Life insurers are facing broad criticism for profiting from the death benefits of soldiers and other life insurance policyholders even after a claim is supposed to be paid.  Insurers are using so-called “retained benefit accounts” to hold onto payments they owe to families of deceased policyholders. They deposit the funds in insurer-controlled accounts, rather than transferring the payment to a bank or issuing a check to beneficiaries. The practice allows the insurer to hold onto money and continue earning interest on funds they are otherwise required to pay out as claims. Policyholders are told that their benefits are safey tucked away, and they’ll get interest payments in the meantime. Read more…