It needs the same kind of documentation as any other source: the origin of the funds, the legal basis for receiving them, and the path from receipt to investment.
Treat the payout like any other documented source of funds
Retain the policy, the claim, and the payout confirmation, and be ready to explain the underlying circumstances if asked.
Explain both entitlement and movement of the payout: preserve the policy, beneficiary designation, insured event, claim adjudication, insurer remittance, deposit, and every later transfer. EB-5 requires lawful source and path of funds; capital must be at risk and either invested or actively in the process of being invested. The minimum is US$1,050,000, or US$800,000 for an investment in a targeted employment area—rural or high unemployment—or an infrastructure project. The enterprise must create ten full-time jobs for qualifying U.S. workers. A common mistake is assuming an insurer's payment letter proves the project's amount, risk, and job-creation elements. Source evidence and investment eligibility are separate showings.
Hypothetical example: A Tecumseh-area beneficiary uses a life-insurance settlement for a standalone senior-care facility. The applicant keeps the contract, claim correspondence, bank trail, construction payments, ownership documents, and hiring model. Because the investment is standalone, the immigrant petition is Form I-526, not Form I-526E. The team verifies which threshold applies rather than calling the site targeted without support, and tests whether ten qualifying full-time positions will be created. A lawful payout does not remedy an underfunded or job-deficient enterprise.