Survivors of soldiers killed in combat are discovering horrible truths about the life insurance policies their soldiers held. Instead of being given lump-sum payouts, these survivors are given checkbooks from the life insurance company to retained-asset accounts holding the money . These accounts are held by various insurance companies and those companies are using these accounts to make money off the deaths of U.S. soldiers.
Many survivors are under the mistaken belief the money from their soldiers’ life insurance policies are sitting in a bank, which is insured by the FDIC. In reality, the money is in a specialized account, managed by insurance companies, and earning higher interest than what they pay out to survivors.
Prudential and MetLife are the two largest life insurance companies in the U.S. and neither separates their death benefit money into separate accounts. Survivors are then told their money is in a secure account. Metlife’s communication to survivors includes language stating the money in the account is guaranteed by MetLife. What survivors are not told, however, is Metlife’s guarantee is “subject to the financial strength and claims-paying ability of MetLife.” Further, the account is not insured by the FDIC, and is Metlife’s corporate investment account.
Essentially, these life insurance companies are keeping money they are not entitled to keep, and then placing that money in an account used for investments and collecting high interest for the insurance company’s benefit. At the same time, they are paying out money to survivors at interest rates lower than what they would get if the money were placed in any bank’s saving account and keeping the majority of the actual interest earned for themselves.
These companies are profiting off the death of U.S. soldiers. The entire situation is flawed and will continue to operate the exact same way until new regulations are put in place denying insurance companies the ability to profit in such a way.
If you are a disabled veteran who has been denied disability compensation or have not yet applied for benefits from the VA, contact Veterans Help Group. You may be entitled to certain programs and benefits so contact our veterans disability rights firm today.