How is an RAA Used?
The use of a RAA can provide you the flexibility to make the right decision regarding your long-term financial needs while earning interest on the life insurance proceeds. You can choose to write one check or draft to access the entire proceeds at any time. However, you may be able to earn a higher rate of interest on the life insurance proceeds if you select a different payout option. RAAs are generally provided as an option to the beneficiary. However for some group policies, the employer might have agreed that a RAA is the only way life insurance claims are settled. If that is true in your case, you may write a check or draft to transfer the death benefit proceeds as you see fit. Key Questions to Ask and Issues to Understand If you are considering the option of a RAA or are provided one to settle a death claim, here are some important issues to consider: – What interest rate will be paid on the proceeds, how will the interest rate be determined and how will the interest amount be cr
