Insurers Cling To Beneficiaries’ Money

Palisades Hudson Financial Group LLC ^ | August 3, 2010 | Larry M. Elkin

[TwoOverhill]

Imagine that a man walks up to you with a proposal. He’d like you to lend him a large sum of money, possibly most of your worldly wealth, at an interest rate of less than 1 percent. And then he says yes on your behalf.

In an excellent piece of reporting by David Evans, Bloomberg Markets magazine last week drew attention to the fact that many insurance companies are effectively doing just that. Instead of sending checks to the beneficiaries of life insurance policies, including relatives of soldiers killed on the battlefield, companies like Prudential and MetLife are sending IOUs in the form of “checkbooks.”...

[Ronin]

Why am I not surprised. The bright boy that came up with this idea will go far.

[newheart]

Soon enough the Dems will take this approach to the Inheritance tax. Instead of ‘taxing’ your inheritance they will simply confiscate the whole thing and give you a ‘checkbook.’ But don’t count on getting an interest rate as generous as 1%.

[ROTB]

Just write a monster check to your investment plan the day you get this “checkbook”.

Simple.

[CygnusTheSwan]

Soon enough the Dems will take this approach to the Inheritance tax. Instead of ‘taxing’ your inheritance they will simply confiscate the whole thing and give you a ‘checkbook.’ But don’t count on getting an interest rate as generous as 1%.

Let's take this one step further:
Your paycheck is placed in a government created account, from which they draw whatever taxes are due, and you get whatever remains, using it to write checks and make debit card purchases, all under the watchful eye of 'the authorities'.

[jocon307]

I think this is nothing new.

[tommyboy]

Andi Boi Cuomo’s “cause d’jour”. He is going to make a great Governor.