by Guest » Sat Mar 14, 2009 10:49 am
I was recently contacted for life insurance by an old friend who is currently an agent with shenandoah life insurance company. The plans sound good but I've also heard that things went really bad with the company in the present market crisis.
Its difficult to decline a friend but at the same time I don't want to waste my money as well. Any suggestions? Is it or is it not right to purchase policy from shenandoah life insurance company?
Its difficult to decline a friend but at the same time I don't want to waste my money as well. Any suggestions? Is it or is it not right to purchase policy from shenandoah life insurance company?
Posted: Wed Apr 22, 2009 09:30 pm Post Subject: Shenandoah Life
SBoyd....other insurance companies that are still in business are supposedly interested in buying or taking over Shenandoah's business. If and when that happens your money will be there for you.
As long as their not liquidated, you'll be okay with being able to get your money/cash value.
Posted: Wed Apr 22, 2009 11:58 pm Post Subject:
What i presume about your definition of cash value is 'total premium paid to Shenandoah Life Insurance ----minus ---- policy maintenance charges.
What happens whenever any new company takes over the older one then they take their liabilities as well as assets.
So in this particular case you won't find any difficulty to get back your accumulated cash value if govt sells out Shenandoah's business to some profit making insurance company.
Then surely in this case you can hope to get all the principal amount back which you consider as a savings account.
I hope you and all those who are suffering from this type of problems will get their hard earned money back as soon as govt hand it over the business of Shenandoah to some reputable firm.(there are some !!! i am not pointing to AIG!!!)
Amit, that is not the definition of cash value. "Cash value" is really a misnomer. The correct terminology is "cash surrender value". This is the amount of money that one would get from the insurance company if they were to surrender the policy. Based upon your definition, the cash surrender value would always have to be less than the premiums paid and this simply isn't the case.
The death benefit of the policy will certainly be safe. It is not definite that the cash surrender value will be safe.
Amit, please don't take it personally that I point out that you are incorrect.
Posted: Thu Apr 23, 2009 10:37 am Post Subject:
Hi Sboyed, I can understand your frustration and there are many like you who are at lost with the developments in Shenandoah Life. Your cash-value with the policy is safe. Only that the Deputy Receiver has imposed certain restrictions upon paying out claims and cash value. But you may continue paying premium on the policy since non-payment would let the policy lapse.
Let us know if we can be of more help.
Posted: Thu Jun 04, 2009 11:20 pm Post Subject: RECEIVERSHIP
The last I heard on Shenadoah Life they were is Receivership, meaning the company was merging with another company. At that time they were not taking any new business.
Posted: Thu Sep 30, 2010 03:13 pm Post Subject: annuities
I have my savings in an annuity with shenandoah life.Will I lose my movey?
Posted: Fri Oct 01, 2010 12:40 pm Post Subject:
Only if the insurer becomes insolvent is that a likely outcome. What makes you nervous?
Posted: Sat Oct 02, 2010 07:29 pm Post Subject:
Max, I don't understand. Even if Shenendah Life is insolvent, it is still not a likely outcome that she'll lose her money.
Posted: Sun Oct 03, 2010 05:15 am Post Subject:
Well, that depends on the amount in the annuity, doesn't it? If it ends up in the lap of a state guarantee association, if the value exceeds the association limit, then they are only going to get the association limit. Everything else would be "lost". It has happened.
For example, California's Life and Health Insurance Guarantee Association will cover up to $100,000 in cash value or present value of annuity benefits, but subject to an 80% limitation. So even if the annuity is valued at $100,000, the Association's payment limit would be $80,000. Other states' guarantee association may have different limits of liability . . . but they all generally follow the same "80% up to $xxx" language.
Only when contracts are purchased by other insurance companies might there be different outcomes. Annuities are harder to place, because some insurers don't want to fund the liabilities rightfully belonging to other insurers.
Posted: Sun Oct 03, 2010 01:56 pm Post Subject:
It doesn't matter on the size of the annuity. Let's assume that it is $1,000,000. You said that it is a likely outcome that she'll lose her money if the insurance company becomes insolvent.
I'm saying that it isn't likely. I think that you'll be hard pressed to find a single example of someone losing most of their money in an annuity due to an insurance company's insolvency.
It's possible that she'll lose her money. I'm just saying that it isn't likely. The odds favor it being less than $100,000 and if it is greater the odds still favor her getting all or most of it back.
Posted: Sun Oct 03, 2010 01:59 pm Post Subject:
Max, you are too knowlegeable to be posting the amount of incorrect information that you post. For instance, California's "80% up to $xxx" language", is the exception and not the rule. Most do not have this percentage limit.
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