Life insurance settlements are commonly considered a way to pay for your expenses as you grow older. However, life insurance settlements aren't just important for the person cashing the policy in. Life insurance settlements can be used to provide for one's family, especially for expensive, one-time costs.

A life insurance policy won't pay out for a long time. A settlement lets the policyholder care for their family now. Here are just six ways receiving a settlement can help your family now.

You may want to get a life insurance settlement and disburse your assets early on, especially if you worry that there may be some dispute. Wills can be disputed after you pass, and a life insurance policy will go only to the beneficiaries that are listed. Distributing your assets on your own will allow you to reduce any questions or complaints regarding who has gotten what. 

Distributing your assets early on also makes it easier for your family members to get started. Family members can begin investing, purchasing their own homes, going to school, and otherwise improving their lives. As with investing in retirement or a stock portfolio, being able to get started early yields better results.

Are some of your children or grandchildren going to college? Do some of your family members need child care to continue their career? Paying for education and childcare is an excellent reason to acquire a life insurance settlement, as it can increase an individual's earning potential over time.

This is an investment in your family's future, as it will increase their mobility today rather than giving them money later on.

Purchasing a home for your family can often be better for them long-term than having an insurance payout later on. If you currently need a place to live in, you can use your insurance settlement to buy a home and then leave this home to your family.

Over time, this real estate purchase will increase in value, making it a solid investment. By leaving real estate to your family, you can ensure that they always have a home in which to stay.

There are a number of investments that you can use a lump sum payment for. From stock market tips to the foreign exchange market, you can invest in long-term investments if you cash in your insurance settlement. If you feel confident in your investments, this may be a better way to build wealth and net worth, especially if you are concerned about providing for your family into the future. 

5. Funding a Family Business

Does your family run a business? Are some of your family members starting a new business? Funding a family business can give your family stability for generations to come, which may be more useful than a lump sum decades from now. Before you invest, ensure that your family members have a solid business plan so that the investment will pay off.

If you have ongoing costs, such as medical costs, these costs could eventually transfer to your estate or to your family members. To protect them from these debts accruing, you may want to pay them off now. Debts are cheaper when paid right away, as they won't have legal fees or late payments associated with them if they're paid right away.

If you feel as though your family has needs now, a life insurance settlement can be the way to meet those needs. For more information about the process of a life insurance settlement, contact the professionals at  Habersham Funding LLC.