Bloomburg: Fallen Soldiers' Families Denied Cash as Insurers Profit

[mriddick]

http://www.bloomberg.com/news/2010-07-28/fallen-soldiers-families-denied-cash-payout-as-life-insurers-boost-profit.html

Ripping off the families of our fallen is beyond the pale in my opinion. There is no reason to have the account in the first place, it's a death benefit that should be paid out. And If they are holding the money in an uninsured investment account it needs to be paid out as if it is in such an account (what's the market up this year so far?) not a simple interest savings account paying less then half a percent.

[cciota]

I heard about that today. I guess Prudential was storing the money in a separate account and making money off the interest. They would only put in 1% of the interest into and account and give the family checks for that account. The families would go to use the check and they would be no good. Something to that effect. F@ckin' leaches.

[mriddick]

Did you catch the part where they have accounts like this set up for other companies/institutions except they pay off those families at rates up to 4.5%, 9 times what they pay out to families of our fallen soldiers.

[cciota]

Did you catch the part where they have accounts like this set up for other companies/institutions except they pay off those families at rates up to 4.5%, 9 times what they pay out to families of our fallen soldiers.

No, I didn't hear that.

[ltorlo64]

While I don't think the insurance companies are being up front about what they are doing, I didn't see anywhere that the people were being ripped off. At least not in the sense that they will not/can not get their money. Now, the interest is another matter, but just for the benefit, the people get that, if they write the bank draft at a bank. I think the insurance companies need to get a bopped on the head for this, but to say the insurance companies are denying them the benifit that was paid for is just trying to sensationalize the story and really missing the real problem. But it did make for a better headline.

[justinsaneok]

I was looking for something good to link to about this I just saw it om the news. I guess you beat me to it. So fucked up I don't know what to say. Did anyone see Hardball with douchbag Chris Matthews yesterday he was talking with Az sen. about national IDs and the fed lawsuit against AZ CHRis MAtthews Is A ASShole

[justinsaneok]

While I don't think the insurance companies are being up front about what they are doing, I didn't see anywhere that the people were being ripped off. At least not in the sense that they will not/can not get their money. Now, the interest is another matter, but just for the benefit, the people get that, if they write the bank draft at a bank. I think the insurance companies need to get a bopped on the head for this, but to say the insurance companies are denying them the benifit that was paid for is just trying to sensationalize the story and really missing the real problem. But it did make for a better headline.
Wake up Guy

[mriddick]

While I don't think the insurance companies are being up front about what they are doing, I didn't see anywhere that the people were being ripped off. At least not in the sense that they will not/can not get their money. Now, the interest is another matter, but just for the benefit, the people get that, if they write the bank draft at a bank. I think the insurance companies need to get a bopped on the head for this, but to say the insurance companies are denying them the benifit that was paid for is just trying to sensationalize the story and really missing the real problem. But it did make for a better headline.
One of the issues mentioned is the companies are telling the soldiers one thing who report back to their families what to expect, then when they die the families get a very different pay out and treatment from the companies.

My own son before leaving for Kandahar called and told me about taking out a policy and what to do in case of him not coming back, it sounded alot like what some of the families were told by their sons and I got to wonder if he has not taken out one of these polices.

[ltorlo64]

One of the issues mentioned is the companies are telling the soldiers one thing who report back to their families what to expect, then when they die the families get a very different pay out and treatment from the companies.

My own son before leaving for Kandahar called and told me about taking out a policy and what to do in case of him not coming back, it sounded alot like what some of the families were told by their sons and I got to wonder if he has not taken out one of these polices.

I am on active duty and have a $400K life insurance policy. It is "standard issue" for all service people. In fact, you get it whether you want it or not, you have to specifically opt out of it. If this is what the DOD (government) is allowing the insurance companies to do, they need to be stopped from telling soldiers and sailors one thing and doing something different. If it is a seperate policy, then it less DOD responsibility, though they can definately take action to make it stop.

With the amount being $400K, I am betting it is the Servicemen's Group Life Insurance, which means the DOD needs to get involved quickly.

[ltorlo64]

Wake up Guy

I have had to deal with life insurance companies. It is not something I like doing normally, and when doing it after a loved one has died is even less fun.

I did not say that I thought the insurance companies were being ethical, just that I didn't think they were ripping off anyone. The insurance payment is nominally $400K, unless a service member specifically authorizes a lower amount. I read nothing that states that the benificiaries can not get the money owed, just that the insurance companies are taking the money and offering to "invest" it while you decide what to do with it. That the insurance company is keeping 75% of the return being made is wrong, but it is not stealing from the death benifit, but from the "investment" income. If they paid less than the $400K, that would be stealing.

I am more concerned with the money being unsecured and the benificiaries not being told that in a forthright manner. The benifiaries need to have it explained to them in language that they can understand what is being offered/recommended by the insurance company.