by Guest » Wed Sep 19, 2007 04:03 pm
Lincoln Benefit Life
2940 South 84th Street
Lincoln, Nebraska 68501-0469
I signed up for a term life policy 4 years ago that was supposed to be switched to a "whole life" policy after the first year. The way it was explained to me (because I didn't even want to sign up for the term because it was too expensive - $1200) was that after the first year I could switch to the whole life policy which cost $5000 and get a credit for the $1200 for the first year which is what I did. The insurance broker faxed me over the pages on a rush basis after the first year to switch the policy and I faxed them back to her the same day. What I believe was the terms and conditions page had been recopied so many times that you can't even read it. A few weeks later the policy book was delivered to me by the agent. The way she had described the policy was that my money would only grow so according to what she told me I should have $15000 plus interest. What I have now is nothing. I in theory have $12000 because they deduct "costs" and "expenses" - none of which she told me when she was selling me the policy. She told me the reason is because when she was explaining the policy to me her laptop computer wouldn't allow her to show me the costs and expenses. Another feature she failed to tell me about is that I have to be in the policy for 20 years! If I pull out in advance I forfeit $14300. When I received my last statement I didn't understand the costs and expenses and called up Lincoln Benefit to find out what was going on and I found out then for the first time that Lincoln Benefit (my insurance company) no longer sells whole life policies and I had been signed up for an "adjustable flexible" policy. I explained that I had never even heard my insurance broker utter those words and that she had only referred to the policy as a whole life policy. My agent had never told me about costs and expenses and never explained the $14300 default fee if I pulled out before 20 years. She did a bait and switch on me. Lincon's complaint department did an investigation and have said everything is on the up and up and I have no recourse. I was totally lied to and relied on everything she told me about this policy. I was never informed AT ALL about the $14,300 default fee or about the costs and expenses - she simply described my money growing each and every year so by now I would have the $150000 I've put in plus around 5% interest. Lincoln agreed to give me back $5000 if I terminated my policy. However, they kept my remaining $10,000. DON'T DO BUSINESS WITH THIS COMPANY IF YOU WISH TO KEEP YOUR MONEY - THEY ARE THIEVES AND LIARS. I've tried everything I can do to get my money back but it appears I would have to sue them and I just don't know what my chances would be. I work with a law firm and even the lawyers here told me they're unable to understand my policy in full. I depended on Lincoln to explain to me what I was buying and by leaving out vital details I was in fact lied to. A partner at my firm (a very intelligent attorney) told me that even he had been the victim of a similar policy so it can't be just me. I honestly don't know how they can get away with this but it appears they can. I work 13 hours a day as a secretary to support my family and the $10,000 they ended up keeping was two years of my bonuses. This was money I thought I could use in the event of an emergency and now it is all gone.
2940 South 84th Street
Lincoln, Nebraska 68501-0469
I signed up for a term life policy 4 years ago that was supposed to be switched to a "whole life" policy after the first year. The way it was explained to me (because I didn't even want to sign up for the term because it was too expensive - $1200) was that after the first year I could switch to the whole life policy which cost $5000 and get a credit for the $1200 for the first year which is what I did. The insurance broker faxed me over the pages on a rush basis after the first year to switch the policy and I faxed them back to her the same day. What I believe was the terms and conditions page had been recopied so many times that you can't even read it. A few weeks later the policy book was delivered to me by the agent. The way she had described the policy was that my money would only grow so according to what she told me I should have $15000 plus interest. What I have now is nothing. I in theory have $12000 because they deduct "costs" and "expenses" - none of which she told me when she was selling me the policy. She told me the reason is because when she was explaining the policy to me her laptop computer wouldn't allow her to show me the costs and expenses. Another feature she failed to tell me about is that I have to be in the policy for 20 years! If I pull out in advance I forfeit $14300. When I received my last statement I didn't understand the costs and expenses and called up Lincoln Benefit to find out what was going on and I found out then for the first time that Lincoln Benefit (my insurance company) no longer sells whole life policies and I had been signed up for an "adjustable flexible" policy. I explained that I had never even heard my insurance broker utter those words and that she had only referred to the policy as a whole life policy. My agent had never told me about costs and expenses and never explained the $14300 default fee if I pulled out before 20 years. She did a bait and switch on me. Lincon's complaint department did an investigation and have said everything is on the up and up and I have no recourse. I was totally lied to and relied on everything she told me about this policy. I was never informed AT ALL about the $14,300 default fee or about the costs and expenses - she simply described my money growing each and every year so by now I would have the $150000 I've put in plus around 5% interest. Lincoln agreed to give me back $5000 if I terminated my policy. However, they kept my remaining $10,000. DON'T DO BUSINESS WITH THIS COMPANY IF YOU WISH TO KEEP YOUR MONEY - THEY ARE THIEVES AND LIARS. I've tried everything I can do to get my money back but it appears I would have to sue them and I just don't know what my chances would be. I work with a law firm and even the lawyers here told me they're unable to understand my policy in full. I depended on Lincoln to explain to me what I was buying and by leaving out vital details I was in fact lied to. A partner at my firm (a very intelligent attorney) told me that even he had been the victim of a similar policy so it can't be just me. I honestly don't know how they can get away with this but it appears they can. I work 13 hours a day as a secretary to support my family and the $10,000 they ended up keeping was two years of my bonuses. This was money I thought I could use in the event of an emergency and now it is all gone.
Posted: Thu Sep 20, 2007 09:11 am Post Subject: Probably you had applied for a universal policy!
