by Guest » Fri Aug 31, 2012 12:05 pm
My insurance agent is trying to sell me a policy at pretty cheap rates. But there is only thing that is making me doubt him. He promises that it would turn into a paid-up policy in around 7 to 8 years. Is that possible?
Posted: Fri Aug 31, 2012 06:03 pm Post Subject:
"cheap" and "paid up" aren't two words that go together unless they are combined with "teeny tiny policy".
Policies don't turn into paid-up policies unless they are contractually guaranteed to do so. It is possible that after a certain number of years, out of pocket premiums aren't necessary, but that is in no way equivalent to a policy being paid up. His promise is useless if that is the case.
If you want something that is paid up, make sure you see a guarantee in writing from the insurance company.
Trust your instincts when they are doubting something.
Posted: Tue Sep 04, 2012 12:31 pm Post Subject:
He promises that it would turn into a paid-up policy in around 7 to 8 years. Is that possible?
As was said above, this is ONLY TRUE if the contract says something like "Paid up at age (add 7 or 8 years to your current age)" or "Seven-Pay" or "Eight-Pay" premium schedule on the Specifications Page of the contract.
The contract between an insured and an insurance company is comprised of EVERYTHING BETWEEN THE STAPLES -- and unless you are the world's greatest magician, it is impossible to staple the spoken words of an agent to those pages. And even then, if you could, other language in the contract says, "No agent may waive or modify any of the terms or provision of this contract."
If an agent tells you a policy will be paid up in as little as 7 years, he/she is probably LYING and needs to be reported to your state's Dept of Insurance.
Anyone who currently owns a policy that was purchased on the basis of a statement such as this made by an agent, please contact me for an analysis of your situation. It could be the basis for a class action lawsuit. If nothing else, it is often possible to get all of your money back from the insurance company just to keep you "quiet."
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