Posted on 09/16/2010 11:40:24 AM PDT by pabianice
“Prudential held $662 million of survivors’ money in its corporate general account as of June 30, according to information provided by the VA. Prudential’s general account earned 4.2 percent in 2009, mostly from bond investments, according to regulatory filings. The company has paid survivors holding Alliance Accounts 0.5 percent in 2010.”
Sounds like it should be the other way around. Prudential should get a 0.5 percent handling fee, and the beneficiaries should get the other 3.7 percent interest on their money. This would be amenable. I get having a pool of money, garnering interest too the survivors benefit, but this blatant profiteering is beyond the pale.
Easy to get around this. Just write a check for the total amount in the policy payoff account to your own bank(s).
The Prudential gets NOTHING, and your money is secured.
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