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4 Bumps

So I was listening to NPR on the way to work...

Tell me what you think of this...

when a soldier dies, the life insurance company is supposed to pay out one lump sum (400,000). Well, Instead of paying this out, they've been opening an escrow account (for lack of a better term), giving the beneficiaries check books,
and then paying them a small amount of interest while collecting the much larger amount of interest.

I'll see if I can find the link.

 
lovinangels

Asked by lovinangels at 9:20 PM on Aug. 12, 2010 in Politics & Current Events

Level 39 (112,638 Credits)
This question is closed.
Answers (17)
  • "MetLife and Prudential lead the way in making hundreds of millions of dollars in secret profits every year on money that belongs to relatives of those who die, an investigation by Bloomberg Markets magazine found. Among the people being tricked are parents and spouses of U.S. soldiers killed in battle in Iraq and Afghanistan."
    That was from lovin's link. I heard this on my way to work also, on NPR, I think it was earlier this week. The VA had no idea that it was happening. They made it sound like it was in a bank under your name, however, it was in their own accounts making big interest for them. Just another example of the ways financial corps find any way they can to make money without actually doing anything, or making anything.
    stacymomof2

    Answer by stacymomof2 at 10:12 PM on Aug. 12, 2010

  • This country doesn't treat their soldiers right . This is no surprise. The way they treat war veterans is deplorable. They should have the best health care and be taken care of for the rest of their lives. Greed is everywhere.

    mommom2000

    Answer by mommom2000 at 9:31 PM on Aug. 12, 2010

  • hmmmmm.......sounds to me like they've been taking lessons from Fannie & Freddie on how to scam their clients.
    29again

    Answer by 29again at 10:01 PM on Aug. 12, 2010

  • that just isnt right and doesnt sound like it should be legal. you pay your money into an insurance to take care of your family after you die not to benefit some money grubbing company.
    laura970

    Answer by laura970 at 9:25 PM on Aug. 12, 2010

  • Wow... I am speechless...It's absolutly repulsive that they would even think to do this to these poor families.
    Finkette

    Answer by Finkette at 9:26 PM on Aug. 12, 2010

  • thats just un-american. those poor families should not have to deal with that after losing their loved ones who have given their lives to our country. shame, shame.
    iamcafemom83

    Answer by iamcafemom83 at 9:28 PM on Aug. 12, 2010

  • There are companies that buy insurance for their employees...if teh employee dies, the comaony collects..how in the HELL is that legal?


    Corruption is America's open dirty little secret...


    Everyone trying to screw everyone and CASH in

    sweet-a-kins

    Answer by sweet-a-kins at 10:06 PM on Aug. 12, 2010

  • Having just gone through a death in the family and dealing with all of the paperwork, this makes me ill. The fact that they are dealing with soldiers and trampling the families when they are already dealing with such a loss is just wrong. Hopefully now that this has been exposed there will be legal action to stop it ~ although I won't hold my breath. The company will continue to get away with saying that they make the money available if you ask for it (nevermind that no one should have to ask for it) while they keep it without any insurance or federal guarantee to cover losses that they make (or any share of the profits they make). It's just wrong.
    Farmlady09

    Answer by Farmlady09 at 10:46 PM on Aug. 12, 2010

  • Wow! That is really wrong! No company should be able to get away with that ever.
    SylviaNCali

    Answer by SylviaNCali at 12:49 AM on Aug. 13, 2010

  • That is JUST WRONG! More big business screwing the little guys, AGAIN. And our Govt lets them get away with it.
    vbruno

    Answer by vbruno at 8:07 AM on Aug. 13, 2010

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