SETTLEMENT ANNUITIES SET UP AND PAYMENT PROCESS

2007-03-08 10:33:40

( Financial )



Settlement annuities are periodic cash payments to an injured party. Insurance companies designed it for insurance policyholder’s accident related illness or death. Payment is made to the policyholder and its beneficiaries to compensate for lost income. It ensures inflow of cash to its beneficiaries during employment termination.

Settlement Annuities Set Up

Insurance policyholders set up settlement annuities with insurance companies as protection for future lost of income. Life insurance policy provides settlement option clause for policyholders and its beneficiaries in case the former met an acceded or death. Timing and amounts of payments are outlines in the clause. In case the policyholder still lives when the life insurance policy matures, the face value can be set up as settlement annuities for retirement pension.

You can set up settlement annuities with life insurance companies. Start by searching for stable insurance companies in the industry. Look for companies with records of paying claims on time and has the proven track record of managing its portfolio efficiently. Narrow down the list to the top five insurance companies you probably want to settle with. You proceed to request for product briefings from its individual representatives. Get the necessary information on the product terms and compare it across products. Select the product that suits you best.

Annuity Payment Process

Claims on settlement annuities are coursed through the agents handling your account. Contact the agent or the insurance claims representative when policyholder is incapacitated due to illness or death. Make sure you kept the insurance policy. Present it when you claim the settlement payment. A copy of last payment might be required also. It is necessary to keep all your records related to your life insurance policy. These are needed during settlement claim. Processing of annuity payment takes a minimum of one week to a maximum of 30 days.


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