Fallen Soldiers' Families Denied Cash as Insurers Profit

[f.2]

link

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...

[ick]

Wow is this story just doesn't add up. This is standard operating procedure for every life insurance company I have ever dealth with. In fact, I think it is THE LAW of most states that they have to distribute funds in this manner to exaclty this type of account. Prudential CANNOT choose an FDIC bank FOR YOU. They don't show up at the funeral with a suitcase full of $400,000 either. They ALL put the proceeds immediately into a money-markety style account.

New procedure in the last 10 years my butt. I recall death benefits being paid in this way with one company since the 70s. Typical journalism for you.

Most people with half a brain immediately DO something with the funds.... pay off a mortgage, or transfer all or part of the funds in something more appropriate than a money market fund. I have YET to have ONE person try and give one of these checks to a furniture outlet to purchase... a couch? What is next, is she going to try and pay her $54.38 telephone bill with her $400,000 money market account? Who does that?

Let me ask you guys, do you have a habit of paying for small items from your money market account? I bet not. I don't.

Get a clue lady. Most retail locations look over a check closely... and beleive me, a lot of cashiers cannot appreciate the visual impact of a money market account. When in doubt or something doesn't seem right.... DON'T take the check. THIS is the type of training your furniture store salesman receives about customer's checks.

The DAY she got this checkbook she could have IMMEDIATELY taken it to her local bank and opened whatever account she wanted. Heck, she could have written the check out to her BOYFRIEND for the whole amount if she wanted to.

Boy this dishonest journalism is really starting to irritating me.

[f.2]

Ah, the we've always done it this way defense. Bullshit.

[Blaubart]

I'm with ick on this one.

Whatever happened to the phrase "read the fine print". It seems like nobody does that anymore. Half the stuff I hear people bitching about wouldn't be a problem in the first place if only they had read the fine print...

The scary thing is that seeing as most people don't read everything in something as important as a $400,000 insurance policy settlement, why the F--k would Americans read this entire article and use their brains to figure out that this woman hasn't been "Denied Cash" by anyone except a couple of merchants that didn't know how to handle these "checks". Now these ADD afflicted couch potatoes are going to tell all their friends on FaceBook how the insurance companies are screwing the families of our fallen soldiers.

I've got news for you all. Insurance companies exist for one reason: to earn a profit. What's next? An article that says some unscrupulous bank reinvested the $400,000 that she finally deposited and is now earning 6% interest on her money while only paying her 2%? Oh Noes!!! The Horror!!!

[f.2]

1 percent is actually not bad for a savings account nowadays. So she still has the $400,000.00? She can still turn that into cash?

And who'r you calling a couch potato?

[f.2]

Most people with half a brain immediately DO something with the funds...

She probably let that ole greiving her son's death while serving his country get in the way of her undivided attention to the matter.

[f.2]

Whatever happened to the phrase "read the fine print". It seems like nobody does that anymore. Half the stuff I hear people bitching about wouldn't be a problem in the first place if only they had read the fine print...

Damn those armed services widows and parents of dead children. WTF? Can't they just get past their loss for two seconds to read the fine print?

[Cheetah]

Damn those armed services widows and parents of dead children. WTF? Can't they just get past their loss for two seconds to read the fine print?

Damn the inability to get over her loss to read the details of how she becomes responsible for $400k. Apparently she got over the loss long enough to try to buy a bed. A camera even, too.

This is bullshit. She's upset that they didn't segregate the money they owed her, but they gave her complete access to. They're "earning a buck on the death of soldiers" and it's wrong. No, F--k you. They're earning a buck on the money they own, they're giving her access to the amount that she is entitled to, and even paying her interest on it, which they don't have any obligation to do. They're an insurance company, all those policies being paid go into an account somewhere to fund the payouts of policies that require that. Yeah, service members pay their own SGLI policy, it's not provided by the government for free. The money we pay for our insurance sits in an account and is distributed out to the beneficiaries as needed. What does the insurance company do while it sits there? They collect interest on it, to increase the number of policies they're able to pay out hopefully, but even if they're turning that interest as profits back into the company, who cares? It's business, it's capitalism, that's how s--t works. It's not like Sgt. Smith is KIA and suddenly CEO Johnson is collecting 3.8% of his death gratuities in interest, while Smith's family only sees 1% increase.

If she's too fucking lazy to take responsibility for her money then it's her fault. If your employer pays you, they expect you to cash your check, not leave it floating in their account until you decide you need to cash it. I wouldn't feel bad for her if she left her money tied up in the insurance company's corporate holdings and the company went bankrupt and left her flat-ass broke, she should've thought about where her money was sitting. $400k is a lot of money to most people, you'd think it'd strike a chord that you just MIGHT want to consider the security of that money.

To expect the insurance company to open a bank account for you and deposit your money into it, or to ask you where you'd like your money wired, or any other alternative is naive. They gave her complete access to the money she owned, and with that the power to do whatever she pleased with it. They even provided her with the details regarding the current situation of her money, she just "overlooked it". If you want your 400k put into a CD, sweet, go find yourself a bank and transfer your funds out of the insurance company's account and into your own. If you want it in your checking account, I'm sure your bank can handle that just as easily. To leave it somewhere on good faith, without considering the details is possibly the most ignorant option you could choose. I hope this lady blows half of her money trying to sue the insurance company and fails miserably.

