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Financia
l Access Account and
life
Insurance
Disclosure
Statement
The death of
a
spouse
,
parent, child, partner, or other
loved one is a difficult time. In addition to the emotional
stress present during the weeks, months, or years
following a death, financial burdens may also arise. Life
insurance is intended to assist with these financial
burdens. While life insurance policies provide for a single
payment of the death benefit, policies may also offer other
payout options that are intended to fit your needs and
those of your family. The following information describes
the Financial Access Account we are offering you as an
option to a single payment.
What is the Financial Access Account?
The Financial Access Account (FAA) is a temporary
repository of funds available to any beneficiary entitled
to receive benefits of $5,000 or more. The account’s
function is to give you, the beneficiary, the time you
need to consider all of the financial options available.
The payment of the full benefit due under the policy will
be accomplished by delivery of a “checkbook” of drafts
which are similar to checks by different in some
respects. You can write them just as you would checks.
The use of the Financial Access Account provided you
the flexibility to make the right decision regarding your
long-term financial needs while earning interest on the
life insurance proceeds.
How does the Financial Access Account work?
Your FAA is a draft account which is maintained by
Northern Trust Bank. A draft account is similar to a
checking account, and earns interest. However, instead
of checks, you will receive a book of drafts. You write as
a many drafts as you like in the same manner as you
would write checks when you need to access your
money. Our obligation to pay the total policy or contract
proceeds is satisfied by depositing the total proceeds in
the FAA. Once payment is made to you via the FAA,
you will have immediate access to the entire amount,
plus any accumulated interest. When your draft is
presented for payment, it is paid through Northern Trust
Bank. Please check with your financial institution on any
potential delays in accessing the funds once the draft(s)
has been presented.
Are there minimum draft requirements?
Yes, each draft must be a minimum of $250. You may
keep your FAA open as long as you like. The only
requirement is that you maintain a minimum account
balance of $250. If the account balance falls below
$250, we will send you a check for the remaining
proceeds, plus all accrued interest, within 45 days of the
account closure.
11-077-1(11/18)©Americo
Can I write one draft to access the entire amount?
Yes. One draft may be written at any time to access the
entire amount of the FAA, including interest.
Are my funds guaranteed by the Federal Deposit
Insurance Corporation (FDIC)?
FAA funds are held in our general account and are not
guaranteed by the Federal Deposit Insurance
Corporation (FDIC), but are guaranteed by State
Guaranty Associations. State Guaranty Association
coverage limits vary by state.
Is the interest earned on my FAA taxable?
The interest you earn on your FAA may be subject to
income taxation. We recommend you consult a tax,
investment, or other financial advisor regarding tax
liability.
What fees are charged on the FAA?
Your FAA has on charges for drafts or monthly service
charges. However, your account will be charged the
following fees for each of the particular services
described below:
•
$10.00 fee for any draft returned unpaid;
•
$12.00 fee for each stop payment order;
•
$2.00 fee for a copy of any draft or statement
We reserve the right to change these fees at any time.
In addition, we may derive income, in addition to any
fess charged on the account, from the total gains
received on the investment of the balance of funds in
the FAA.
How frequently will I receive statements?
Each month that there is activity on your account other
than the crediting of interest; you will receive a monthly
statement. Otherwise, you will receive quarterly account
statement showing the current balance, the interest
credited, the drafts written, and any other account
activity.
How is interest calculated?
The interest rate currently being paid on FAAs is
0.55%. Interest is earned on your FAA from the date it
is established until the date drafts are cleared. Interest
is compounded daily and is credited to your account
monthly. Interest is based on the balance in your FAA at
the end of each day. The guaranteed minimum interest
rate is 0%. Interest rates are reviewed by the Company
on a regular basis and are set at the Company’s
discretion.