if this is really a problem, then the Dept of Veterans Affairs merely needs to issue a bulletin the the contracting insurance companies that there is a new procedure: the beneficiary needs to have the option of taking a lump sum or the “checking” account.
personally, I see absolutely nothing wrong with the way it has been done. I have sold life insurance for a very long time and this procedure has been very well received by my clients. Grieving widows and loved ones of a deceased person aren’t going to be thinking about getting the best rate of return on a large sum of money, and this metod solves some of their problems.
All government agencies need to treat our military personnel and their families better. Not only do they need a choice in how to receive the life insurance but they need better medical treatment when they come home; for the service personnel and their families. PTSS is very real and for a long time the military did not admit or treat the symptoms of this illness. They are just now getting around to seeing a problem that has been around since before Vietnam. i.e. agent orange – the goverment said there was nothing in it that could harm our troops —wrong!!!! Let’s always treat the military and the families with thanks, respect and provide for them.
P.S. Did you know that some enlisted personnel (even of those serving overseas and who have families) are being paid below the poverty level and have to use food stamps to eat?
When the beneficiary is given the proceeds in a “in house checking account”, that accrues better interest than any bank I know of, they are told they can write a check for the total amount and deposit into their own account which earns less interest. They have many options how to receive death benefits. Most people that loose a loved one should hold the money for a while before spending all of it. The total control accounts allows for a small safety net in place to help prevent a beneficiary from spending all the proceeds without giving time to think thoughtfully about what they should do with that money. Also large insurance companies such as MetLife in my opinion offer better protection than Government FDIC any day. I wonder if there is actually a news story here at all or just a way for politicians to look for votes in the upcoming election.
As a former military wife and current mother of a service member, I can tell you from personal experience how bad this practice is. These large insurance companies are taking advantage of some of the most vulnerable members of our society and their surviving families. First, the service doesn’t give the option whether you purchse this insurance or not – there’s not many policies that cover “acts of war.” So don’t give me any baloney about “choose another carrier.” Second, most of the people receiving benefits are either young wives with little children to support, or poor uneducated (or undereducated) surviving parents. They don’t need IOUs, and FDIC-insured is much better security than a stock company. (C’mon, really?) These are the young men and women that risk all to defend our freedoms, and you’re okay with the insurance companies making what is essentially blood money? The beneficiaries should get a check, period. Let them make the decision, good or bad, about what to do with it then. We don’t want a nanny state when it comes to the government, but the comments posted seem to say its okay when it comes to company control. Bottom line, these are our enlisted serving and dying in countries that we can’t even spell – don’t make it worse by allowing companies to continue to profit from their deaths.
Banks also make more interest on your savings/checking and any other account you may have then you do. The money in banks is traded overnight in the currency market. Your money in the bank is used by the banks to make more money for the banks.
Once you review it, there are obviously issues when a check is not honored by the company and these should be addressed immediately.
I too am ok with the concept as most life insurance companies offer this and we have found it well received in the past. Our beneficiaries have never had an issue in obtaining their money.
No, the accounts are not FDIC insured but that is limited to $250,000.
Also,in our state, as long as the proceeds are held by the insurance company, they are protected from the claims of creditors.
I do agree, cash should always be an option but do not expect the banks to pay you more that what the insurance companies offer. We should remember anything, including the interest rate is negotiable.
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if this is really a problem, then the Dept of Veterans Affairs merely needs to issue a bulletin the the contracting insurance companies that there is a new procedure: the beneficiary needs to have the option of taking a lump sum or the “checking” account.
personally, I see absolutely nothing wrong with the way it has been done. I have sold life insurance for a very long time and this procedure has been very well received by my clients. Grieving widows and loved ones of a deceased person aren’t going to be thinking about getting the best rate of return on a large sum of money, and this metod solves some of their problems.
All government agencies need to treat our military personnel and their families better. Not only do they need a choice in how to receive the life insurance but they need better medical treatment when they come home; for the service personnel and their families. PTSS is very real and for a long time the military did not admit or treat the symptoms of this illness. They are just now getting around to seeing a problem that has been around since before Vietnam. i.e. agent orange – the goverment said there was nothing in it that could harm our troops —wrong!!!! Let’s always treat the military and the families with thanks, respect and provide for them.
P.S. Did you know that some enlisted personnel (even of those serving overseas and who have families) are being paid below the poverty level and have to use food stamps to eat?
When the beneficiary is given the proceeds in a “in house checking account”, that accrues better interest than any bank I know of, they are told they can write a check for the total amount and deposit into their own account which earns less interest. They have many options how to receive death benefits. Most people that loose a loved one should hold the money for a while before spending all of it. The total control accounts allows for a small safety net in place to help prevent a beneficiary from spending all the proceeds without giving time to think thoughtfully about what they should do with that money. Also large insurance companies such as MetLife in my opinion offer better protection than Government FDIC any day. I wonder if there is actually a news story here at all or just a way for politicians to look for votes in the upcoming election.
As a former military wife and current mother of a service member, I can tell you from personal experience how bad this practice is. These large insurance companies are taking advantage of some of the most vulnerable members of our society and their surviving families. First, the service doesn’t give the option whether you purchse this insurance or not – there’s not many policies that cover “acts of war.” So don’t give me any baloney about “choose another carrier.” Second, most of the people receiving benefits are either young wives with little children to support, or poor uneducated (or undereducated) surviving parents. They don’t need IOUs, and FDIC-insured is much better security than a stock company. (C’mon, really?) These are the young men and women that risk all to defend our freedoms, and you’re okay with the insurance companies making what is essentially blood money? The beneficiaries should get a check, period. Let them make the decision, good or bad, about what to do with it then. We don’t want a nanny state when it comes to the government, but the comments posted seem to say its okay when it comes to company control. Bottom line, these are our enlisted serving and dying in countries that we can’t even spell – don’t make it worse by allowing companies to continue to profit from their deaths.
Banks also make more interest on your savings/checking and any other account you may have then you do. The money in banks is traded overnight in the currency market. Your money in the bank is used by the banks to make more money for the banks.
You said it so much better than I did.
Yes and the money the insurance company keeps also earns interest for the insurance company.
Here is a link to the artilce I heard on news reports this weekend. http://www.bloomberg.com/news/2010-07-28/fallen-soldiers-families-denied-cash-payout-as-life-insurers-boost-profit.html
Once you review it, there are obviously issues when a check is not honored by the company and these should be addressed immediately.
I too am ok with the concept as most life insurance companies offer this and we have found it well received in the past. Our beneficiaries have never had an issue in obtaining their money.
No, the accounts are not FDIC insured but that is limited to $250,000.
Also,in our state, as long as the proceeds are held by the insurance company, they are protected from the claims of creditors.
I do agree, cash should always be an option but do not expect the banks to pay you more that what the insurance companies offer. We should remember anything, including the interest rate is negotiable.