Wednesday, July 28, 2010

Life-Insurance Companies Have Figured Out A Way To Hold Onto Death Benefits Owed To Bereaved Military Families


Fallen Soldiers' Families Denied Cash as Insurers Profit -- Bloomberg

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.

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Update: Insurers said to hurt troops' families -- Politico

My Comment: As I tell everyone that I know .... when it comes to money, always read the small print .... even if there are pages and pages of the stuff.

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