How to Get Life Insurance for an Injury Settlement

• 1). Determine whether you will be taking a lump sum settlement or a structured settlement. A lump sum is one check for the entire amount given to you to use at your discretion. A structured settlement often buys into an annuity and pays you a regular monthly payment either for your lifetime or for a specified number of years. If at all possible, a lump sum distribution will allow you to have more control over your assets to diversify in your own annuities and life insurance.
  
  
• 2). Talk to a financial planner to determine what your living needs are and how much income you need to pull from your settlement. You may need to confer with your doctors and employers to determine the level of your disability and how much income, if any, you can make on top of the settlement. Establish what amount of your assets will be earmarked for living expenses and what amount can be saved or used for life insurance purchase.
  
  
• 3). Contact a life insurance agent about the possibilities of life insurance. Many people who have experienced major injuries have a lower life expectancy. Insurance companies are therefore very careful about what types of life insurance policies they will underwrite to disabled clients. While you may not feel disabled, chances are that if you received a large settlement that you have some degree of disability. It is up to each insurance company and its underwriting department to determine if your level of injury and disability is a risk they are willing to assume. Life insurance is a great investment if you are disabled because it can help to protect your family should something happen to you to provide them the income they will need for the remainder of their lives.
  
  
• 4). Apply for the life insurance and request a face amount based on the lump sum premium you will pay. You can also use part of a structured settlement to pay monthly premiums into life insurance, but you will get a better value if you can do a lump sum payment. The company will do a medical history and request a physical. Remember that the less serious your injury the more likely you will be approved and approved for a higher death benefit. If one company rejects your application, don't give up. Each insurance company has its own underwriting and may decide that you are insurable.