Angry in the Great White North

From CNSNews:

Anti-war activist Cindy Sheehan recently signed on with a speakers' bureau, and her appearance on the lecture circuit drew mixed reaction Tuesday night, especially from her younger supporters at the University of Maryland.

Sheehan previously told Cybercast News Service that she was not taking money from organizations like MoveOn.org or private financiers like George Soros but that her recent 51-city bus tour was funded by "grassroots fundraising."

She said her contract with Speaking Matters, which has not yet disclosed how much a Sheehan appearance will cost, will help her "finally make some money ...'cause Casey's insurance money's going to run out pretty soon.' "

This mention of the insurance intrigued me, and I've spent some time researching how US service personnel are insured, how that insurance is paid out, and details about the specific situation with the Sheehans using a contact close to the Sheehan family who prefers to remain anonymous.

First, the policy. The default payout used to be $250,000:

Servicemembers on active duty, active duty for training or inactive duty for training and members of the Reserves are automatically covered for $250,000, the maximum amount of coverage, unless they opt out in writing.

This is what Cindy Sheehan, who my contact tells me was the sole beneficiary, would have received.

The payout can be in one of two ways: a lump sum or 36 equal monthly installments. If she is running out of money 18 months after Casey's death, then she must have received the lump sum.

The payout is made to the beneficiary through a special bank account:

As of June 1 [1999], payments are disbursed through a Prudential Alliance Account for most SGLI claims. The account is a personalized interest-bearing account for beneficiaries of group life insurance proceeds of $5,000 or more.

When OSGLI approves a payment, life insurance benefits will automatically be placed in the Alliance Account in the name of the beneficiary. The beneficiary can withdraw all or part of the proceeds immediately or leave the funds in the account to earn interest from the date the Alliance Account is opened.

That means that from the start of the payout, Cindy Sheehan had sole control of the money. The only way Casey's money would have benefited the Sheehan family as a whole is if Cindy Sheehan had written a cheque and deposited it into a family account.

So Cindy Sheehan received $250,000 into an account solely in her name upon the death of her son, and that money has almost run out.

Or has it?

From this past summer, an retroactive increase in benefits:

The $82 billion supplemental legislation signed into law by President Bush May 11 increases maximum SGLI coverage to $400,000 and provides payouts of up to $100,000 for service members with traumatic injuries, explained Stephen Wurtz, the VA’s deputy assistant director for insurance.

The increased SGLI coverage will take effect Sept. 1, and the so-called “traumatic SGLI” benefit, Dec. 1. Wurtz said the legislation directs that both benefits will be retroactive to Oct. 7, 2001.

Retroactive payments to cover the increased benefits for members and their families already receiving benefits will be absorbed by the Department of Defense. So Cindy Sheehan doesn't have to pay a cent to get the extra money. The American taxpayer is absorbing that cost as part of the DoD budget.

This means that sometime after September 1, the Department of Defense, in accordance to a bill signed into law by George W Bush, willl be issuing an additional $150,000 in benefits to Cindy Sheehan.

In fact, my source tells me that there is yet another supplement of $88,000 coming as well, though I haven't identified what that additional benefit is, specifically. It may be that Casey had purchased extended benefits.

In any case, Cindy Sheehan's statement that "Casey's insurance money's going to run out pretty soon" seems to be untrue, on the face of it. Unless she already received the supplement sometime between September 1 and September 28, and spent it before the September 28 interview.

One more thing. Remember Cindy Sheehan's "no taxes" rant?

Sheehan, who is asking for a second meeting with President Bush, says defiantly: "My son was killed in 2004. I am not paying my taxes for 2004. You killed my son, George Bush, and I don't owe you a penny...you give my son back and I'll pay my taxes. Come after me (for back taxes) and we'll put this war on trial."

If she's been living off of Casey's death benefit, she doesn't need to pay taxes:

In general, all VA benefits are exempt from taxation. SGLI proceeds that are payable at the death of the insured are excluded from gross income for tax purposes. (The value of the proceeds, however, may be included in determining the value of an estate and that estate may ultimately be subject to tax.) If SGLI proceeds are paid to your beneficiary in 36 equal installments, the interest portion included in these installments is also exempt from taxation. In addition, delayed settlement interest (interest accrued from the date of the insured’s death to the date of settlement) is also exempt from taxation. You are not required to report to the Internal Revenue Service (IRS) any installment interest or delayed settlement interest that you received in addition to the proceeds.

Just another piece of cynical political theatre to get her supporters all worked up?

"Oh, poor Cindy Sheehan is so brave! Taking on George W Bush and his evil IRS, refusing to pay for the war, and willing to go to jail over it."

Well, maybe not so brave, or so poor, after all.

[Open trackback to the Political Teen and the Mudville Gazette]