Taking Advantage Of Deceased Veterans' Families

Far too many American soldiers have died in the ridiculous wars in Iraq and Afghanistan.   If you are like me, regardless of what we think of the war, we believe the families of those soldiers who have given their lives should be compensated fully and immediately.   Sadly, it looks like at least one insurance company is failing to do that.

I must tell you up front that I have very little respect for insurance companies.   However, I didn't think they would stoop so low as to take advantage of the families of fallen veterans to make money.   It looks like I was wrong -- nothing is too low for an insurance company.

U.S. law requires that the families of deceased veterans be paid in a lump sum by the insurance company.   The family then can do whatever they want to do with that lump sum payment.   But Prudential Insurance Company isn't doing that unless it is demanded by the family.   They are taking advantage of these families in their time of grief by talking them into leaving the money in an account with the insurance company, and then sending the family some "checks" to access that account when they need to.

They convince these poor families that this is a good deal since they will pay them 0.5% interest to leave the money in that account.   It is NOT a good deal.   The families could more than double that interest by putting the money in a savings account at their own bank.   And what does the insurance company get out of this?   They use the money to earn 4.5% interest for themselves.

The American Legion, with its 2.5 million members, doesn't like this.   They have asked permission of a court in Springfield (Massachusetts) to file a legal brief on behalf of a family in a case pending -- Lucey v Prudential Insurance.   The American Legion says Prudential's "disingenuous practices take advantage of the grieving families of America's fallen heroes.   This procedure is morally objectionable and unlawful.   It should be stopped."

I agree with the American Legion.   This is just another repugnant and odious action by a greedy insurance company.   I hope it can be stopped.   Once a claim has been made, the insurance company should send a check to the grieving family -- without trying to hold on to that money and keep profiting from it.

This is just another example of financial greed being perpetrated against ordinary people by the giant financial institutions.   And its just the kind of thing the Republicans are trying to perpetuate with their policies that favor the rich and the corporations over Main Street Americans.   It would not surprise me if the Republicans come to the defense of this insurance company and its repugnant practices.   After all, they have been voting against the best interests of veterans since President Obama took office.