Life Insurance settlements in question to soldiers families.

Met life is being investigated for thier practices in settlements to fallen soldiers families. The issue is retained asset accounts. The death benefit is put into one of these accounts and the famlies get a checking account to write drafts. The money is not given to the families in a lump sum. The death benefit sits in the life insurance company's account and earns interest until the famlies write checks. The insurance company is earning high interests rates on this money and paying the families very little. This arbitrage on differential interest rates is being looked at as ripping off the families. The investigation is continuing. I am upset about this because our industry is responsible for putting people's lives back together. If this is the case then Met Life is being derilict in it's duties. Though retained asset accounts are commonly used by life insurance companies, they should be at the decision of the families, not the insurance company. If the families want settlements in a lump sum then the company should pay. No questions asked. That is what the life insurance policy that was paid by premiums, guarantees.  Until next time know your risks and be careful out there. K

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