![]() The exchange rate we provide to you may be different from exchange rates you see elsewhere. The applicable exchange rate does not include, and is separate from, any applicable fees listed in the Consumer Schedule. The markup is designed to compensate us for several considerations including, without limitation, costs incurred, market risks, and our desired return. The exchange rate used when we convert one currency to another is set at our sole discretion, and it includes a markup. In addition to any applicable fees, we make money when we convert one currency to another currency for you. It does not apply to foreign currency drafts, checks, or wire transfers. This benefit applies only to foreign currency cash. You'll also receive the benefit when you purchase or sell foreign currency at a Wells Fargo branch. The benefit applies to the exchange rate for foreign currency purchases, when you purchase foreign currency through the Wells Fargo Foreign Currency call center, online at, or through a Wells Fargo branch. We may refuse to process any request for a foreign exchange transaction. We're your arms-length counterparty on foreign exchange transactions. Foreign exchange markets are dynamic and rates fluctuate over time based on market conditions, liquidity, and risks. Different customers may receive different rates for transactions that are the same or similar, and the applicable exchange rate may be different for foreign currency cash, drafts, checks, or wire transfers. The applicable exchange rate does not include, and is separate from, any applicable fees. In some cases the difference between the insurer’s overall rate and the credited rate is small, because some insurers credit interest based on prevailing rates at the time the death occurred (which might be considerably higher than rates prevailing today).In addition to any applicable fees, we make money when we convert one currency to another currency for you. Some of the “spread” between the rate earned by the insurer and that paid on the retained asset account is used to cover the expense of providing this account. In other words, even if the insurer were to lose money on its investments, the owner of the retained asset account would still earn interest. The insurer also bears all the investment risk and provides a guaranteed positive rate of return irrespective of market conditions. Insurers generally do earn a higher rate on their investments than they pay on these accounts, but still pay an interest rate that compares favorably with other accounts of similar instant liquidity. Once the money is released by the insurer, the creditor protection no longer applies.ĭon’t insurers earn a higher rate on their investments than they credit on these accounts? If so, why don’t they credit the higher rate to beneficiaries? Moreover, as long as the death benefit remains with the life insurer, it is beyond the reach of the beneficiary’s creditors. No one has ever lost a cent in a retained asset account, but the same cannot be said for bank accounts that exceeded the FDIC limits or most other investment accounts. In many states the insurer guarantees are up to $300,000 (in some states as high as $500,000), whereas the FDIC insurance limit is $250,000 (recently raised from $100,000). That is because: (a) historically, many more banks have failed than insurers and (b) there is a state guaranty fund system that insures at least as much as or more than the FDIC does. The money is as safe, perhaps even safer, with the insurer than with a bank, even taking into account FDIC insurance. #Checkbook pro account definition fullHowever, the money is protected and the beneficiary has full access to the funds at all times. As with other life insurance settlement options, the money stays with the life insurer. Is a retained asset account in an FDIC-insured bank? ![]()
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