Investing Death Benefit Proceeds

The biggest  problem with a lump sum is that it tends to overwhelm people. Do nothing for  three to six months other than putting the money into a series of bank CDs with  staggering maturity dates so that you will be able to use it in small payouts  if you need it. If your lump sum is more than $100,000, the maximum amount that  is protected under FDIC insurance, divide it up into money market accounts or  CDs in different federally insured banks.
During that time you  can start looking into conservative stocks and bonds, and, if you're  comfortable with the idea, start an investment portfolio. If you have young  children, you may want to invest money for their education. However, if you're  at all uncomfortable with risking your principal, we say keep it in safe  instruments such as Treasuries or plain vanilla money market accounts and CDs.  Don't listen to people who try to offer you investment advice. You may be  better off having the money in accounts that provide a low but steady interest  rate than losing it.