Hi. This is Mathew Kryder at Petschauer Insurance answering the question, how does life insurance work when someone dies? First off, the insurance carrier needs to get communication that the insured has passed away, and they would require proof such as a death certificate. Once the death certificate is submitted, the beneficiaries will get paid out. They can choose to get paid as an income stream or a lump-sum payment. Because the payments are income tax free, most people just elect to get the full payout and can invest the proceeds as they see fit. I hope this was helpful. We have move videos to come.