Start Comparing Rates within Minutes!
Start Comparing Rates within Minutes and you could save!
Compare Rates Within Minutes!
- Complete 1 short quote form
- Compare rates from top insurers
- Save time & money!
Beneficiaries have financial optionsPosted On Thu, July 29, 2010
The death of a loved one can be a particularly difficult time for anyone. While the financial support a life insurance policy can provide is aimed to reduce stress, it can be hard for people to know what to do with such large funds.
One thing a beneficiary might decide to do is accept the money in one lump sum. People who chose this option and want to move the funds to a bank account should make sure they don't deposit more than the FDIC-guaranteed amount of $250,000.
Another option typically available is to accept the funds in a specific number of installments.This may be a desirable option for those want to ensure there is a stream of income available.
Given that the death of a loved one is a very emotional time, for some people it may be best to leave the funds with the life insurance company in a retained asset account.
"Beneficiaries have full access to the money in their retained asset account and can withdraw the full amount right away or at a later date," says the American Council of Life Insurers.
Beneficiaries do have options and should think them all through to determine which makes the most sense in their own circumstances.
Feedback or questions? Email the editor here.