by spurs.fan » Sun Aug 10, 2008 09:55 pm
I just discovered my wife has been paying $62 a month on a $3000 life insurance policy for her grandfather for over 10 years. It's not too smart, I know. But, is this legal?
Posted: Tue Aug 12, 2008 10:22 am Post Subject:
I'm sure Lori would scream at me when I add saying "all wives are made up of the same soft mud.."
You got that right! Are you kidding me, Arindam ? Do you have a wife? What does that mean that all wives are dumb? :? :twisted:Posted: Tue Aug 12, 2008 05:07 pm Post Subject:
What? :shock:
...and may your auntie's sister wash your mouth out with soap.
What's that? :?
Did I read what I thought I read? :?:
Did he say? "all wives are made up of the same soft mud.."
Take this...
How 'bout you and Lori go for a little swim?
Posted: Tue Aug 12, 2008 08:33 pm Post Subject:
Did he say? "all wives are made up of the same soft mud.."
Had to re-read it myself about six time! :roll: :evil:Posted: Wed Aug 13, 2008 09:53 am Post Subject:
BTTT:
I find it so hard to believe that ANYONE would purchase such a thing...
These policies are purchased by persons who are UN-insurable and/or UN-educated.
$15.90 per month for a $3,692 death benefit doesn't sound or seem like a lot of money to the insured person since they don't have anything to compare it against.....except maybe the term life commercials.
If they die by "accident" during the first two years the company pays the full $3,692. If they die by some disease process during the first two years the company's liability is limited to refunding the premium paid plus interest.
Which is why I stated above:
For those policies to be advantageous for the life insurance buying public they either need to die by accident the day after the policy is issued or die on the first day of the third policy year.
these types of policys should be illegal.
Hmmmmmm, no.
The insured is wanting a life insurance company to issue a policy WITHOUT submitting any evidence of insurability.
Common sense should tell you that is going to be the very most expensive life insurance policy on the market that you sold yourself.
I guess if you can't do third grade math maybe?
Exactly.
I don't think they start teaching the multiplication tables until 4th grade.
Posted: Wed Aug 13, 2008 10:55 am Post Subject:
The insured is wanting a life insurance company to issue a policy WITHOUT submitting any evidence of insurability.
You mean to say that these plans don't require medical underwriting or such to issue the policy, only the promise to pay the premium from the policy holder is sufficient to receive the coverage ?? :roll:
Posted: Wed Aug 13, 2008 11:59 am Post Subject:
Yes.
Can you imagine what the premium would be for an 18 year old male for auto insurance if they could get a policy without having to submit their driving record, tickets, DUIs, reckless driving citations, suspensions etc.
Simply GUARANTEE ISSUE the policy!
The premium may be $1,000 per month or more.
The same concept applies here and hence the cost per thousand for the life insurance is through the roof.
These policies truly aren't worth the paper they are printed on BUT no agent advisor was involved in the transaction and BECAUSE of that fact:
The insurance company can legally rob you by having you screw yourself.
Posted: Mon Aug 18, 2008 01:27 am Post Subject:
My question was meant to ask if it is legal for an Insurance Company to continue to charge the $62 each and every month. This was not a policy bought through TV. I remember when the agent used to come by each month to pick up the check. Shouldn't they have converted the policy or are they (or the agent) just pocketing the monthly premium? I beleive this was a policy sold to her elderly grandmother and continued out of a promise made to her grandmother before her death. I think it's a company called American National Insurance. Can they keep ripping her off?
Posted: Mon Aug 18, 2008 12:07 pm Post Subject:
My question was meant to ask if it is legal for an Insurance Company to continue to charge the $62 each and every month.
YES.
An insurance company charging premium to provide life insurance is perfectly legal.
Life insurance policies terminate in ONLY one of two ways:
#1) the insured person dies;
#2) the contract owner cancels the policy.
Why don't you have a discussion with your wife and grandpa and figure out at this point whether or not it would be better to surrender that policy for its cash value or continue making the premium payments?
Nobody on an Internet message board can help you. And $62 per month for a $3,000 policy isn't enough information without seeing the contract itself or without knowing the current cash surrender value of the policy.
Your comments below are non-sense rhetoric:
My question was meant to ask if it is legal for an Insurance Company to continue to charge the $62 each and every month.
Shouldn't they have converted the policy or are they (or the agent) just pocketing the monthly premium?
I beleive this was a policy sold to her elderly grandmother and continued out of a promise made to her grandmother before her death.
Meaning.... your wife continued a perhaps useless, under performing policy, on grandpa's life to keep a "promise" to her grandma?
What's the promise? Please pay more in premium than perhaps the policy's death benefit so when grandpa dies she get's back less than what she paid in premium? :shock: That's the same method by which average American's play the stock market and then when they lose they go ALL-IN and try to make it up on volume!!! :shock: :shock: :shock:
Can they keep ripping her off?
See statement above and below:
Life insurance policies terminate in ONLY one of two ways:
#1) the insured person dies;
#2) the contract owner cancels the policy.
Posted: Tue Aug 19, 2008 11:01 am Post Subject:
Just to set the record straight the "guest" post was me.
I had a corrupt cookie monster gremlin that I had to dispose of preventing me from logging on or off. :wink:
Posted: Fri Aug 22, 2008 09:31 am Post Subject:
I am puzzled to learn that there is such life insurance policy where the policyholder has to pay $62 a month or $744 a year for a $3000 benefit.
I wonder if there are other policy benefits that were not mentioned.
To my knowledge, term insurance annual premium is normally below 1% of the sum assured of the policy, whole life annual premium is around 2-3% of the sum assured and endowment annual premium varies from 4-6%.
$744 a year is a whopping 24.8% of $3000. Could there be some typo error where the $3000 is actually $30000?
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