NPR had an article this week about insurance companies paying out death benefits to family members, to the beneficiaries of life insurance policies.
It seems, that when you get death benefits from a Life Insurance company, did you know that they put the money into an account and give you drafts off your own money, keeping the interest earned as profits for themselves? But that is your money, your earned interest.
They are not like a bank, mind you, insurance companies have the money set aside for you so don't have to worry about a run on the banks if everyone wants to suddenly do this. Which won't happen, but that doesn't mean some of us cannot demand to be recompensed for our loss through their greed. I know, we all need insurance and it is a great thing in many ways. But I also know that in many other ways, insurance is a form of institutionalized, legalized blackmail. Or gambling, where as always, the odds are skewed purposely in the favor of the house.
From what this NPR article implies, insurance companies have been ripping people off legally for so many years, that now it is simply invisible to everyone.
And of course, they deny it...all. Such a surprise. Yes?
NPR
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What can one say to these wild, idiotic statements. No money is kept aside, if so how can they pay interest more than banks?
ReplyDeleteIf you too want to profit and have life insurance, then take out a policy with bonus options, my friend.