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One issue confounded him: How was the company going to send him the money? A simple question, usually. However, together we researched, and learned something disturbing: The company did not want to lose the portfolio money, and offered no method for a direct payment of funds.
The company required the life-insurance funds be deposited into a newly created account with the life-insurance company. This account appeared harmless, but carried limitations on withdrawals. I personally found it insulting, so we called the company. We were told there was no option on the form to select direct payment. We were instead instructed to "write in the margin" our desire for "payment by check."
Widower gets more than he bargained for in claims attempt - Lowell Sun Online
So it looks like the widower in this column has his death benefit placed in a Retained Asset Account, but the lawyer/columnist says the account has “limitations on withdrawals.” I’ve never heard of a RAA that doesn’t allow you to immediately withdraw all the funds if you so choose.
RAAs got a real bad rap in the media a couple of years back, but I think it’s more a misunderstanding of how they work and why they are used. It might not be as conventional/simple as a lump-sum payout, but the beneficiary still has access to the entire proceeds at any time with an RAA, correct?
The company required the life-insurance funds be deposited into a newly created account with the life-insurance company. This account appeared harmless, but carried limitations on withdrawals. I personally found it insulting, so we called the company. We were told there was no option on the form to select direct payment. We were instead instructed to "write in the margin" our desire for "payment by check."
Widower gets more than he bargained for in claims attempt - Lowell Sun Online
So it looks like the widower in this column has his death benefit placed in a Retained Asset Account, but the lawyer/columnist says the account has “limitations on withdrawals.” I’ve never heard of a RAA that doesn’t allow you to immediately withdraw all the funds if you so choose.
RAAs got a real bad rap in the media a couple of years back, but I think it’s more a misunderstanding of how they work and why they are used. It might not be as conventional/simple as a lump-sum payout, but the beneficiary still has access to the entire proceeds at any time with an RAA, correct?
