Being that I work in the life insurance industry, my friends sometimes confuse me for an authority on all subjects insurance-related (and on investments too). I am a communications guy, I tell them. I don’t have a license to sell products or offer much in the way of useful personal finance advice. My job is to help consumers understand the basics of my industry’s products, such as what they do and why they’re needed, and how important the people—that is, insurance agents and financial advisors—are in the process of helping consumers figure out what they need and how much.

Recently, one of my friends came to my house and, between conversations about sports, travel and politics, he asked me an insurance question. His father had died, and he knew a portion of his father’s life insurance policy benefit was coming to him. Initially, my friend had no clue how, but then, by mail, the insurance company sent him a letter and a small booklet. It took his portion of the death benefit and set up an account that allowed him to draw down the benefit by writing checks to himself with the booklet provided by the company.

My friend wanted to know, “Jim, is this generally how people receive life insurance proceeds?”

I didn’t know much about this payment system, I confessed to him. I knew of cases when an insurance agent handed a check to a widow for the full amount of the benefit. In this case, I don’t think my friend’s father had an agent, and neither did my friend—which is why he posed the important question to me, and not a qualified professional. All I could do is suggest he call the insurance company to learn more about the payout system and his options.

Afterward I was curious enough to ask an expert, my boss, Marv Feldman, president and CEO of the LIFE Foundation, about how death benefit payouts are generally structured.

Marv told me that receiving a check book instead of a lump sum check is fairly standard in the industry now. If the beneficiaries want all the proceeds, all they have to do is write a check just like they would from their own checking account. What this does is give the beneficiaries time to think about what they should do with the money, and keeps them from making quick and rash decisions at a time when they are prone to making decisions with their emotions. And while the beneficiaries mull over their options, the money sits in an account earning interest comparable to most money market funds.

My boss also emphasized that beneficiaries should consult with a qualified insurance professional to determine how the death proceeds can be invested to maximize the returns and minimize the risk. Many times the best decision is to do nothing with the money for a short period of time until the family has a clear picture of what they want and need to accomplish. This allows time to put an action plan in place and follow it through to completion.

I’ll pass along a link to this blog post to my friend and hope he heeds Marv’s advice. Right now, he needs advice only an insurance professional can give him.