Insurance--Your Checkbook Is in the Mail Financial Planning (08/01/00) Vol. 6, No. 10 p.25; Korn, Donald Jay
Increasingly, insurance companies are sending out
checkbooks that provide beneficiaries with access to life
insurance proceeds through an interest bearing account, rather
than sending a check for the full amount of the policy. Critics
think that the checkbook system is not needed and that how a
beneficiary uses life insurance proceeds is between the recipient
and his or her financial planner. About half of retained asset
accounts are cleaned out the first year to be invested elsewhere.
Of the other half, 70 percent are maintained for the long term.