How do I invest the proceeds from the death benefit so that I can support my family by myself?

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.

Want to read our answers to more of your questions? Check out our Q&A archives at the top of this page—click here.