She seems to be handling the loss of her son pretty well to handle the publicity involved in bringing this scandal to public light. Oh wait, who was it we were accusing of using the death of soldiers to turn a profit?

[f.2]

Damn the inability to get over her loss to read the details of how she becomes responsible for $400k. Apparently she got over the loss long enough to try to buy a bed. A camera even, too.

This is bullshit. She's upset that they didn't segregate the money they owed her, but they gave her complete access to. They're "earning a buck on the death of soldiers" and it's wrong. No, F--k you. They're earning a buck on the money they own, they're giving her access to the amount that she is entitled to, and even paying her interest on it, which they don't have any obligation to do. They're an insurance company, all those policies being paid go into an account somewhere to fund the payouts of policies that require that. Yeah, service members pay their own SGLI policy, it's not provided by the government for free. The money we pay for our insurance sits in an account and is distributed out to the beneficiaries as needed. What does the insurance company do while it sits there? They collect interest on it, to increase the number of policies they're able to pay out hopefully, but even if they're turning that interest as profits back into the company, who cares? It's business, it's capitalism, that's how s--t works. It's not like Sgt. Smith is KIA and suddenly CEO Johnson is collecting 3.8% of his death gratuities in interest, while Smith's family only sees 1% increase.

If she's too fucking lazy to take responsibility for her money then it's her fault. If your employer pays you, they expect you to cash your check, not leave it floating in their account until you decide you need to cash it. I wouldn't feel bad for her if she left her money tied up in the insurance company's corporate holdings and the company went bankrupt and left her flat-ass broke, she should've thought about where her money was sitting. $400k is a lot of money to most people, you'd think it'd strike a chord that you just MIGHT want to consider the security of that money.

To expect the insurance company to open a bank account for you and deposit your money into it, or to ask you where you'd like your money wired, or any other alternative is naive. They gave her complete access to the money she owned, and with that the power to do whatever she pleased with it. They even provided her with the details regarding the current situation of her money, she just "overlooked it". If you want your 400k put into a CD, sweet, go find yourself a bank and transfer your funds out of the insurance company's account and into your own. If you want it in your checking account, I'm sure your bank can handle that just as easily. To leave it somewhere on good faith, without considering the details is possibly the most ignorant option you could choose. I hope this lady blows half of her money trying to sue the insurance company and fails miserably.

She seems to be handling the loss of her son pretty well to handle the publicity involved in bringing this scandal to public light. Oh wait, who was it we were accusing of using the death of soldiers to turn a profit?

more fine print

[ick]

When an inusred person dies the insurance company has an obligation to make the entire death benefit available as soon as possible.

Not only did they DO that, they also gave her interest on her money AND made it as convenient as humanly possible through money market style checks.

It is not the insurance companie's obligation to MAKE her handle her money wisely.

Just more evidence of a "it is not my fault, do everything for me" attitude. TAKE PERSONAL RESPONSABILITY and quit with the BLAME GAME.

[f.2]

lol Oh look. She tried to buy a mattress. She's over her grief.

[ick]

Here is the title of the article... and this thread:

Fallen Soldiers' Families Denied Cash as Insurers Profit

Were fallen soldier's families denied cash? ABSOLUTELY NOT. They had access to the entire volume of funds just DAYS after the unfortunate death of their loved one.

Some furniture store was uncomfortable accepting a money market style check for a furniture purchase.... so the families are denied cash?

This article is absolute bunk STARTING with the title... the title is a complete LIE.

Way to hijack the grief from fallen soldiers and a furniture store's bad decision to justify the further expansion of banking regulation where it is not necessary. No wonder we have such dire problems.

[bakerjw]

Personally I'd have gone to my bank and written a check to myself to deposit into my account. I'd then use my Visa to make purchases and transfer from my bank to my CC as needed. Pretty cut and dried imho.

[f.2]

lol The Silencertalk insurance lobby is alive and well.

The VA is looking into this and I'd bet they change the default payment method for SGLI families of fallen Veterans.

[ick]

lol The Silencertalk insurance lobby is alive and well.

The VA is looking into this and I'd bet they change the default payment method for SGLI families of fallen Veterans.

b. s. It is not an insurance lobby, it is common sense.

Change to what? The day of the funeral "Here is a check for the whole death benefit. You better cash it right away because we aren't giving ANY interest." You want them handed a suitcase of cash?

As it stands now they GET that check AND they get interest immediately. You want to give them 2% interest instead of 1%? What, should they get 18% interest forever or as long as they want and don't use the funds?

What a bunch of "fake complaint" if you ask me.... over nothing.

[f.2]

Here is a check for the whole death benefit.

That would work.

[Blaubart]

What kind of change do you want to see? No, really. Don't just bitch and moan and point fingers. How would you change the existing system to make it better for everyone involved? Preferably without more government involvement and control, which nobody needs.

