After a member of my family died, I received correspondence from the insurance company asking me to allow them to hold the money from the policy in a special fund. According to them, this way I would have the option to be able to write out cheques against the funds when I needed to. Is this something that I should consider?
This has become a very popular option that is now being offered by many insurance companies. This option has come about, due to the fact, that many beneficiaries have informed insurance companies that they sometimes needed time to decide on how they were going to need to use the money. They were unsure if they were going to invest it, or if they were going to need it to settle debt issues.
This option gives the beneficiary the time to grieve, and try to get life back on track before trying to make major financial decisions that they just may not be emotionally ready to make.