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Fallen Soldiers’ Families Denied Cash as Insurers Profit

Posted By admin On July 29, 2010 @ 4:58 am In Prison Planet | Comments Disabled

David Evans
Bloomberg [1]
July 29, 2010

The package arrived at Cindy Lohman’s home in Great Mills, Maryland, just two weeks after she learned that her son, Ryan, a 24-year-old Army sergeant, had been killed by a bomb in Afghanistan. It was a thick, 9-inch-by- 12-inch envelope from Prudential Financial Inc., which handles life insurance for the Department of Veterans Affairs.

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.

“You can hold the money in the account for safekeeping for as long as you like,” the letter said. In tiny print, in a disclaimer that Lohman says she didn’t notice, Prudential disclosed that what it called its Alliance Account was not guaranteed by the Federal Deposit Insurance Corp., Bloomberg Markets magazine reports in its September issue.

Lohman, 52, left the money untouched for six months after her son’s August 2008 death.

Full article here [1]

Fallen Soldiers Families Denied Cash as Insurers Profit 270510banner2 [2]

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URLs in this post:

[1] Bloomberg: http://www.bloomberg.com/news/2010-07-28/fallen-soldiers-families-denied-cash-payout-as-life-insurers-boost-profit.html

[2] Image: http://www.homegain.com/housead/homes_for_sale/index?entryid=11502

[3] Bond Insurers Getting Hammered by Credit Default Swaps: http://www.prisonplanet.com/bond-insurers-getting-hammered-by-credit-default-swaps.html

[4] Insurers Push Plans Limiting Patient Choice of Doctors: http://www.prisonplanet.com/insurers-push-plans-limiting-patient-choice-of-doctors.html

[5] U.S. Stocks Tumble, Sending Dow Below 9,000; GM, Insurers Slide: http://www.prisonplanet.com/us-stocks-tumble-sending-dow-below-9000-gm-insurers-slide.html

[6] Insurers pull cover from suppliers to GM, Ford: report: http://www.prisonplanet.com/insurers-pull-cover-from-suppliers-to-gm-ford-report.html

[7] Here is your Obamacare, America: Health insurers raise rates by double digits: http://www.prisonplanet.com/here-is-your-obamacare-america-health-insurers-raise-rates-by-double-digits.html

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