Did You Know?
Imagine you are sitting down with a surviving spouse to discuss settlement options after the loss of a loved one. As you review the Annuity Claimant Statement together, they stop at the Internal Transfer option and ask:
“Does this mean I cannot move my inherited funds into a new National Life annuity because I am a spouse?”
This was a real question our Claims team heard from agents in the field. The prior wording could cause confusion before the conversation even began, especially for beneficiaries trying to understand their options during a difficult time.
Why the Update?
Over the past year, Claims received consistent feedback from agents about the Internal Transfer section of the claimant statement. The previous version referenced “Non-Spousal” beneficiaries. Some surviving spouses read that language and questioned whether they could establish a new National Life annuity using inherited proceeds.
Claims worked with Compliance and Forms to review the settlement options page. The goal was to make the language clearer, easier to follow, and better aligned with current requirements. Rather than making a single wording change, the team updated the settlement options page to improve clarity and create a better beneficiary experience.
What Changed?
The updated claimant statement includes several changes designed to make the settlement options easier for beneficiaries to understand:
- Clarified Internal Transfer language for spouse and non-spouse beneficiaries.
- Reordered the settlement options so beneficiaries can more easily review the full range of available choices before making an election.
- Added an election related to Required Minimum Distributions, when applicable.
- Removed the SecurePlus Access settlement option, since new accounts are no longer being established.
- Updated language throughout the settlement options page to improve clarity and reflect current requirements.
What Agents Should Know
Agents do not need to determine which settlement option is best for a beneficiary. However, agents can help beneficiaries understand why it is important to carefully review all available options before making an election.
Because annuity death benefits may have tax implications, beneficiaries should consult their tax advisor before making a settlement election. They may also want to work with their financial professional to understand which option best fits their individual circumstances and long-term goals.
Why This Matters
The updated claimant statement helps beneficiaries review their options with clearer information and fewer avoidable questions. It also gives agents a better tool for having thoughtful conversations with beneficiaries at an important decision point.
This update is a good example of how agent feedback can lead to practical improvements. By listening to the field and working across Claims, Compliance, and Forms, we made an important customer-facing document clearer and easier to use during a sensitive time for beneficiaries.
The updated form does not change the agent’s role. Agents should continue to encourage beneficiaries to carefully review their options and consult their financial professional or tax advisor before making a settlement election.
TC9090150(0826)1
