When the time comes to file a death claim, New York Life offers you many ways to receive the proceeds, plus a settlement alternative. They include:
Lump Sum
You can take the lump sum of the claim money, and use as you see fit. However, most financial advisors encourage beneficiaries not to make any rash decisions with their money for at least six months.
Continued Interest Account
The Continued Interest Account (the default option) is an interest-bearing money market account that allows you to write checks against your benefit immediately. Payments of $5,000 or more are generally paid through the Continued Interest Account. You'll receive a personalized checkbook that gives you immediate access to all or any part of your funds, from $500 up to the full amount in your account. There is no charge to you for the account, or for the checks, and your money will be earning interest at competitive interest rates.
The Continued Interest Accounts crediting rate for accounts having a balance of $10,000 or more will increase to 0.87% with a corresponding annual yield of 0.87%. For CIA accounts with balances of $9,999.99 or less, the interest rate will increase to 0.83% with a corresponding annual yield of 0.83%.
You can also have your interest paid to you, or you can leave it in the account. Interest can be withdrawn in sums of $100 or more.
Elected Income
With this option, New York Life makes equal payments every 1, 3, 6, or 12 months, as chosen by you, for an elected period of years or for an elected amount. The current interest rate is 3.5%.* For more information, see your policy.
Guaranteed Life Income
If you select this option, we pay equal monthly payments during the lifetime of the named payee or payees. You can select guaranteed payment periods of 5, 10, 15, or 20 years. This option may not be surrendered once it is chosen. The current interest rate is 3.5%.*
For more information, see your policy.
Guaranteed Interest Settlement Alternative
New York Life also offers a five-year certificate guaranteed interest settlement alternative, providing you ample time to consider your future needs. The interest rate on the certificate is guaranteed for the duration of the certificate. The current interest rate for the five-year certificate is 3.5%.*
* The interest rates are as of the date this statement was prepared and can increase or decrease. To obtain the latest rates, call us at the 800 number listed on the Claim Form. Please note: The Continued Interest Account and the lump sum check are the only settlement options available for policies issued by the NYLIFE Insurance Company of Arizona.
Be the first to Comment
= external link that opens in new window...