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Post Info TOPIC: Making a profit on soldiers' death benefits
SELLC


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Making a profit on soldiers' death benefits
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Why are large life insurance companies profiting from billions of dollars they hold on behalf of the families of fallen military service members?

Bloomberg Markets magazine senior writer David Evans posed that question in an article in its September issue. The article, which took a close look at practices at Prudential Financial, has sparked sharp criticism from Cabinet members, reform proposals from U.S. lawmakers, and a fraud investigation by the New York Attorney General.

The U.S. Veterans Affairs Dept. and the National Association of Insurance Commissioners say they are reviewing military life insurance arrangements.

"It's disgraceful on the part of insurance companies," Senator John McCain (R-Ariz.), a onetime prisoner-of-war in Vietnam, said in an interview on Bloomberg Television. "We'll obviously have to be looking into it."

Under scrutiny are so-called retained-asset accounts. More than 100 carriers use the accounts to earn income on $28 billion owed to beneficiaries. New York-based MetLife, the biggest U.S. life insurer, retains about $10 billion and was among the carriers subpoenaed by Andrew Cuomo, the New York Attorney General.

Many life insurance companies suggest to beneficiaries that as an alternative to taking a lump-sum payment of death benefits, they leave the bulk of the policy proceeds with the carriers.

The accounts were set up for beneficiaries such as Cindy Lohman of Great Mills, Md. Her 24-year-old son had been killed by a bomb in Afghanistan. Prudential and the other insurers give the recipients limited checkbook-like access to the funds and pay modest interest.

Meanwhile, the carriers can invest the money, obtaining a far higher return than what they offer to beneficiaries. Families often receive misleading guarantees about the safety of the accounts, which are held in corporate coffers, not in federally insured banks, Bloomberg Markets found.

A half-dozen members of President Barack Obama's Cabinet sit on an advisory council overseeing life insurance for military service-members. The last time the council met, in November, none of the Cabinet members attended the annual meeting. Aides accustomed to handling the issue for their agencies go as representatives.

http://www.msnbc.msn.com/id/38629691/ns/business-bloomberg_businessweek



-- Edited by SELLC on Monday 9th of August 2010 09:03:24 PM

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That's true no matter who is president

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SELLC


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Hey PowerStroker, you are aware that Obama is President arent you?

If he wasnt running this nation into the red a light speed maybe none of these people would be worried about their money! As it stands things arent looking good.

I can't blame them, if it were my money I sure as hell wouldnt want it sitting in the coffers of the insurace companies! Would you?



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Members of the cabinet are always on that committee regardless of who is in power.

Must be a slow news day huh?

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SELLC


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How much money you got in the bank PowerStroker?

Let's just pretend that you have under $10,000 in liquid savings. Let's say you inherited $10 Million, would you put it in the bank? Would you invest it into insurance companies?

The only thing slow today is your answers to the questions. 

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maybe ask questions worthy of a response instead of dumpster diving for news as if it's Mercedes parts.

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Does it bother you that for the last 10 years the only new parts I have had to buy for my Mercedes is limited to Oil Filters, Oil and Gasoline?

I'd tell you about how I collect even old brake pad's with more than 50% left on them so that when mine wear down I can just slide in a set and be good for another 10K.

Or maybe Ill tell you the story about how my Oil filters and Oil are made here in the USA?

Aw shit, what does it matter to you... You don't drive a Mercedes otherwise you would know that people don't throw away Mercedes parts. Had you not been a Ford customer for so long you might understand that some companies at one time made parts to last a lifetime, rather than just 100,000 miles.

Getting back on topic, if I was in the military and was killed in the line of duty I would be rolling over in my grave thinking my family was being cheated out of money that I died for!

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I would hope that if you gave your life, it would be for something more noble than money.

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SELLC


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Even in death "Money talks and bullshit walks".

Freedom aint free, I would like to think along with my dead body, my loved ones would see some compensation for their loss.

I am sure that what the Army pays troops, the fallen had already proven they were doing the job for a cause more noble than money. 

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Agreed Rex, We should systematically dismantle ALL private insurance companies and replace them with a government program administered by people we freely elect.

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ohmygod.gif
Maybe we can get the Government to wipe our asses when were done taking a shit also?

I'm all for that!

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