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: Sat Aug 23, 2008 10:47 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.
These are GUARANTEED ISSUED policies.
No underwriting, no medical questions, no attending physician statements, no medical records, no para-med exam, no blood, no urine, no height, no weight, no nothing... EXCEPT your signature and your check.
You can have AIDS, cancer, heart attack, stroke, diabetes, be 5 foot tall and 500 lbs, have cognitive impairments, DUIs, drug addict, crack addict, run a meth lab, be a street walking worker, AND THEY WILL STILL ISSUE THE POLICY BECAUSE THEY DON'T ASK ANY QUESTIONS!
These are very small face amount contracts with HUGE premiums relative to the cost per thousand.
I'll say it again:
The insurance company can legally rob you by having you screw yourself.
I'm not quite sure which is worse???
These contracts that EVERYBODY qualifies for OR the insurance company that advertizes a male age 40 could get $250,000 of life insurance coverage for less than $15 dollars per month that NOBODY qualifies for?
Could being the operative word.
Well at least they underwrite then offer you a contract at double the advertized rate. :shock: :roll:
Posted: Thu Aug 28, 2008 07:25 am Post Subject:
Even if such insurance is not illegal, there is moral issue here.
Insurance should be a cost-effective way for people to transfer their risks and insurers manage the risks by assessing the risks and decide appropriate amount of premium.
In the absence of cost-effective element and risk assessment, these guaranteed issued policies appear more than a gambling tool.
The insured has to die early so that there is a financial gain. Otherwise, he becomes a loser if the total premium paid is more than the policy benefit.
I understand that such products are meant for people who are uninsurable.
If that is the case, there should be some remark on product brochures, application forms or contracts to notify the customers the intention of such insurance. Just like the rating guide for movie goers. There are movies rated PG and there are movies rated 18SX etc.
Posted: Wed Sep 10, 2008 05:10 am Post Subject:
I'll bet the mud smells nice
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