NYT: A Deepening Debate on Soldiers and Their Insurers

[DeepModem Mom]

A Deepening Debate on Soldiers and Their Insurers
By DIANA B. HENRIQUES

Published: September 8, 2004


In May 2002, a young, unmarried soldier named Michael R. Deuel, serving with the 82nd Airborne division at Fort Bragg, N.C., signed up to pay nearly $120 a month for life insurance that supplemented the much less expensive coverage he had through the military.

But before he shipped out for Iraq, Private Deuel called to cancel some of his coverage because an officer on base "told him he did not need it," according to an insurance agent who served the base. A year later, in June 2003, the 21-year-old soldier was shot and killed while guarding a propane distribution center in Baghdad.

The case of Private Deuel is one of five incidents that some life insurers and their agents have offered as proof that improper meddling by senior officers is preventing young soldiers from getting supplemental insurance coverage before they head for dangerous duty abroad. By their account, thousands of other people in the military - one insurance marketing executive puts the number as high as 6,000 - have had similar experiences and are at risk of sharing Private Deuel's fate. The complaints have led to an investigation by the Government Accountability Office.

But an examination of the five cases in which young soldiers said they were dropping their insurance on an officer's advice and were later killed on duty shows that the issue is not so simple. The insurance being sold to the soldiers included policies that provided little additional coverage at high prices....


http://www.nytimes.com/2004/09/08/business/08military.html

[gulfcoastliberal]

1. Sleazy, disgusting insurance salespeople...

This graf says it all (he was advised crrectly on canceling the policy based on this, IMHO):

In fact, Private Deuel canceled only a policy that would have cost him $100 a month for a death benefit of $32,500, while keeping a $250,000 policy that cost him $18.75 a month.

$100/month for a $32,000 policy? Disgusting!

[htuttle]

2. Jim Hightower was talking about this one day last month

It's really an outrage. The Army is allowing these fly-by-night insurance salemen to participate in on-base mandatory 'financial briefings' where they use high pressure sales tactics on the captive troops. It sounded like a lot of commanders were in on the deal -- probably getting a cut.

And today's commentary is about another government sponsored insurance scam -- this one by Homeland Security:
http://www.jimhightower.com

We're getting fleeced by these people left and right nowdays.