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Insurance Companies – Death Benefits – another ripoff

August 3, 2010

I don’t know about you, but this latest scandal from the insurance companies gets me so mad, I could simply spit nails.   If you haven’t seen this, here’s a link to a followup on Bloomberg, and a link to the original story in the Washington Post.   Insurers are holding billions of dollars in federal death benefits, in interest bearing accounts.  Now, the interest to the survivor is only a 1/2%, but the interest to the insurance companies?  Oh, that’s at 4%, more or less.  AND, to add to the wonderfulness of it all, the accounts aren’t FDIC insured – so if the company goes bust (and like that hasn’t happened recently? ) the money goes – poof.

To rip off the widows or the surviving parents, or the children, of the servicemembers who died in the service of their country – is about as low as it gets. Thank you to SecDef Gates and AG Cuomo and the VA, and a huge thank you to the WaPo and Bloomberg for bringing this to the attention of everyone.

A phone call to your congressperson, registering your outrage – could help galvanize them into putting pressure on these companies.


2 Comments leave one →
  1. August 3, 2010 2:01 pm

    LAW, you are getting conned.

    The bait of “fallen soldiers,” combined with evil financial companies, has sucked you in, like nearly everyone else. The real issue here is Big Press and the government’s reaction to badly written stories like this one. A whole lot like what we just saw two weeks ago with Shirley Sherrod. People of a given political persuasion just can’t wait to validate something that turns out to be horribly out of context.

    The story you refer to is close to being a hatchet job; made all the worse by the fact it’s put out by a reputable news organization, Bloomberg.

    Before you pull an ad hominem attack on me, check my blogpost and my website and my credentials. Then come back and tell me what you think.

  2. LAW permalink
    August 4, 2010 7:10 am

    thank you for your comment. Your post made interesting reading.

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