Insurance

Life Insurers Profit By Withholding Cash From Military Families: Bloomberg

Rachel Slajda | July 29, 2010, 9:31AM

Life insurers -- including Prudential, which provides life insurance for the Department of Veterans Affairs -- keep payouts to families in their own corporate accounts, earning more interest on the money than they give to the beneficiaries.

Bloomberg reports that many life insurance companies send beneficiaries a "checkbook" when they opt to get their money in a lump sum. The companies assure families that the money is safe with them until they need it.

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Topics: Department of Veterans Affairs, Insurance, Miltiary families , U.S. Military