Investigate Insurance Companies Scamming Vet Families
It has come to light that Prudential insurance has been holding on to payments earmarked for the families of deceased service members and collecting interest on their money. In turn they have paid the families a fraction of that interest. We are asking Congress to hold hearings to examine why this is happening and how we can stop it from happening in the future.
We have recently discovered that Prudential insurance has been holding on to benefits that were supposed to be paid out through the SGLI (Servicemembers Guaranteed Life Insurance) program. All service members and their families depend on SGLI to provide necessary life insurance benefits to deployed service members because most insurers will not provide coverage to such a high risk group.
In 1999 a change was made that allowed insurers to put funds into what is called an "alliance account", instead of issuing a lump sum check to the beneficiaries. The insurers then invest these funds into other financial instruments earning typically between 4-5%. In turn they pay the beneficiaries about 1% and keep the spread. This is nothing less than gambling with money owed to the bereaved families of our fallen heroes. It is disgusting, reprehensible, and needs to stop.
We the undersigned demand that Congress hold hearings to examine why this practice is happening, how to stop it and how to recoup the money that has been earned on the backs of survivors of the fallen.
In 1999 a change was made that allowed insurers to put funds into what is called an "alliance account", instead of issuing a lump sum check to the beneficiaries. The insurers then invest these funds into other financial instruments earning typically between 4-5%. In turn they pay the beneficiaries about 1% and keep the spread. This is nothing less than gambling with money owed to the bereaved families of our fallen heroes. It is disgusting, reprehensible, and needs to stop.
We the undersigned demand that Congress hold hearings to examine why this practice is happening, how to stop it and how to recoup the money that has been earned on the backs of survivors of the fallen.
Paid for VoteVets Political Action Committee. Not authorized by any candidate or candidate's committee. VoteVets Action Fund is a 501(c)(4) organization which primarily focuses on nonpartisan education and advocacy on behalf veterans and their families. VoteVets Political Action Committee is a federal political committee which primarily helps elect Iraq and Afghanistan war veteran candidates and educates about veterans and military issues aimed at influencing the outcome of the next election.