Author Topic: Insurers Rip Off Families of Fallen US Soldiers  (Read 4344 times)

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Offline donnay

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Insurers Rip Off Families of Fallen US Soldiers
« on: July 29, 2010, 11:21:00 am »
Insurers Rip Off Families of Fallen US Soldiers

Keep payouts in interest-bearing accounts and skim off profits
By Caroline Miller| Posted Jul 29, 2010 7:35 AM CDT

  (Newser)  – It turns out that insurers handling death benefits for American soldiers have got a sweet scam going that enables them to keep profiting from the money even after it is supposedly paid out to families. They tell bereaved relatives that they've opened a convenient, interest-bearing account for their money that's a nice, safe place to keep it and they give them a "checkbook." But it's not a normal checkbook, they don't open individual accounts for each soldier, and they skim off most of the interest the money is making—giving beneficiaries 1% while it's earning 4%.

The military families are getting less than half the interest they would in a normal account, Bloomberg reports. Not only that, the money held in these general corporate accounts at Prudential or MetLife, isn't insured by the FDIC. Prudential says they make it clear to military families that they can take their money out anytime they want, but an insurance law professor isn't impressed. “It’s institutionalized bad faith,” he says. “It’s turning death claims into a profit center.”

Read more: http://www.newser.com/story/96760/insurers-rip-off-families-of-fallen-us-soldiers.html#ixzz0v5a2espZ


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Offline NWOSCUM

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Re: Insurers Rip Off Families of Fallen US Soldiers
« Reply #1 on: July 29, 2010, 11:57:27 am »
Nothing surprises me anymore.   >:(  Isn't it bad enough to send these innocent people into a perpetual war machine that has no intention of ever being stopped?  But to profit from their deaths as well.  Disgusting!!
"The receptivity of the great masses is very limited, their intelligence is small, and their power of forgetting is enormous." --Adolph Hitler, "Mein Kampf"

Offline chris jones

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Re: Insurers Rip Off Families of Fallen US Soldiers
« Reply #2 on: July 30, 2010, 06:46:43 am »

profiteers come in all shapes and sizes, the one thing they have in common ,,,
                      they are blood sucking parasites.

Offline larsonstdoc

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Re: Insurers Rip Off Families of Fallen US Soldiers
« Reply #3 on: August 04, 2010, 12:05:02 pm »
profiteers come in all shapes and sizes, the one thing they have in common ,,,
                      they are blood sucking parasites.

  +1

  There is never an end to the evil schemes of these blood-sucking insurers and other parasites.
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Offline chris jones

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Re: Insurers Rip Off Families of Fallen US Soldiers
« Reply #4 on: August 05, 2010, 09:07:55 pm »
  +1

  There is never an end to the evil schemes of these blood-sucking insurers and other parasites.

These weasels have the attitude: in the first place it is evident the youths who joined the military are the poor and uneducated slum dwellers or simply moronic, therfor it goes to follow the familys are not the brightest lights on the tree and easy money $$.
Moral of the story, the bloodsuckers dont care one twit about the soldiers who gave their lives nor are they interested in the suffering and heartache of the familys. Its all about money$$$$.......

Offline Letsbereal

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Re: Insurers Rip Off Families of Fallen US Soldiers
« Reply #5 on: August 05, 2010, 09:19:40 pm »
This Article Mentioned on AJS 29 July 2010: placed in "News Tips" on 28 July 2010 http://forum.prisonplanet.com/index.php?topic=181558.0

Fallen Soldiers' Families Denied Cash as Insurers Profit
28 July 2010
, By David Evans (Bloomberg)
http://www.bloomberg.com/news/2010-07-28/fallen-soldiers-families-denied-cash-payout-as-life-insurers-boost-profit.html

Excerpt:


The package arrived at Cindy Lohman’s home in Great Mills, Maryland, just two weeks after she learned that her son, Ryan, a 24-year-old Army sergeant, had been killed by a bomb in Afghanistan. It was a thick, 9-inch-by- 12-inch envelope from Prudential Financial Inc., which handles life insurance for the Department of Veterans Affairs.

Inside was a letter from Prudential about Ryan’s $400,000 policy. And there was something else, which looked like a checkbook. The letter told Lohman that the full amount of her payout would be placed in a convenient interest-bearing account, allowing her time to decide how to use the benefit.

“You can hold the money in the account for safekeeping for as long as you like,” the letter said. In tiny print, in a disclaimer that Lohman says she didn’t notice, Prudential disclosed that what it called its Alliance Account was not guaranteed by the Federal Deposit Insurance Corp., Bloomberg Markets magazine reports in its September issue.

Lohman, 52, left the money untouched for six months after her son’s August 2008 death.

“It’s like you’re paying me off because my child was killed,” she says. “It was a consolation prize that I didn’t want.”

As time went on, she says, she tried to use one of the “checks” to buy a bed, and the salesman rejected it. That happened again this year, she says, when she went to a Target store to purchase a camera on Armed Forces Day, May 15.

----

“I’m shocked,” says Lohman, breaking into tears as she learns how the Alliance Account works. “It’s a betrayal. It saddens me as an American that a company would stoop so low as to make a profit on the death of a soldier. Is there anything lower than that?”
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Offline josephmission

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Re: Insurers Rip Off Families of Fallen US Soldiers
« Reply #6 on: December 16, 2010, 11:29:39 am »
morning

     wait till they sign them up  for a USDA loan     and find out a unlimited appraisal is stuck to them.