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Web life insurance payouts are sent to the beneficiaries listed on your policy when you pass away. Is taking a lump sum payout or reinvesting for lifetime income right for you? Web receiving proceeds from an annuity or life insurance policy. This is the amount of money that will go to your beneficiaries when you pass away. Therefore, the insurance company will need a copy of the insured’s death certificate. But your loved ones don't have to receive the money all at once. We can help guide you. Web the insurer will need the insured’s name, along with the life insurance policy number, in order to process the claim. How policy proceeds get calculated. Web in life insurance, the policy proceeds are the sums paid out to the beneficiaries when the insured dies. In addition, proof of the insured’s death is also required when you file a life insurance claim. Making financial decisions after the loss of a loved one can be stressful. Will you owe taxes on the annuity payout? When you buy life insurance, you choose a specific death benefit, also called the policy’s face value.