U.S. military personnel reportedly misled on life insurance purchases

Oct 07, 2011

Military life insurance regulations may need to be more closely monitored, according to a report.

After a law was created to protect U.S. soldiers from salespeople trying to mislead them with life insurance sales, a Pentagon report finds that there are still problems.

The U.S. Inspector General's Office found that insurance agents have used prohibited sales practices both on and off of U.S. military bases to try to get military personnel to buy insurance they may not be able to afford. The report also found that military officials failed to enforce existing policies that limit solicitation of military personnel.

"Although [The Department of Defense] has taken some corrective actions and some states have initiated actions against insurance agents and companies, junior enlisted service members continue to purchase high-cost life insurance products considered unsuitable for most military personnel and which may threaten their financial stability," Gordon S. Heddell, Pentagon Inspector General, wrote in the report.

One example of a Marine at Camp Kisner who said two agents approached Marines while they were in formation and said they would provide the soldiers information about military benefits if Marines gave them contact information. Marines were not allowed out of formation until they provided information, the news source said.

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