Life Insurance Payments
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Death Benefit Payouts from Life Insurance

You may have heard recent reports about some insurance companies putting death benefits into retained-asset accounts1. These accounts offer low interest rates and can make it hard for beneficiaries to access their money.

Nationwide does not use retained-asset accounts in its life insurance business. When you have a life insurance policy from Nationwide, your beneficiary can choose how to receive the death benefit payout.

One of the options is for the payment, or part of the payment, to be deposited into an FDIC-insured money market account with Nationwide Bank.

Here’s how a Nationwide Bank account stacks up against a retained-asset account:

 FDIC-insuredInterest rate paid on your balanceAccess to your money
FDIC-insured Money Market Deposit Account with Nationwide BankYes, up to $250,000Competitive ratesEasy and convenient
Retained-Asset AccountNoTypically pay a low rateInsurer must send money to cover each check written from the account

Other death benefit payout options include a lump sum payment − where the beneficiary receives a single check − and various annuity alternatives.

Talk to your insurance professional about which death benefit options are available before buying a life insurance policy.