (proof of identity, bank account information, etc.). At that time, the life insurance payment is transferred as a lump sum to the beneficiary's bank account – or divided between several beneficiaries as specified by the policyholder.
In most cases, death benefits are tax-free and can be used to cover everything like final expenses, funeral expenses or outstanding debts – and if beneficiaries receive the average life insurance benefit of $ 618,000, they may be able to put some of that money into college costs and pension costs.
There is a lot you can do with a life insurance payment – that's why it's important to choose the amount of life insurance coverage that is most likely to support your loved ones.
What factors affect your life insurance payment?
In most cases, life insurance payments are distributed without much hassle or extra work. Life insurance rarely needs to be arbitrated, for example – especially if all information about the life insurance recipient is complete and up to date.
There are some cases where external factors can delay your life insurance. payment. If the insured died shortly after taking out life insurance, for example, the life insurance company may need to confirm that all medical information provided in the original insurance information was correct – for example, that the policyholder did not claim to be in good health when in fact they were in poor health.
Similarly, if a beneficiary's contact information is out of date – or if a beneficiary cannot be found – it may take longer for a life insurance company to distribute the life insurance payment. This is why it is important for policyholders to maintain accurate information about their beneficiaries and to list conditional beneficiaries if they survive one of the loved ones they have designated as the recipient of a life insurance payment.
If you are an adult listed on a parent's life insurance policy, take a moment to make sure your information is up to date and accurate. Not only will you help your parents keep their important documents organized – especially if your parents are at an age where they have trouble managing their finances – but it will be one less thing to worry about during an already stressful time.  How can you choose the right life insurance payment for your beneficiaries?
How do you choose the best amount of life insurance coverage for you and your loved ones? Should your life insurance give your beneficiaries the average life insurance payment – or should their payment be higher or lower?
Before choosing a life insurance policy, ask yourself what kind of financial obligations you can leave your loved ones in the worst case. Many people understand that they want to provide enough life insurance coverage to cover lost income, to pay off a mortgage or to help with funeral expenses – but not everyone realizes that there are other types of financial situations that life insurance can help cover.
Take, for example, childcare. Many home parents do not include the cost of childcare in their life insurance coverage – which is one of the reasons why there is a significant gender gap between men and women. If you are a primary care provider, make sure your life insurance covers the amount it would cost to pay someone else to provide that care.
In addition to the gender difference in life insurance, there are racial shortcomings in life insurance to be aware of. – especially if you are part of a historically acquitted society that has often been denied access to high-quality, low-cost life insurance. Life insurance is a great way to create and convey the wealth of the generation, so look for an affordable life insurance plan that provides the kind of life insurance coverage that can help not only your immediate family but also future generations.
You may also want to make sure that all life insurance payments that your beneficiaries receive cover not only your income, debts and final expenses, but also life-ending health care costs that can cause serious financial strain to the people you leave behind. Many people do not consider potential medical bills when considering their life insurance amount – so consider the possibility of medical debt in your life insurance plans.
If you still have questions about how much coverage you should give your recipient, use Haven Life's coverage calculator to help you come up with a coverage estimate.
After all, just because the average life insurance amount is $ 618,000 does not mean you want your life insurance to be average. Taking the time to choose the best life insurance payout to protect the people you care about the most can make a difference.