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August 18, 2010 - People nationwide were outraged over discovering the details of how Prudential Insurance handles paying out life insurance policies, which includes those of soldiers and veterans. In an effort to defend their position, Prudential is meeting with military and veterans organizations in an attempt to explain their program.
According to reports, Prudential holds cash payouts for life insurance policies in an interest-bearing account. The bulk of the interest being accrued in the account benefits the insurers. Further, when the cash was placed in that account, it was outside of the protection of the Federal Deposit Insurance Corporation (FDIC). Apparently this is a common practice in the insurance industry.
Prudential is now struggling to get their side of the story out and clarify what they believe are "misperceptions" about how they handle the life insurance policies; especially with military families. The House Oversight Committee has launched an investigation into the handling of the accounts and the distribution of the benefits to deceased veterans' families.
Investigators will look into why beneficiaries are not just sent a check for the total amount owed. Prudential "seniors" met with the investigators to tell their side of the story, but further investigations and questioning will be necessary to get to the heart of the matter.
The Department of Veterans Affairs (VA) has since contacted the families on the accounts to let them know they can move their lump sum money to any bank they choose. This has all resulted in the VA investigating if the program needs to be changed. Meetings with Prudential representatives have still left some questions unanswered.
Soldiers can return home with a number of conditions, injuries, and aggravated preexisting conditions. If you believe you have a service-connected physical or psychological injury you may be entitled to Veterans’ Disability Compensation.
At LaVan and Neidenberg, we are determined to secure veterans their rightful disability compensation and disability rating. We wrote this book for you! In it you will find valuable tips on how to navigate the claims process and avoid common pitfalls. Request your FREE copy today!
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