what can i do? already spoke to them and they arent telling the truth about sending a letter to me and they are giving me the run aroung
Total Comments: 3
Posted: Mon Nov 15, 2010 04:12 pm Post Subject:
Did you make up the payment? What type of insurance is this? Term or whole life?
This doesn't exactly make sense to someone who markets insurance products. All life insurance policies come with a grace period of at least 31 days. So "missing" a payment in a way that would adversely affect your coverage means more than just being a few days late.
If you have a cash value policy, the cash value would most likely be used to pay a missing payment, and keep your coverage in force -- but even if the automatic premium loan provision was not included in your contract, you cannot lose the cash value -- you have at least 3 "nonforfeiture" options to choose from.
If your policy is a term life plan, missing the payment after the grace period runs its course, on the other hand, could very well result in a policy lapse.
But all policies have a reinstatement privilege as well. Most states require a minimum of 3 years in which to prove insurability, pay past due premiums (possibly with additional interest), and receive the original contract with its original terms and provisions.
If an insurance company is truly stonewalling you, then file a complaint with your state's Dept of Insurance.
Posted: Thu Nov 18, 2010 11:09 am Post Subject:
Did you make up the payment? What type of insurance is this? Term or whole life?
Absolutely! I guess the OP needs to reply to these questions. It's also not clear as to why the OP feels that they're not telling the truth. Why would they get him into so much trouble after 45 years!
Posted: Thu Nov 18, 2010 03:34 pm Post Subject:
Unfortunately, we will probably never know, unless he returns and answers.
Why would they get him into so much trouble after 45 years!
It's not really a matter of letting someone get into trouble, it's simply living according to the contract. If the policy is a term product, once the grace period has passed, all bets are off. The policy has lapsed.
The question is probably about a cash value product. If it's 45 years old, it's probably going to be nothing more exotic than a whole life policy, unless the policyowner converted to a UL product along the way.
As a whole life product, about the only way a policy "gets into trouble" is when a policy loan is taken and interest/principal and premiums are not paid. If the policy was converted to a UL policy, then we're closer to discussing a term product. If the cash value is disrupted by a loan, or premiums are not paid, the CV will begin to decline as it is used to pay the monthly expenses (Cost of Insurance, policy fees, riders, etc).
As the Net Amount at Risk goes up, so does the monthly COI with advancing age -- a double-whammy -- and the decline accelerates. Eventually the CV gets close to ZERO and the dreaded 60-day advance notice of impending lapse arrives. Those letters are often ignored because the policyowner is paying his "scheduled" monthly premium and thinks all is OK.
But they fail to understand the importance of the following statement in a UL policy: If at any time the premiums paid or cash value is insufficient to cover the cost of insurance and other charges when due, this policy will lapse without value.
That, too, could be the source of the OP's discontent.
Posted: Mon Nov 15, 2010 04:12 pm Post Subject:
Did you make up the payment? What type of insurance is this? Term or whole life?
This doesn't exactly make sense to someone who markets insurance products. All life insurance policies come with a grace period of at least 31 days. So "missing" a payment in a way that would adversely affect your coverage means more than just being a few days late.
If you have a cash value policy, the cash value would most likely be used to pay a missing payment, and keep your coverage in force -- but even if the automatic premium loan provision was not included in your contract, you cannot lose the cash value -- you have at least 3 "nonforfeiture" options to choose from.
If your policy is a term life plan, missing the payment after the grace period runs its course, on the other hand, could very well result in a policy lapse.
But all policies have a reinstatement privilege as well. Most states require a minimum of 3 years in which to prove insurability, pay past due premiums (possibly with additional interest), and receive the original contract with its original terms and provisions.
If an insurance company is truly stonewalling you, then file a complaint with your state's Dept of Insurance.
Posted: Thu Nov 18, 2010 11:09 am Post Subject:
Did you make up the payment? What type of insurance is this? Term or whole life?
Absolutely! I guess the OP needs to reply to these questions. It's also not clear as to why the OP feels that they're not telling the truth. Why would they get him into so much trouble after 45 years!
Posted: Thu Nov 18, 2010 03:34 pm Post Subject:
Unfortunately, we will probably never know, unless he returns and answers.
Why would they get him into so much trouble after 45 years!
It's not really a matter of letting someone get into trouble, it's simply living according to the contract. If the policy is a term product, once the grace period has passed, all bets are off. The policy has lapsed.
The question is probably about a cash value product. If it's 45 years old, it's probably going to be nothing more exotic than a whole life policy, unless the policyowner converted to a UL product along the way.
As a whole life product, about the only way a policy "gets into trouble" is when a policy loan is taken and interest/principal and premiums are not paid. If the policy was converted to a UL policy, then we're closer to discussing a term product. If the cash value is disrupted by a loan, or premiums are not paid, the CV will begin to decline as it is used to pay the monthly expenses (Cost of Insurance, policy fees, riders, etc).
As the Net Amount at Risk goes up, so does the monthly COI with advancing age -- a double-whammy -- and the decline accelerates. Eventually the CV gets close to ZERO and the dreaded 60-day advance notice of impending lapse arrives. Those letters are often ignored because the policyowner is paying his "scheduled" monthly premium and thinks all is OK.
But they fail to understand the importance of the following statement in a UL policy: If at any time the premiums paid or cash value is insufficient to cover the cost of insurance and other charges when due, this policy will lapse without value.
That, too, could be the source of the OP's discontent.
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