My friend, I have sincerely gone through your problem & I have good reasons to believe that you had been enrolled for a universal life policy rather than a whole life policy because in the whole life policy even though you get a deferred tax-cash value benefit (as is similar to an universal life policy), you would also get benefits like the flexible premiums facility as well as the adjustable death benefit. So knowing about the nature of the policy benefits that you're talking about I certainly feel that you have the universal policy. Juanita
Posted: Thu Sep 20, 2007 09:30 am Post Subject: how it all counts
Yes, its true that the 'adjustable' & 'flexible' clauses would be associated with a universal life policy which is only identical to a whole life policy in its saying that it covers you for the entire life, offer the death benefit to your dependents & stores a cash value. But you must understand that the UL is quite different from the WL when it comes to the benefits that it offers in the form of a relaxation to adjust your premiums or say the death benefit depending upon your insurance requirement.
stay in touch,
Corpses77
Posted: Thu Sep 20, 2007 10:06 am Post Subject: an explanation..!
Well, my friend if yours is a flexi-universal policy then you're certainly in an awful state I must say. It is undoubtedly a more complex policy than both of these TL (the one that you were in) or WL. You needed to be aware of all the drawbacks of such a policy before you'd have signed in. You could have joined any insurance forum before taking up any insurance policy as the forum members could have analyzed before you the very pros n cons of a policy or say a carrier. The UL is certainly more costlier, it ensures a rate increment as you become older & the worse part of the story is that the much talked-about death benefit is proportional to the cash value storage.
You'd come across a line like the following with most of the policies:
*Cash values are subject to market risks, including possible loss of the principal amount invested.
So, you can understand as well, how important it is today to weigh the risks associated with a policy, the hidden costs & the intentions of the carrier before taking up a policy. You can easily understand how the surrender value & the death benefits would be adversely affected once you nullify such insurance policies or loans. Once you withdraw your name from such financial bondages you are bound to face a whole lot of fees & penalties. Anyways, I can at the most hope that you'd win the last battle! Regards, Fatman
Posted: Thu Sep 20, 2007 11:58 am Post Subject:
Oh, gbarney04, I am so very sorry.
All I can offer, (other than my sincerest sympathy/empathy for your situation), have you contacted your states Department of Insurance and filed a complaint? They also will have records (many are accessible/viewable on their sites), of all complaints filed against this company.
Thank you for putting out the word on this company, I wish that I personally could offer more assistance. There are a few other regular posters that have vast knowledge regarding life products, (my field is property and casualty) and hopefully will weigh in.
Come on, now how is this helpful/productive or positive, she knows this already,and am sure she wishes she had.
You could have joined any insurance forum before taking up any insurance policy as the forum members could have analyzed before you the very pros n cons of a policy or say a carrier.
. You probably didn't mean it that way, but comes off pretty critical, and kind of kicking her while down I think, (which is unlike prior posts from Fatman, I must admit)Posted: Thu Sep 20, 2007 01:05 pm Post Subject: Sorry if you're hurt !
Hi Lori!
I'd certainly apologize in case any of my comments hurt anyone of us community members. I'm sure you'd empathize with me at the shock I got & the pain I felt for what has happened with gbarney04. I simply wished that our friend would not have been crestfallen if we had the slightest opportunity to analyze the outcomes of such a coverage.
Regards, Fatman
Posted: Thu Sep 20, 2007 11:37 pm Post Subject:
Oh I know Fatman, that you didn't mean it that way, that's why I added,
You probably didn't mean it that way"
. Your posts always have a ''ring of kindness'' to them, and I always enjoy them. I was afraid she might take it the wrong way, as appeared it was her first time here visiting. And of course we want her to come back . :) I knew you'd set her straight. I've done the same thing myself ! :oops:Posted: Sat Oct 13, 2007 02:09 am Post Subject: Experience counts
Lincoln Benefit / Allstate
I've investigated many cases just like yours and know exactly what you're going through. It sounds like you were sold either a Universal Life (UL) or Variable UL policy. Of all the statements you claim your agent made, the one about her laptop not being able to show costs and expenses is the one I find the most questionable.
Your problem might be solvable but it is going to take some coaching and contact information I'm not comfortable posting on this site.
Go to www.markcolbert.com
Posted: Tue Jan 01, 2008 07:02 pm Post Subject:
Typical
This is exactly why I hate UL.
Not 1 in 100 people I meet should have it, but; all the companies want you to sell it as a first line product. Selling UL is about the only area in insurance that I think needs more restrictive regulation.
And selling any policy to some one who has been burned by UL in the past. Pa-leeese! :roll: It ought to be done away with.
Posted: Tue Jan 01, 2008 10:51 pm Post Subject:
Happy New Years everyone!!
Hey Steve, if it is put together correctly, Universal Life can be the best life insurance policy in the world. However, it can also be an agent's license to steal. I agree that more regulation is needed but not just in the UL arena.
In my workshops and seminars, I tell agents that there are 3 things that will, without question, make every Universal Life policy a winner:
Disclosure, Disclosure, and Disclosure. If it is that simple, why do so many agents abuse it?
Want to know what I feel would make the insurance industry a much safer place for the consumer? Heavy fines or jail time for dishonest agents. Churn an old Whole Life policy, show a vanishing premium on a new UL, falsify an illustration, and get caught; 6 months in jail for each count.
Wouldn't that really make life exciting for a large portion of the Million Dollar Round Table?
Posted: Wed Jan 02, 2008 04:36 pm Post Subject:
Amen
if it is put together correctly, Universal Life can be the best life insurance policy in the world.
IF.Disclosure, Disclosure, and Disclosure. If it is that simple, why do so many agents abuse it?
The big problem is a lot of newbie insurance SALESMEN and some senior agents don't really understand the product. They just parrot back what they are told and think they understand it.Heavy fines or jail time for dishonest agents.
That might well help change things a bit.I don't think agents should be allowed to sell UL without a special UL license. After you have been an active agent at least a year or more!
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