Personally, as a veteran who has served my country, I don't see anything wrong with what the insurance company did. Her $400,000 was immediately available to her and it still is today. Actually, she should have $402,000 available to her today. The money market checks do seem like a convenient way to disburse the money. The day those checks arrived, she could have written one check and deposited all of her money into an account of her choice. If FDIC coverage is important to her, she could write separate checks to split the benefits up into amounts less than $250,000 and deposit that money into different accounts, because regardless if the account they placed her money into was FDIC insured or not, FDIC only covers up to $250,000.

[Blaubart]

Here is a check for the whole death benefit.

That would work.

So, today this lady would have $400,000 instead of $402,000. Absolutely wonderful idea! Let's have our trustworthy congressmen draft a law today that requires insurance companies to do just that. I'm quite certain they'd have the full backing of the insurance industry. Keep in mind that this law will probably include a couple billion dollars in unrelated pork just to get it passed.

[Blaubart]

I'm sorry, but this is really starting to get under my skin.

If you really want the government to get involved in this, if you really think it's their responsibility to take care of all the details in this matter, to make sure the insurance company doesn't earn one penny of interest while they are holding her money, then maybe you should vote for Obama in 2012... But with that $400k in her bank account, she'd be ripe for a little "redistribution". Damned if you do, damned if you don't...

[ick]

Here is a check for the whole death benefit.

That would work.

dude THAT IS EXACTLY WHAT SHE GOT. EXACTLY. WHAT IN THE WORLD ARE YOU COMPLAINING ABOUT?!?!?!??!??!?!?!

WOW, I CAN'T BELIEVE YOU JUST TYPED THAT AS YOUR RESPONSE.

[f.2]

dude THAT IS EXACTLY WHAT SHE GOT. EXACTLY. WHAT IN THE WORLD ARE YOU COMPLAINING ABOUT?!?!?!??!??!?!?!

WOW, I CAN'T BELIEVE YOU JUST TYPED THAT AS YOUR RESPONSE.

lol

[Blaubart]

THAT IS EXACTLY WHAT SHE GOT. EXACTLY. WHAT IN THE WORLD ARE YOU COMPLAINING ABOUT?!?!?!??!??!?!?!

WOW, I CAN'T BELIEVE YOU JUST TYPED THAT AS YOUR RESPONSE.

No, the check didn't have her name in the "To:" field, it isn't the same! We don't need people to have options, or choices, or freedom. Not when they're grieving. F--k that! Just cut her a damn check, or better yet, how about we "require" insurance companies to EFT the money into her checking account. I suppose someone would still complain that the full $400,000 isn't covered by the FDIC. So maybe the insurance companies should be required to inform people, IN BOLD PRINT, that the FDIC only covers deposits up to $250,000. And maybe the insurance companies should be required to provide investment counseling too.

[ick]

No, the check didn't have her name in the "To:" field, it isn't the same! We don't need people to have options, or choices, or freedom. Not when they're grieving. F--k that! Just cut her a damn check, or better yet, how about we "require" insurance companies to EFT the money into her checking account. I suppose someone would still complain that the full $400,000 isn't covered by the FDIC. So maybe the insurance companies should be required to inform people, IN BOLD PRINT, that the FDIC only covers deposits up to $250,000. And maybe the insurance companies should be required to provide investment counseling too.

Good response, lol. How about free financial advice at taxpayer expense forever? That would be sweet. In fact, the goverment should tell her exactly what to do with the funds so we can protect her from herself. You know, becuase regulators know best. It is best if we don't have the ability to decide.

back to reality......

After recovering from my shock in reading that......

I will say this, this poor woman's loss can't be compensated by cash. THAT is clear and goes without saying.

However, that does not mean that handing her a check is any different than handing her a checkbook... when the first and only check she writes out can be for the full amount.

They are essentially the same thing. In fact, the checkbook with interest is better in almost every way... because it gives her the most options possible. It is BETTER than a huge check payable in her name. It has more flexibility.

[Cheetah]

dude THAT IS EXACTLY WHAT SHE GOT. EXACTLY. WHAT IN THE WORLD ARE YOU COMPLAINING ABOUT?!?!?!??!??!?!?!

WOW, I CAN'T BELIEVE YOU JUST TYPED THAT AS YOUR RESPONSE.

Thank you ick, this post saved me from a rant.

f.2, have you seriously even READ this story and THOUGHT about it? Even if I try to take an "objective" viewpoint, I can't find ANY footing for this cooky bitch, and I'm actually upset to hear the VA is wasting their time on it when it could be better spent accomplishing something that actually HELPS families of fallen servicemembers.

[f.2]

Thank you ick, this post saved me from a rant.

f.2, have you seriously even READ this story and THOUGHT about it? Even if I try to take an "objective" viewpoint, I can't find ANY footing for this cooky bitch, and I'm actually upset to hear the VA is wasting their time on it when it could be better spent accomplishing something that actually HELPS families of fallen servicemembers.

F--k those SGLI recipients. We've got a business to run.

Prudential will cave to save this lucrative government contract.