My brother passed and left me as a life insurance beneficiary… what should I do?

My older brother took his own life last month after struggling with mental health issues for a long time. I was there for him, doing everything I could to help. It’s really hard to not wonder if I did enough. After all the sleepless nights and processing what happened, I finally felt ready to look into the financial side of things.

He had a life insurance policy he set up over two years ago, and shortly after his passing, I got a call from the insurance company to confirm my details. Within a couple of weeks, the funds were released, and I received around 1 million USD.

I’m 22 and honestly have no clue what to do next. My brother was 26, left his car, and no debts.

To clarify, this is outside the US.

EDIT: Thanks for all the advice here. Some are asking about insurance and suicide. In my country, life insurance is paid out if it’s been active for over a year. The money has already been paid, and the company is aware of his passing, so there are no issues on that front. Also, insurance payouts here are non-taxable.

Due to the number of off-topic comments this post received, the moderators have locked further comments. This post did receive some helpful responses, but it unfortunately drew a lot of unhelpful replies as well.

Sorry for your loss.

Tell nobody. Put it in a high-yield savings account while you think about what to do. This forum has good advice, but meeting with a trusted advisor could be a good move too.

Zara said:
Sorry for your loss.

Tell nobody. Put it in a high-yield savings account while you think about what to do. This forum has good advice, but meeting with a trusted advisor could be a good move too.

Exactly. Don’t tell anyone, or you’ll have people coming out with all kinds of stories asking for help.

Zara said:
Sorry for your loss.

Tell nobody. Put it in a high-yield savings account while you think about what to do. This forum has good advice, but meeting with a trusted advisor could be a good move too.

Keep it to yourself. No family, no close friends. Just don’t share this.

Zara said:
Sorry for your loss.

Tell nobody. Put it in a high-yield savings account while you think about what to do. This forum has good advice, but meeting with a trusted advisor could be a good move too.

Find a fee-based advisor who charges by the hour, not by commission or percentage. Pay for a session or two.

Zara said:
Sorry for your loss.

Tell nobody. Put it in a high-yield savings account while you think about what to do. This forum has good advice, but meeting with a trusted advisor could be a good move too.

Maybe split it across multiple savings accounts.

@Oren
For those unsure: splitting it up helps to ensure coverage under deposit insurance, which typically covers up to a certain amount per bank. OP should check the equivalent in their country.

Aleyna said:
@Oren
For those unsure: splitting it up helps to ensure coverage under deposit insurance, which typically covers up to a certain amount per bank. OP should check the equivalent in their country.

OP is not in the US, so FDIC doesn’t apply. They should look into their own country’s coverage.

@Vincent
Many western countries have similar insurance systems.

Aleyna said:
@Oren
For those unsure: splitting it up helps to ensure coverage under deposit insurance, which typically covers up to a certain amount per bank. OP should check the equivalent in their country.

Since OP isn’t in the US, different rules might apply.

Aleyna said:
@Oren
For those unsure: splitting it up helps to ensure coverage under deposit insurance, which typically covers up to a certain amount per bank. OP should check the equivalent in their country.

Just noting that OP is not in the USA, so no FDIC here.

Besides the helpful advice here, I’d suggest you delete this post once you’ve gotten what you need. Many people create anonymous accounts for these questions to avoid unwanted messages.

There’s a special section on ‘Windfalls’ on the forum. Very sorry about your brother.

Timothy said:
There’s a special section on ‘Windfalls’ on the forum. Very sorry about your brother.

One thing to note: some countries have unique tax situations, so a professional advisor could help.

My deepest condolences for your loss. You were clearly an important part of your brother’s life, and naming you as beneficiary says a lot about his feelings for you.

This amount of money is life-changing, especially at your age. I’d strongly recommend speaking with a tax professional and fiduciary advisor. And, above all, don’t share details about the amount with anyone right now; grief can sometimes make loved ones act out of character. When you’ve made your decisions and feel ready, you can decide who to inform.

I also think creating something in memory of your brother, like a donation or scholarship, could be a beautiful way to honor him. Best wishes to you.

This conversation has been removed by a moderator.

A good tip is to put the money in a high-yield savings account or a safe investment and leave it untouched for 6-12 months. The amount can be overwhelming, and waiting helps avoid rushed decisions.

When I got life insurance money, I used some too soon and ended up regretting it. Take your time and think through how you want to use it.

I’m so sorry about this, sending you virtual support if that’s okay. Sometimes, nothing you do is enough for a person in that mindset. If you want to honor your brother, maybe consider creating something that could make a difference in others’ lives, like a scholarship or a donation.

Please consider finding a therapist if you haven’t already. Working through this with a professional is one of the best things you can do for yourself long-term.