If you’ve recently suffered the loss of a close family member or know someone who has, chances are you have to deal with the ins and outs of life insurance: how do payouts work? What types of death benefit payouts are available in Plano, Texas? While not a pleasant subject, it’s one worth researching before the time comes to deal with an insurance company.
The types of death benefit payouts offered depend on the specific policy in question. If you’re not sure about the type of policy you have or what your options are, your best bet is to check with an independent agent to find out more about the death benefit payout in question.
You generally have two options for life insurance death benefit payouts: either you can have the money deposited into a FDIC-insured money market deposit account, which guarantees a payout for up to $250,000, or you can have it deposited into a retained-asset account.
Each type of account has a few benefits and drawbacks. Here are a few:
FDIC-insured money market deposit account:
· Higher interest rates
· More security, in that your deposit is insured for up to $250,000
· Easy access to funds
· Not insured by the federal government, so a bit less secure
· Interest payments tend to be lower
· To access funds, your insurer must send cash to equal the money withdrawn from the account every time funds are withdrawn; accessing your money can be a bit more time-consuming with this type of account.
Of course, the type of payout you’ll have to deal with depends entirely on the type of policy. If you have questions, talk to an independent agent about your options! Or, if you’re still in the stages of finding the right insurance policy, make sure you compare quotes online to find the best policy for your family.