Life Insurance, Have Cake, Eat It Too Dept. 0
Bloomberg reports on another reason to take your the life insurance benefits in a lump sum, rather than to use those vouchers the insurance company wants to send you. This lady took the vouchers and got taken:
Had Williams’s money been in a bank, instead of an account managed by an insurer, federal and state law would have required the bank to verify signatures on checks and cover losses. Williams’s predicament spotlights the uncertainties people face by accepting so-called retained-asset account checkbooks from insurers.
The entire article, which is detailed and thoroughly researched, is worth a read.
