Community Chat

[lovesrecess]

We have had a life insurance policy for 30 years. Got a letter yesterday saying we must send the company a check for $1300 by May 1 or the policy is cancelled. No explanation.has anyone ever faced a situation like this?  Oh, and if we send the money we can keep the policy and our premium will be $1200 per month. I called and the woman who is one of the "experts" it is perfectly legal and they are raising the premium because DH is over 70. How can this be legal? She said if we wanted to cash out of the policy they would give us $269.00 for it. It is a policy worth $150,000 for each of us. Not a huge amount for some people, but what a racket this is! Can't sell the policy. That is also a racket and we have looked into it. The company is a large, well- known one.

[godi]

I wonder if it has to do with the virus?  That's alarming though. Can you call your area governors hotline? If that's gouging they should be reported. 

[september]

I think you need to get out your policy, and read the terms. Sorry for this!

[Snowpuppy]

Whole life policies are always a poor investment.

As you age the premiums go up exponentially as you just found out. While your coverage has a guarantee of paying $xxx no company will guarantee your the price of premiums over 30 yrs.

[patbz]

About seven years ago DH and I had that happen with our long-term care policies.  The price doubled, so our costs went from $2000 to $4000.  This happened to many and reason was bank crisis and the huge increase in convalescent costs.  We kept the policies.

[Pearlee]

It's possible nobody is at work in their offices in your state and everyone is working from home but I would get in touch with my state's Dept of Insurance's legal department and also my state Attorney General's Consumer Protection division.
But first thing you need to do is to read your policy. No one can help you without this or this document because it has the terms. Be sure you have the original of what you signed.

[50Mickey]

That sounds like term insurance. When I retired in 2004 I took out 2 $150,000 on my self and my husband because I had a minor child and I wanted protection until she finished college. The premiums stayed the same for 15 years.  This term was level until 2019 and the then premiums went through the roof. We no longer need this coverage so I dropped it.  Term insurance is basically renting insurance for when you  need it and it is cheap. Once you reach a certain age it is no longer affordable.  Whole life basically has a premium that does not change but many do not think it is a good investment. 

[sann]

If you can discuss this with an attorney.!

[50Mickey]

I think you need to read your policy. This does not sound like whole life. I am willing to bet that you bought a term policy. The premiums stay the same for a period of years and then they skyrocket. You basically rented coverage. It is not a ripoff or anything illegal  if it term insurance. 

[KKJ]

DH and I are what you call insurance poor. We have several different life ins. policies we've been paying on prob.30 yrs.  They are ones that have accumulated cash value but the death benefit is set amount. Is that a term policy?