What If I Am Not Ready To Decide?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Jul 15, 2021
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Many insurance company customers and many advisors who deal with the bereaved have told companies that the immediate aftermath of the death of a loved one is a bad time to make financial decisions. Most major life insurance companies are enabling beneficiaries receiving payouts on all but very small policies the opportunity to safely defer any decisions on what to do with the proceeds while at the same time providing immediate access to some or all of the funds via a “checkbook.”
The insurance companies do this by automatically creating – at no fee to the beneficiary — special interest bearing accounts known in the industry as retained assets accounts for beneficiaries of their policies. The accounts are often given a brand name by each insurance company (for example, MetLife® (which created the first retained assets account) uses the trademarked name Total Control Account®). The proceeds of the death benefit are typically placed into the account at the insurance company for the beneficiary. Thus the funds remain protected by the insurance company.
Through the use of the retained asserts account the beneficiary is usually able to defer financial decisions. This enables the beneficiary to have time to decide whether another settlement option would be advisable – often some may be and some are not — and how the funds should be invested for the long term after he or she has had time to adjust to the death of the family member or friend.