Many commercial insurance companies (servicing SGLI beneficiaries) have been notifying beneficiaries that their death benefit proceeds are being placed into a separate bank account. In most instances, their accounts are being held in a general corporate investment account, earning investment income for the benefit of the company, while the Survivors receive uncompetitive interest rates.
AAFMAA does not have retained asset accounts. All funds are always invested for the benefit of members or their survivors. We invest settlement amounts for the benefit of the survivors. Any income after expenses is always returned to the members or their Survivors.
As a pure non-profit mutual association, any income after expenses goes to members or beneficiaries in higher reserves, cash values, partial premium refunds or higher death benefits.