We found this story on Military.com’s website and we had to share it. If this is true, it’s a outrage and the company should be held accountable and loose the SGLI accounts and sued heavily from the government.
The country’s oldest veterans service organization is intervening in a class-action lawsuit that accuses Prudential Insurance Co. of America of profiting by withholding lump-sum payments to the families of fallen troops.
The Veterans of Foreign Wars is demanding that Prudential make public all records related to its handling of the government’s Service Group Life Insurance and Veterans Group Life Insurance programs.
The suit, filed with the U.S. District Court in Springfield, Mass., alleges that the company collected interest from unpaid life-insurance benefits by encouraging beneficiaries to leave the money in so-called Alliance Accounts rather than taking lump-sum payments. By investing the money, Prudential made hundreds of millions of dollars, according to the complaint. Click here to read more of this story on Military.com