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Beneficiaries have financial options

Posted 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.ADNFCR-2297-ID-19913848-ADNFCR

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